According to the ATO, of the 16 million Australians that had superannuation in 2020, there are still 20% that have 2 accounts, 5% with 3 accounts and 2% with 4 or more super accounts. Why do multiple accounts matter? More accounts mean more fees and will cost you more in the long run – overall reducing your retirement savings.
According to the ATO, of the 16 million Australians that had superannuation in 2020, there are still 20% that have 2 accounts, 5% with 3 accounts and 2% with 4 or more super accounts.
Why do multiple accounts matter? More accounts mean more fees and will cost you more in the long run – overall reducing your retirement savings.
While some people choose to hold more than one account, it is estimated that these could cost a total of $2.6 billion every year in fees to those with multiple accounts. You also need to consider the cost of multiple insurance premiums, adding to overall fees for individuals.
Having more than one super account could greatly impact your retirement plans. Here’s why:
Most people end up with multiple accounts when they change jobs, move house or forget to update their details. You may also get a new super account when you change jobs and let your new employer choose the fund.
There are a few things to consider before you consolidate super accounts.
There are 3 key types of insurance products offered via super.
Be aware that some funds offer members insurance cover that can be difficult – and expensive – to obtain elsewhere.
Check the details of each of your accounts to decide which fund best suits your needs and superannuation goals. Don’t just choose the account with the highest balance, review the fees and charges for each and make the decision that works for you in the long term.
It is a very quick and easy process to consolidate your super accounts and only should take you around five minutes.
Follow the steps below to easily consolidate multiple superannuation accounts.
You can only transfer the entire balance from one super account to another using MyGov. If you only wish to transfer part of the balance you will need to contact the super fund directly, rather than using the myGov and ATO websites.
You can also complete the ATO’s rollover request form if you don’t have a myGov account. Alternatively, the ‘receiving super fund’ may also be able to assist you with the transfer process.
The team at WealthSmart can provide expert specialist advice no matter what your age or stage of life. We also take into account your financial situation and make recommendations based on the best outcome for your financial future. Talk to our team today or you can find more information on Superannuation via our website.
General advice warning. This advice does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. Should you require any help please contact Wealth Smart on 1800 765 100.