Multiple super accounts eating into retirement savings

According to the Australian Tax Office, four in ten Australians have more than one superannuation account. And there were a total of over 6.3 million lost and ATO-held accounts with a total value of just under $18 billion.

The Productivity Commission estimates that holding just one additional super account over their working life can cost the holder as much as $51,000 by retirement age.

It doesn’t have to be this way according to Industry Fund Services, which operates a service to consolidate superannuation accounts and save members on unnecessary fees and charges, using its Eligible Rollover Fund AUSfund.  

According to IFS CEO Cath Bowtell, “Most people know they should do something about their inactive super accounts, but are often not sure where to start.” 

“In recent years, much of the red tape has been removed”, said Ms Bowtell.

“Anyone with a mygov account can use the ATO’s online service to find and combine accounts, without the need for forms and paperwork”, said Ms Bowtell.

“However, we know members perceive it as difficult to search for and consolidate any multiple super accounts, and they are happy to have the work done for them.”

That’s why 18 industry super funds have combined to consolidate certain lost and inactive accounts on behalf of their members.

This initiative follows a successful trial last year which consolidated an astonishing 50,000 accounts held by just nine industry super funds, via IFS’s Eligible Rollover Fund AUSfund. 

Industry super fund members stand to save an average of $260 a year, thanks to this initiative.

“Research undertaken with industry super fund indicates that most welcome assistance from their fund in finding and consolidating their multiple super accounts”

“It’s yet another way that the sector is proving that it always works in the best interests of its members”, said Ms Bowtell.

It’s also quick and easy to track down any inactive super accounts yourself by: 

1. searching AUSfund for your lost or inactive super
2. searching the ATO .You can see the details of your super accounts held by most super funds in Australia, consolidate your accounts and claim any lost super that may have already been sent to the ATO. Just sign up for the myGov service and link your myGov account to the ATO.

Remember to check with your superannuation provider about any fees and charges, or loss of insurance or benefits that may apply before transferring your accounts. 

The information in this article is general information only and does not take into account your personal financial situation or needs. 

Before deciding whether to move or rollover you super, you should read the relevant Product Disclosure Statements and consider whether you should speak to a financial planner.