Easy wins: three quick steps to saving thousands in super fees
Superannuation is the fancy word for your retirement fund. In Australia, your employer is mandated to pay 10% of your salary into your super account.
Your account is held by a super fund that invests your money on your behalf. That way, your money is making more money instead of sitting there, losing its value to inflation.
But when we first start working, most of us don’t know what super is. So we go with an employer’s recommendation. Then we move jobs, open a new account, and end up with multiple accounts. Super funds charge you various fees for their services. When you have multiple super accounts, you are paying fees on each one.
The consolidating is quick and easy
But if you put all the money into one super account, consolidate your super – voilà! You will save thousands of dollars in fees, find that one account is easier to manage (no more losing track of your super!) and compound your investment returns by pooling all your money together.
Before you consolidate your super, there are two things you should consider doing. First, compare super funds and choose the one that’s right for you – this may not be one that you already have. Second, you may want to seek advice on fees this may incur or insurance cover you may lose. Speak to your fund or a financial adviser about it.
But, ultimately, the consolidating is quick and easy.
Here’s how to do it in three steps
Log in to your myGov account (or create one).
Link your Australian Taxation Office account to myGov (click on “Link a service” and follow the instructions).
Select “Super” from the top menu. You can then find any “lost” super and consolidate all your accounts into one.
This will take you less than five minutes, but in future you will be glad you took the time.