Do you spend more time buying a TV than planning your retirement?
People spend more time looking for a new tv than planning for retirement.
According to a study done in the US by the Teachers Insurance and Annuity Association (TIAA) of America-College Retirement Equities Fund (CREF), people spend more time shopping for a tv than choosing a retirement account.
A total 21% of respondents spent two or more hours buying a TV that year, while 15% said they spent the same amount of time planning for their retirement.
25% of people spent more than 2 hours finding a restaurant. Heck, even buying a tablet (16%) played a bigger part in people’s’ lives.
A more recent survey by Charles Schwab found more than 50% of people spend five hours or more doing research before buying a car, while 39% were planning holidays.
Just 11% of people spend five hours or more researching their retirement strategy.
One-third of responders spend less than an hour on investment research.
Does it matter?
According to MoneySmart, a 1% increase in fees can mean 30% less at retirement in 30 years.
A Google search for a super fund’s “PDS” shouldn’t take more than a few minutes. Reading the “Fees” section takes another minute or two, and calling your super fund to ask about your fees and strategy probably take another five minutes.
10 minutes of mucking around for the chance at 30% more in retirement? Sounds like a good deal to me!
“Compound interest works both ways, meaning, while your money adds up, your fees can really add up too,” says John Oliver, host of Last Week Tonight. “So think of fees like termites: they’re tiny, they’re barely noticeable, and they can eat away your f%@king future.”
In Australia, most people can get access to their superannuation in their late 50’s or once they turn 60. However, the age to receive the Government pension is slowly creeping upwards towards 67.
With men and women expected to live to age 80 and 84, respectively, the need for some type of forward planning to cover the gap appears worthwhile.
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