We are the first to admit talking about Super consolidation isn’t the most exciting topic in the world – which is probably why most Australian’s seem pretty ambivalent to taking proactive action when it comes to paying too much in Super fees.
Did you know?
The recent Productivity Commission recently estimated:
- Australians are paying $2.6 billion extra a year because of multiple Superannuation accounts (cost of paying duplicate fees and insurance); and
- Around 2.5m people have two or more Super accounts.
On top of this around over $17 billion dollars sits in lost and unclaimed super money in Australia.
While lots of Australian’s KNOW they have more than one Super account and are therefore paying extra fees and insurance premiums – most aren’t doing anything about it.
As a result, the Government announced that as part of this year’s budget, insurance in Super would be “opt-in” for people under 25, inactive accounts or where the balance is below $6,000.
4 Reasons Why You Could Be Paying Too Much In Super
The hassle – we get it – some Super funds don’t make it easy for you to transfer Super from one provider to another, and there usually is forms to fill out.
Forgotten Super funds – if you’ve changed jobs, you might not realise that you now have two separate Super accounts. Unless you give instructions to your new employer where you want your Super payments to go, it’s very likely they have set you up with a new account using their default fund, and don’t always assume that your employers default fund is right for you.
Too much choice – even though you know you have two or more Super accounts and want to consolidate, given the range of options out there, how do you know which one is the best one to pick?
Diversification – don’t want to have all your eggs in one basket and therefore splitting your Super savings across multiple fund providers? While this makes you feel comfortable about not losing your savings, it could be costing you in unnecessary fees.
We are here to help!!
If you think you have (or know you have) multiple Super accounts and not sure how to consolidate them into one fund or what fund to consolidate them in to – get in touch with us today for a FREE consultation.
You can read more at the Australian Financial Review.