Did you know that on average 45% of Australians have two or more super accounts1?
In this short video (2.32), Karl from AMP discusses why having multiple super accounts could lead to thousands of dollars lost, while bringing all your super into one account, or consolidating, could mean thousands of dollars in savings.
Super funds can offer different benefits and features, so be mindful that these benefits and features will not automatically transfer across if you consolidate your super, and that exit or withdrawal fees could apply.
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For further assistance:
- Learn more about the different types of super contributions and how consolidating your super could minimise the fees you pay
- Try our super simulator to see if you’re on track to achieving your retirement savings goals
- See how additional contributions can grow your balance with our salary sacrifice calculator
- Find the right financial adviser for you.
What does the video cover?
Karl from AMP talks about super consolidation, which is simply a process by which you bring all your super accounts together.
He explains that growing the money you have in super depends on a few things, such as how much you put in, the investment options you choose and how much money gets taken out in fees.
Because we may change jobs from time to time, many of us have more than one super account, with figures from the Australian Taxation Office showing that around 45% of Australians who have savings inside of super have two or more accounts.
By having extra super accounts you’re likely to be paying multiple sets of fees, which could mean less money for you in the long run.
For example, if you change jobs three times over thirty years and have established three super accounts, you’re probably paying three sets of fees when you could just be paying one.
This is a simplified example, but it demonstrates the point—more fees could mean less money for you.
The good news is it’s easier than you think to consolidate your super into one account and it could save you thousands of dollars, and mean less paperwork as your super will be in one place.
It’s important to remember, different super funds offer different benefits and features and these won’t automatically transfer across. Insurance is one example and there also may be exit and withdrawal fees.