When it comes to growing your super savings, one of the first things you should do is track down your accounts and consolidate them.
Most of us have a few accounts floating around, forgotten about as we make various career moves or change industries. But these long-lost accounts are costing you money, hindering your chances of saving enough for your retirement.
Fiona Reynolds, the CEO of the Australian Institute of Superannuation Trustees (AIST), says the average person has about three super funds, which brings three separate sets of admin fees.
“Basically, they’re just eroding their savings,” says Reynolds. “If you have a number of accounts, ring the fund and consolidate.”
To make consolidating your super as stress-free and as quick as possible, Pauline Vamos, the chief executive of the Association of Superannuation Funds of Australia, offers the following tips:
- If you know where your super accounts are, compare the fees, benefits and performance of each fund and then decide which one is best for you.
- If you don’t know where all your super accounts are, check out the ATO’s online service, Superseeker, which will help you track them down.
- Check whether your fund(s) will allow you to transfer your super elsewhere and be aware of the exit fees.
- Many super funds now have online systems for facilitating consolidation or forms that can be downloaded, so see what your fund offers.
- Some funds now also offer a consolidation service and if you choose to stay with them, they will do all the transfer paperwork and even help you track down any lost super.