There are many myths floating around out there: panthers living in the Blue Mountains, the infamous Picnic at Hanging Rock, the bodies in the Sydney Harbour Bridge pylons – and the list goes on!
There are also quite a few myths out there about super which, if believed, can have a huge impact on your retirement. Here, we debunk the top super myths to help you get on with it.
Myth #1 – employer super contributions will be enough
One of the most commonly-held myths is that the standard employer contribution will be enough to allow individuals to live comfortably in retirement.
The fact is that for most people, relying only on employer contributions and not making your own voluntary contributions into super may not be enough. And the numbers back this up: it’s reported that 25% of Australians are expected to outlive their savings by more than 10 years*.
There’s a simple fix for this problem: make your own contributions if you can, every little bit helps!
* Source: Rice Warner, June 2014: Retirement Savings Gap as at 30 June 2014.
Myth #2 – investment options in super are all the same
This is a really important myth to debunk because your super is one of the biggest investments you’ll ever have, so not getting your investment strategy right puts you on the back foot.
No two of Maritime Super’s investment options are the same. Some of our investment options are diversified (meaning there’s a mix of defensive and growth assets in varying proportions) and some are sector options (meaning they’re invested in one asset category). Each investment option has an expected risk and return outcome that you should be familiar with to ensure it suits your needs and expectations.
It’s really important to get your investment strategy right, so if you’re unsure about investing your super, our financial planners can give you some free advice over the phone – just call them on 1800 757 607.
Myth #3 – financial planning is only for the wealthy or those who have retired
Big. Fat. Myth. We’re not sure where this one came from, but it couldn’t be further from the truth. The fact is that not getting financial advice can cost you more in the long run. That’s because many people underestimate how much they need for retirement and, as we mentioned earlier, 1 in 4 of us will run out of money in retirement.
Whether retirement’s a long way away, or just around the corner, seeing a financial planner now can really set you up for the future. And it’s one of the best investments you can make in your future. In fact, often our members are surprised at how reasonable the cost of financial advice is through Maritime Super.
Myth #4 – small contributions don’t count
Many people don’t bother making small contributions into their super because they think that small amounts won’t have any impact on their super balance – right? Wrong!
Don’t believe us? See for yourself – try our Retirement Income calculator to see how even $5 or $10 a week contributed to your super will help you come retirement time.
The key to making these small contributions count is to start early and make regular contributions to let compounding returns work its magic.
Make voluntary contributions here.
The information on this page has been issued by Maritime Financial Services Pty Limited (MFS). It contains general information that doesn’t take into account your individual objectives, financial situation or needs. It’s important to consider how appropriate this general information is in relation to your situation before making an investment decision. We recommend that you seek financial advice before making any decisions regarding your super or investments. The information on this page is current at the time of publishing.