In fact, this is often where people fall into a bit of a ‘trap’ but if you can pay attention for the next few moments, we might be able to get you out of that ‘trap’. Let’s go…
Let’s start with the facts:
Most individuals with multiple super accounts have fallen into that position by default. Many individuals have been presented with a new superannuation fund when they change jobs.
Unless you specifically nominated your existing super fund to receive your entitlements, these funds would be deposited in the company’s default super fund. What’s more, they almost certainly would have been invested in a default investment option, again, unless you specified otherwise.
As you can imagine, once you have been through a few different jobs over the years, particularly across different industries, it becomes ‘easy’ to be left holding a number of superannuation accounts in your name, intended or otherwise.
The crucial aspect here is that you are charged fees across each of these accounts. Some of these fees, namely administration and membership fees, are duplicate fees.
Therefore, you are ultimately paying more in fees than you otherwise would through one single account. Over the long-term, this will have a profound impact on the growth of your super, and by the time of retirement, it could cost you tens of thousands.
The first place to start is to speak with a licensed professional. Here at Mintwell Capital, we can review your circumstances to establish whether it is in your best interests to hold more than one super account.
In most instances, since it is not in one’s best interests to have multiple super accounts, the easy fix is to roll over and consolidate your super into one fund. Individuals can organise this themselves via myGov, however, with a number of different superannuation providers in the market vying for attention, and insurance to consider, it can be tricky cutting through the details to identify the best super fund for you.
This is another area where we can help you assess your options, including current performance, fees, benefits and insurance of your super fund, as well as alternative products.
Nevertheless, once you make the decision to consolidate your super into the best fund for you, notify your employer, and that’s it! Enjoy the upside of lower fees from now until retirement.
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