According to the Australian Bureau of Statistics, superannuation is becoming a primary source of income as people age. Today, more and more Australians are showing an interest in their supers. There are plenty of references to help people learn and better manage their supers.
However, one problem that stands in people getting better educated is some common misconceptions about superannuation. Many people can still easily be turned off, scared, or disinterested because of widespread misconceptions.
Today, let's explore a few of people's most common misconceptions about superannuation and debunk them.
Here's what you need to know:
"I Have No Control Over My Super"
There are many people out there who believe that they have no control over their super. What makes it a misconception is that there are many ways to make your super grow or achieve specific goals.
This is a process that involves different things. You can choose to invest in different assets which will go long-term for a growth strategy. You can do the money market and just wait for a few years for the return. The best thing about it is that you can still control how you invest your money. You can also draw a pension from your super.
"I Can't Get My Super Without Being Employed"
Another common misconception is that you can only get your super when you retire from your job. This is not entirely true. It is a misconception that there is more to a super fund than only the superannuation contributions you make.
Many people don't know that superannuation is paid out to them in different ways when they stop working. You can do what you need to do to choose how to get the money by choosing between lump sums, pension payouts, or a combination of both.
"I'm Too Young to Think About My Super"
Many people are scared by this misconception because they think that they are too young to start thinking about their super. What makes it a misconception is that every year is precious when investing your money.
There are many people out there who decide to put their money in a super fund without knowing the benefits it can bring to them. Aside from the fact that a super payment comes with tax benefits, you can take what you have left and put it in a non-super account.
"I'm Too Old to Start Thinking About My Super"
What makes it a misconception is that you can still do many things with your super. It can benefit you a lot, and you can still benefit from it even if you are not planning to draw it early.
For people who want to grow their super, you can still invest it in different assets like property. You can earn a lot from it if you hold it long enough.
The Bottom Line
We all know that superannuation is vital in replacing the income we will lose when we stop working. Without superannuation, we could all end up financially destitute if we don't have a solid plan for our retirement.
Misconceptions can lead people to make a lot of wrong decisions. This can be very costly and stressful if you are not knowledgeable enough. So if you don't want to fall prey to misconceptions, make sure you do your homework and use different resources to get the information you need.
Here at Wealthy You, we want to help. We are an Australian mortgage company based in Sydney. We provide our clients with the best service and advice to help them achieve their dream home. If you want to learn how to use your super to buy property, contact us today to learn more about your options and start your journey!