Everyone likes finding a fiver in their jeans pocket they’d forgotten about. And it’s a rare person who likes to lose money they don’t have to.
Yet, the Productivity Commission’s 2019 report showed that over a quarter of Australians have more than one super fund. It means that 27% of people are paying fees for super accounts they might not need.
As many as 20% of people aged 26 to 30 have 3 or more super accounts. That’s 3x the fees!
According to the Productivity Commission report, an average worker with ‘many funds’ can find themselves worse off by $51,000 at retirement, just paying multiple fees and doubling up on insurance premiums over many years. That’s a decent amount you could find in your pocket at retirement!
Consolidating your super into one account with ElectricSuper can be a good idea for many people. It means you pay no admin fees with us (which is very rare across the super industry) and, being in one place, your super is easier for you to keep track of. There are no exit fees charged anymore either, which means your other fund can’t charge you to leave them.
It’s easy to reunite your super in ElectricSuper. First, make sure your employer is making contributions to your ElectricSuper account. Then you can find and roll your other super accounts straight through the secure area of the website. Or log into your MyGov account, connect to the ATO and click to roll your other super in.
Is it always a good idea to roll in?
Rolling your super from one account to another is definitely not for everyone.
Many people will find that rolling their super together into one account saves them money and makes life easier, but if rolling out of another fund means you lose insurance with them, it might not be worth it for you. This is especially the case where you have insurance in one fund that was provided without any limitations or exclusions which might not be equalled in ElectricSuper, particularly if your health is not what it once was.
If you aren’t sure what insurance you have with your other funds, check your last statement from them or give them a call.
You can see what insurance you have with us in the secure area of the website or call us on 1300 307 844 to discuss your insurance in more detail. If you need to apply for additional insurance with us, our team can help you with that too.
On top of the risk of losing valuable insurance, there are also some strategies relating to tax and estate planning that can mean having more than one account could be worthwhile for you. Your financial planner might have put strategies in place which mean it’s better for you to have more than one super account. Speak to your adviser about whether reuniting your super into ElectricSuper is right for you.
Need to talk to someone about this?
Call our Helpline on 1300 307 844 to talk through your options with regard to rolling in or speak to your financial adviser. Or, if you want more facts about rolling in, make a free appointment with our team to meet face to face and talk through the facts about your super. We can chat with you over the phone, in your office in the Adelaide CBD, at your workplace or wherever else suits you.