Keeping all your super in one place is a smart move. In this article, we’ll look at the case to consolidate.
Give me the main points
- 40% of Australians have more than one super account.
- There’s at least $14 billion dollars sitting in ‘lost’ super accounts.
- Consolidation makes it easier to keep track of your money.
- It cuts down the paperwork and it can save on account fees.¹
Since 40% of us have more than one super account¹ - which usually occurs when we start a new job - you'll understand the recent advertising blitz urging people to consolidate their super accounts. There are other advantages: combining your super savings into a single account will make it easier to keep track of your money, cut down on paperwork, and potentially reduce the amount of account fees you have to pay.²
Remember, Australians hold at least $14 billion in ‘lost’ super accounts, money they’ve probably forgotten about. It’s an astonishing amount – the GDP of Malta or Mongolia. Around $600 for every man, woman and child in the country.¹
Little effort. Big payoff.
You can roll your super into a single account electronically or via paper form, the old school way. And because we like to make things easy, MLC, our superannuation specialists, will even help you set up an account and find any lost super hiding out there.
Before you make the decision to consolidate, it’s important that you:
- Confirm that your new fund will offer you (and you can obtain) appropriate insurance cover* to replace any cover you may lose if you change funds;
- check to see if there are any termination or exit fees from your current fund;
- compare the total fees with your existing funds;
- consider the impact on the tax and preservation components of each of your existing funds; and
- check with your employer that they’re able to contribute to your chosen fund.
* Appropriate insurance can include level and types of cover as well as policy terms.