Did you know that as at 30 June 2016, over 14.8 million Australians had a super fund account and that 43% of these people had more than one fund….each charging fees? If we narrow this down, people between the age of 30 and 55, during the most productive years of their life are often with multiple accounts, eating away the funds that they are working so hard to put into their super. This is also the same with pension accounts, whereby 47% of individuals with pension funds, have more than one and are therefore not reaching their optimum efficiencies.
Now let’s talk dollars… Have you ever had super from jobs from long ago? Perhaps you have changed your address? Or lost the statements? The ATO reports that the average size of lost or inactive super account is around $20,000. This may mean that you have super that is in your name, that you may have lost over the years.
Did you know that if you have more than one superannuation fund, it is extremely likely that you will have insurances within each fund, lowering the balances of these funds quickly?
In a nutshell…
- If you have more than one super fund, you are paying too much in fees
- If you have more than one super fund, you may have too much insurance or insurance that is inadequate for your needs
- You may have lost super which we can track down for you, especially if you have had lots of jobs
- By consolidating your super, it is likely that you are able to increase the returns and prepare better for your retirement.
Source: Michael Degtyar
Michael is a Financial Planner at Quest Advisory Group.