3 super myths debunked

There’s a lot of information out there about super, but how do you know what applies to you? What information is relevant? Super can be complex, but we don’t believe it needs to be. Improving your knowledge and understanding of super is always going to be one of the best ways to effectively manage your savings and maximise your chances of retiring with as much money as possible.

To get you started, we debunk 3 common myths about super and get you on the right path to start planning for your big tomorrow.

Myth 1: You don't need to worry about super until later in life

Super is a long-term plan that ideally begins well before you retire. When you start working, you will nominate a super fund to manage the money. Your employer will pay your super contributions into your account as part of your wage. Over time, those contributions will grow, and you will benefit from compound interest. The more time you have to grow your super balance, the better. Starting early will likely put you in the best position financially later in life. Ideally, you also want to ensure you have one super account so that you are only paying one set of fees, and your account will be easier to manage. This is called consolidating your super.

Myth 2: Super is something you can set and forget

Of course, you can leave your super sitting in an account and hope for the best, but did you know that your super fund will invest your super savings with the aim of making you more money? Most funds let you choose the investment option(s) your money is invested in, and most will also have a default option that you get invested in if you don’t make a choice. This means you can play an important role in how your savings are managed and, ultimately, how much money you end up with when you retire. On top of that, there are various strategies and schemes that you can take advantage of to keep improving your super and/or financial position, such as salary sacrificing and other opportunities, including the First Home Super Saver Scheme.

Myth 3: You can't withdraw your super early (compassionate leave)

While there are very limited circumstances when you can access your superannuation before retirement age, there are some cases where you may be able to on compassionate grounds. Compassionate grounds include needing money to pay for medical treatment or a medical procedure. Applying for compassionate release of superannuation and any approvals happen through the Australian Taxation Office (ATO).

Find out more about your super

Did you believe any of these myths? They’re common, and there are many more that are important to bust. The best way to ensure you have accurate information is to keep improving your financial literacy. At NGS, we have a range of resources, including articles, webinars and socials, that you can access to keep you on the right track.

It's also a good idea to book a free chat with an NGS Super Specialist. Our Super Specialists are here to help. They can answer your questions about superannuation and clear up any confusion you may have.

Book your free chat with a Super Specialist