So you’d think that most of us would have made sure that we had all of our superannuation savings all sorted out and in one account, right? Well, apparently it’s wrong!
According to figures from the Association of Superannuation Funds of Australia (ASFA), the average working Australian actually has three separate superannuation accounts. In fact, a survey earlier this year by ASFA found that almost half of Generation Y and close to 40% of Generation X have “not got around” to consolidating their superannuation accounts yet.
The same survey also found that, despite all the advertising by the Government to build awareness of the issue, 20% of Gen X and Y are not aware if they have any lost or unclaimed super, nor do they know how to find out.
Unfortunately, it is younger Australians have the most to gain by reducing their fees by consolidating their super funds. As the CEO of ASFA, Pauline Vamos, has been quoted as saying, “With the effect of compound interest, every dollar you put into your superannuation before age 35 will be seven extra dollars when you retire. This means every dollar you save on unnecessary fees, or every dollar of lost super you find, is worth seven times more to your retirement savings.”
As the radio and TV advertising tells us, if you’ve had more than one job during your career, chances are you have more than one superannuation account…and are paying more than one set of fees.
So if you do nothing else this month to improve your financial position, why not take a few minutes to find out if you have any Superannuation funds that you’ve lost touch with? The ATO has a free online service called ‘SuperSeeker’ that is designed to help you track down any lost funds.
AUSfund holds lost funds from many of Australia’s biggest superannuation funds and has a free service to help you locate them and transfer them into active super accounts.
You can also contact your existing superannuation fund and ask them to help you consolidate your accounts. Most funds are happy to do a search and to take care of most of the leg work for you.