Six common misconceptions about super
Our friends at ME Bank created the below video to debunk six major misconceptions Australians have about saving money – and help people fatten up their piggy banks! You can watch the video below, or via YouTube here.
We’ve noticed many Intrust Super members have similar misconceptions when it comes to retirement savings. So we’ve put together the most common misconceptions we’ve heard about super – and what you can do to overcome them!
Misconception #1: There’s no point making small contributions to super
Multiple small contributions made over time could grow to thousands of extra dollars in retirement. So you certainly don’t need to be making big super contributions to make a difference to your savings. In fact, our new app, SuperCents®, can help you start making small, regular contributions by rounding up your everyday purchases and transferring them to your super account! Learn more about SuperCents® and download the app today!
Misconception #2: You won’t get benefits from your super until retirement
As an Intrust Super member, you can have access to affordable financial protection through insurance in super. Eligible Intrust Super members can be covered for up to 90% of their income with PayGuard income protection insurance, and up to $300,0001 through Life and Total and Permanent Disablement cover (more cover can be applied for). Best of all, premiums are managed through your super account, not your back pocket. In addition, members can also access 4,500 discounts and special offers through Intrust Super Rewards! Save money on your everyday expenses now, so you can have more for your retirement.
Misconception #3: Your savings will just grow by themselves
It’s true that superannuation is designed so that your retirement savings can grow for you in the background through employer contributions. But if you aren’t engaged with your super, and have accumulated multiple accounts across your career, your savings could be reduced by multiple fees. Intrust Super members can check their balance and consolidate their accounts just by logging in to their online super portal, MemberAccess2. Engage with your super today and help your savings grow altogether in one account – log in to MemberAccess!
Misconception #4: It’s complicated to set up extra contributions
Intrust Super has made contributing to super as easy as possible for our members. You can set up regular direct debits online, to have money automatically debited from your account and straight into super. You can also make personal contributions via BPay, or set up salary sacrificing straight through your employer.
Want an even easier way to contribute to super? Download SuperCents® and start growing your retirement savings without even thinking about it.
Misconception #5: You don’t need to worry about your retirement savings yet
The earlier you start looking after your super, the more opportunity your money will have to grow. Let’s say you started saving $5 each week into your super account for the next 30 years until your retirement. Your total savings would add up to $7,800, but the interest you earned on them could equal over $10,200 – so over $18,000 in total3. All that for the equivalent of one coffee purchase every week!
Misconception #6: All super funds are created equal
There are so many points of difference with each super fund, so it is important to consider the whole package when it comes to super. Insurance, long-term returns, admin fees and investment options can all make a big difference to your ultimate retirement balance, so it’s important to consider every aspect.
Intrust Super has industry fund low fees, ‘best value for money’ insurance4, strong long term returns5 and provides a variety of investment options to members. If you’re not already a member, find out more about Intrust Super and join today.
1Cover for an amount of $300,000 applies to Intrust Super Core Super | MySuper members aged under 40.
2When consolidating your super funds, you should ensure that you consider the adequacy of your insurance cover and policy terms under your existing superannuation accounts.
3Source: ASFA’s Compound Interest Calculator. Assumptions: Initial deposit of $0, interest rate of 5%, does not include employer Superannuation Guarantee contributions. This is a model, not a prediction. Results are only estimates – the actual amounts may be higher or lower.
4Awarded by Money magazine between 2013-2018.
5Intrust Super has been awarded a Platinum rating by SuperRatings for the last thirteen consecutive years. More detail regarding our historical returns can be found at https://www.intrustsuper.com.au/unit-prices-returns/. Past performance is not an indication of future performance.