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The benefits of consolidating your super


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What makes us change? Why do we resist making improvements in our lives?

Often you know you should take some action but … but … there is always a reason not to.

Let’s take an example

You’ve had a few jobs over the years and been paid superannuation in each one. You have a number of super funds and you forget all about them until the annual statements arrive. Now you feel worried and confused. What does it all mean? Have I got them all? Is my money still safe? Am I paying too much in fees? What should I do with all this paperwork? And the worst one – did I advise all of the funds of my new address last year?

The usual option is to stuff them all in the bottom drawer and forget about it until next year... and then you go through all that confusion again!

But there is a better way and if you act now you can sort it all out so that you’ll receive only one statement – by email - each year. Here is a five-step process to help you on your way:

Step 1 – collect all the superannuation statements you can find from your “bottom drawer” or print the latest from each of your online accounts.

Step 2 – contact your financial adviser who can sort them out for you.

Step 3 – seek advice and select one superannuation fund that suits your needs.

Step 4 – sign transfer forms to get the accounts rolled over to your chosen fund.

Step 5 – relax knowing that your super is all in one place.

Seriously, superannuation is too important to ignore. Getting your super under control can save you money in fees, cut down on paperwork, allow you to get an investment strategy in place, and help you keep track of your money.

The Australian Securities and Investment Commission reports that there are billions of dollars sitting in unclaimed or “lost” superannuation accounts with thousands more accounts added to the list each month. Inactive accounts with balances of less than $6,000 are transferred into the federal government’s consolidated revenue fund, so if you think you might have some old superannuation accounts that you haven’t touched in three years, don’t hand it over the government, claim it!

Visit the ATO website at www.gov.au for more information or check your MyGov account at www.my.gov.au.

Sources:

www.ato.gov.au/superfunds; Unclaimed super – Types of unclaimed super

ASIC MoneySmart website www.moneysmart.gov.au Find Unclaimed Money

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