For many of us, the world of superannuation can be a confusing one. But it doesn’t need to be. HESTA has busted the most common super myths to help keep your retirement planning on the right track. 

Myth: It’s better to spread my super across different funds 

Fact: Your super is like any savings account: the more that’s in it, the more it can potentially earn through compounding investment returns, which is interest earned on interest. When you have multiple accounts, you also pay multiple sets of fees and costs. That’s why it’s important to consider keeping all your super together in one place. Before you combine your super into one account, be aware that your benefits with other funds, like insurance, may stop.  

Myth: I can’t access my super until I’m 67 

Fact: You can access your super when you reach your preservation age, which is usually between 55 and 60. You’ll also have to meet other eligibility requirements, like being retired from work. There may be other circumstances where your super can be released early, like financial hardship or compassionate grounds.  

Myth: My employer makes contributions to my super, so I don’t have to 

Fact: Under the super guarantee until 30 June 2024, your employer contributes a minimum of 11% of your salary to your super. Although this will increase to 11.5% on 1 July 2024 and 12% on 1 July 2025, these contributions alone may not be enough to give you the retirement you want, particularly as our life expectancy increases. That’s why you can make your own contributions to your super on top of what your employer pays, if you can afford it.  

Myth: I have to change super funds when I change jobs 

Fact: If you’ve got a new gig, congrats! These days, your super fund can follow you from job to job, so if you want to stay with your current fund, you’ll just need to let your employer know using the ATO superannuation standard choice form they give you when you first start. You can do this by including your member number on the form, which you’ll find on your annual statement.  

Myth: I don’t need to think about my super until I’m older 

Fact: Retirement might seem like a long way off for many of us, but the sooner you start paying attention to your super, the more time there is for your balance to grow. Thanks to the power of compound interest – which is interest earned on interest – even small actions now can make a big difference to your retirement. It’s never too early to combine your super or make extra contributions.  

Myth: Super is all the same, it doesn’t matter which fund I’m with 

Fact: Not all super funds were created equal. One way to figure out how well a fund is performing is by looking at the ‘net benefit’. This is a calculation of your investment earnings after fees and taxes have been taken out. HESTA has earned the SuperRatings Net Benefit award in 2021, 2022 and 2024, which recognises them as the Australian super fund with the best net benefit outcomes delivered to members over the short and long term1. 

This article was sponsored by HESTA. 

1 Product ratings and awards are only one factor to be considered when making a decision. 

Issued by H.E.S.T. Australia Ltd ABN 66 006 818 695 AFSL 235249, the Trustee of HESTA ABN 64 971 749 321. This information is of a general nature. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this. The target market determination for HESTA products can be found at hesta.com.au/tmd. Before making a decision about HESTA products you should read the relevant Product Disclosure Statement (call 1800 813 327 or visit hesta.com.au for a copy) and consider any relevant risks (visit hesta.com.au/understandingrisk).