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If you don’t consolidate your super accounts, you’ll hate yourself later

A lot of Australians forget that their super is their asset and can be used in retirement, however we get our super statements and put them in a shoe box or file them away because we can’t access the money now. If you have changed jobs recently, worked on short term contracts, or worked on temporary jobs you may have multiple super accounts or lost track of some of your super over the years.

Case Study- Sonya from Greensborough

Sonya has come from overseas and when she arrived had multiple jobs before settling with a major financial institution. She has been in Australia for nearly 15 years now. She has lost track of some of her accounts and also has had some employers contribute to super funds she is unaware of. As she is in her thirties, retirement has become more of a focus as she realises she won’t work forever.  Setting up her finances is not her forte so she now needs the assistance of an experienced financial planner from Lindale Insurances.

Sonya is not alone and if you have combined balances exceeding $80,000, you can phone us to get assistance now. Below is further information to assist in this process

Why consolidate your superannuation?

One of the biggest advantages as indicated by our home page banner is the potential benefits in terms of the reduction of fees (e.g. administration fees). If your balance is high, then the portion of fees is lower. However if you are like most people who have 5 plus superannuation funds during their lifetime on multiple accounts the balances will be smaller and the portion related to fees eats into your return. 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.

A lot of people hate paperwork and with a Lindale Insurances Financial Planner, we take care of all the paperwork for you. As a result, you will greatly reduce your paperwork. This will make it easier for you to keep on top of your super and understand exactly how it’s performing.

By consolidating, you give a chance for your super to grow and produce a better result for you. This is because:

  • We will help you put the superannuation balance into a  fund based on your risk appetite
  • With the power of compounding returns, the money you save in fees could really help grow your super balance. It also reduces the likelihood of you ending up with lost super in the long run
  • As we know the laws and regulations related to superannuation have changed constantly, we will support and assist you so you don’t exceed any concessional caps, plan for your tax return effectively/ efficiently and stay on top of any changes.

Here is a practice example of why you should consider consolidating

With our assistance, consolidating your super could potentially add thousands to your super balance at retirement:

  • Mary has one super fund with a balance of $12,000.
  •       Mark has 6 super funds, each with $2,000.
  • They both pay an annual administration fee of $5 per month for each fund.
  • Over 30 years, Mary’s super balance grows to $118, 963.00 compared to Mark’s balance of just $81846.00

A difference of $37,117 over 30 years, simply because Mary decided to consolidate. Please note, we will never suggest you consolidate, if it is not in your best interest but consolidation will give you peace of mind.

Will I be charged a fee to combine my accounts?

Some super funds may have an exit or withdrawal fee for moving your money to other superannuation accounts. Some are very slow in consolidating. We are able to assess your superannuation accounts and determine whether it is in your best interest to move superannuation accounts and the best superannuation for you. We have 380 options for consolidation and provide you choice regardless of which option you choose.

In our experience (and the experience of Sonya above), we find that insurance is offered as a default in most new super funds.  It doesn’t take into account other insurances in place or if it is appropriate for the individual. Your decision to move out of a super fund could impact the level of insurance cover or other benefits you had with that fund. Our qualified financial planners will check the level of cover and suitability of insurance premiums and make sure you don’t miss out on any benefits by moving.

How do you search for any missing superannuation?

We will do it for you. We cannot search for your lost super without your consent. Once we have it, we will use your name and Tax File Number to search the ATO SuperMatch database for accounts that match your details. The SuperMatch database currently holds records of:

  • Active funds who have received a contribution for you in the past 2 years
  • Super fund accounts that have been recorded on the ATO lost member register
  • Lost super money held by the ATO.

Once we know the outcome, we will book a time to advise you of which super is best based on your situation and will help you complete the necessary actions.

Your Next Steps

In summary, we will make sure that you are not impacted in a negative way by consolidating. We will check the following:

  • Are there any termination fees?
  • Will you be impacted from an insurance perspective by consolidating?
  • Have you let your employer know you have consolidated? Make sure they know where to pay your super and how to correctly identify you to the fund.

How do I consolidate my super?

You call us on (03) 9848 5933 and we will take care of everything from start to finish. We need a little bit of your time to make sure we address all of your needs. We are holistic advisers. As a result, we will look at the whole needs and situation and not just your superannuation in our assessment of any strategies.

*Our Assumptive example is  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.

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