Get your super together and save

If you have had different jobs with different employers over your working career you will probably have superannuation accounts in many different funds. Apart from the time it takes to keep track of these accounts, there are three more serious concerns of which you should be aware.

Investment Strategy
Choosing the right investments for your situation is critical to maximising your retirement nest egg. Super is for the long term and just 1% extra in returns every year can make a significant difference. For example, if you were earning $70,000 per annum and your fund was receiving only the 9.5%pa superannuation guarantee contributions, you could have $288,000  after 20 years if the fund consistently earned 7%pa. If it earned just 1%pa more, you could have $326,000 , over $38,000 more!

Reports and Fees
More than one fund means you receive multiple annual reports and statements either by post or to your inbox. Apart from being a nuisance, the big danger is that your super will be eroded by fees.

Lost Billions
An inactive account is one that has not been accessed or contributed to in the past 12 months and the super fund cannot locate the account owner. Superannuation held in inactive accounts with balances less than $6,000 is transferred into the federal government’s consolidated revenue account. As there are billions of dollars held in inactive accounts, this is a huge windfall for the government, but does any of this money belong to you?
You can easily find out if you have any lost super by using your MyGov account and linking to the ATO. If there is lost super showing, follow the instructions on the MyGov service to claim it. If you don’t have a MyGov account you can download a form from and submit it to instigate a search. Or you can use any of the private services available to locate your super.

When preparing to consolidate your super funds, make sure you look at any insurance that might be included in these funds. Don’t leave yourself vulnerable without sufficient cover. Talk to an AGS Financial Planner about this before you close any accounts.

zero initial investment, $6,650 pa regular contribution over 20 years [a flat 9.5% of $70k as SG], with a 7% rate of return;

Same assumptions except 8% pa rate of return.

All calculations do not take into account inflation, tax or fees/charges.

Published : 15 Jan 2018

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