Don’t wait until it’s too late

People are “robbing themselves” by not taking an interest in where their superannuation money is going, a new Australian report reveals.

The report, conducted by financial research group Canstar, shows the two most common super myths are reported as being; “it’s not really your money” and “it’s the responsibility of your employer”.

Canstar financial analyst, Joshua Zenas, tells news.com.au many people do not partake in their super until they are in their 50s.

“By then it’s way too late to accumulate the wealth required to maintain their current lifestyle in retirement,” Mr Zenas says, adding if a person wants a “comfortable” retirement, they need to contribute to their superannuation.

According to Mr Zenas, people need to be “wise” and regularly talk to their financial adviser about their super at different stages of life after the report shows the four biggest superannuation ‘money suckers’ as being:

1. Having more than one super account.   
2. Not choosing the right investment option.
3. Paying too much in administrative fees and ignoring the tax benefits built into super.

Being realistic, salary sacrificing and reviewing your fees are some of the tips Mr Zenas says may help in building your superannuation fund.

Other advice offered includes covering assets to super and taking advantage of the government’s co-contributions incentives. Mr Zenas also mentions if you are over 50 years of age, you can allocate up to $50,000 a year to your super at a concessional rate.

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