I’ve been living in my apartment for 2 years now. And still I am receiving other people’s mail. Bank statements, superannuation statements, promotional material to name a few.
Why do some people not mind that their stuff gets left behind when they move on? Are they now tracking it online? I doubt it. I can certainly appreciate that sometimes when you leave one place you want to start afresh. To my mind though, there are certain items that remain important no matter where you go.
Here are my top 5 reasons why you should find your lost super.
1. It’s your money.
Don’t you want it? Sure, you can’t access it today. But when you do retire, you’ll know where it is and you’ll know how much more it’s worth. Because you took the time to look after it and nuture it and take care of what’s yours.
2. Save on fees.
Why pay two or three or four lots of fees to a product provider? This just erodes your savings and means you’ll have less later on. Generally, the larger your super account balance the smaller the proportion of fees you’re charged for that account. So if you’re paying fees on multiple accounts with smaller balances, you can reduce the amount of fees you pay by reducing the number of super funds you have and increasing the balance of your chosen fund at the same time. Less fees means more money in your pocket.
3. Less paperwork.
There are only a few people I know who don’t mind paperwork (yes, I’m one of them!). Having one super account means you only have one set of paperwork to manage. This could make it easier to keep on top of your super and understand exactly how it’s performing.
4. Power to grow.
Consolidating your super is not just about saving money in fees, it’s also about giving your super the potential to really grow. With the power of compounding returns, the money you save in fees could really help grow your super balance.
5. The right insurance.
You likely have some insurance cover in your super fund. This was probably automatically accepted when you joined the fund. Do you know how much? Do you know if it’s enough or even too much? Before you consolidate, it’s important to know how much cover is right for you so you can get the right cover in place before you move your super and then save even more money because you’re only paying for the cover you need.
Jenny has one super fund with a balance of $10,000.
George has 5 super funds, each with $2,000.
They both pay an annual administration fee of $5 per month for each fund.
Over 30 years, Jenny's super balance grows to $93,830 compared to George's balance of just $66,642.
A difference of $27,188 over 30 years, simply because Jenny decided to consolidate.
For our easy advice and consolidation service, call us today on 02 9417 6011.
Example based on annual returns of 8%p.a. reinvested. No allowances have been made for inflation or taxation. This assumes that the only fees paid by the member are administration fees of $60p.a. and doesn't take into consideration any additional contributions made to any funds.
In : Superannuation
Tags: "lost super" money super savings "less paperwork" "more money" "more savings"