In this episode, we discuss the importance of consolidating your super accounts and what you need to consider before taking that step. A recent report by UniSuper revealed that over four million Australians have more than one superannuation account, resulting in the unnecessary payment of double fees.
Consolidating super is important because it gives you CONTROL over your money.
Every superannuation fund comes with management fees or administration fees or both. If you have multiple accounts, you’re essentially draining your financial resources through these fees.
It’s worth noting that there is no age limit for consolidating your superannuation. Even if you’re in the pension phase and have several funds, you can still streamline them into a single account.
During this episode, I will provide you with a checklist of crucial factors to consider before consolidating your superannuation. It’s especially important to understand any insurance policy implications before consolidating, as once you’ve initiated the process, there will be no going back (and you don’t want to lose a policy you actually still need!).
We’ll also explore the advantages of consolidating your super, such as assessing which funds offer ease of access and minimal fees, and whether your chosen fund is on Australian Financial Review’s Naughty or Nice list.
Having fewer superannuation accounts also simplifies retirement planning. It’s much easier to project your retirement balance if you have a single fund compared to managing four separate ones. Most funds offer projections that estimate your balance at the age of 67, the current retirement age.
I hope this episode enlightens you about the necessary steps and considerations before consolidating your superannuation accounts.
