Superannuation. It’s a big word, and it can seem really complicated. But sorting out your super is easier than you may realise, and it could save you thousands.
On average, people pay over $500 a year to maintain a super account. The problem is, according to the Australian Taxation Office (ATO), about 45% of Australians have multiple super accounts. And if you’re in that 45%, you’re paying around $500 a year for each account. That adds up very fast.
Do you have multiple accounts?
Have you changed jobs a few times? Did you take your super fund with you, or open a new one? It is possible that your employer opened a super account for you.
You may know that you have multiple super accounts because you receive different super statements. Or you may have lost track of a super account, especially if you changed address and didn’t update your contact details. There are more than $5 billion in lost super accounts across Australia.
Fortunately, whether you can answer all these questions or not, solving your super is not as complicated as it used to be. Hunting down your superannuation used to require a lot of paper shuffling, but now the new MyGov website has made things much easier.
Choosing your superannuation account
Once you can view all your super accounts, you may choose to consolidate them. This can save you fees from maintaining multiple accounts and make your super more manageable. Make sure you get a finance adviser on side to help you make the best choices for your situation.
If you wish to consolidate, make sure the account you choose is one that your employer can contribute to. Check what insurance your chosen fund provides. You may find that the best fund for you is not the one you were expecting, so talk to your adviser and take some time to decide which account you want to keep, or if you’d rather open a new account altogether.
Super is something that’s worth doing well. To be connected to a professional finance adviser for advice on choosing or managing your superannuation, or any other part of your financial well-being, contact our experienced team today.