Consolidating can save you thousands of dollars. According to new figures, 45% of working Australians have more than one superannuation account. The ATO is encouraging these people to consider consolidating their superannuation into one preferred account (this may not be your biggest account, but rather the account with the lowest fees or the better performing fund).
Doing so, may leave you with thousands of dollars more for your retirement. The Australian Prudential Regulation Authority says that the median figure for fees and charges paid by Australians for a low cost superannuation account is $532 per year (even more for higher-end superannuation funds).
ATO Assistant Commissioner of Superannuation, John Shepherd says:
Consolidating your super into one preferred account is easier than ever and now is the perfect opportunity to make a fresh start with your finances.
Australians are encouraged to use the improved myGov online portal to check their super accounts and consolidate multiple accounts. myGov has made it so much easier for people to combine their accounts in one place. Users can see all their accounts and consolidate them with a few clicks. Having one account minimises fees and can help maximise your retirement savings. If you’ve tried to combine your super accounts before and found it difficult to do, give it another go. We have simplified the process since our online services were first launched.
We’ve recently seen a significant increase in Australians merging their super into one preferred account; with more than 265 000 accounts with balances totaling $1.13 billion consolidated in the six months to December 2014. In one case, 17 accounts were consolidated. This is a rise of 400% from the six months to December 2013 when 52 000 accounts worth more than $270 million were consolidated.
Consolidating your superannuation is a simple two-step process:
- Create a myGov account and then link the ATO to your account. If you already have a myGov account, just log in and click on the ATO.
- Go to the Super tab.
Having done this, you can then do any of the following:
- See details of all your super accounts, including any you have forgotten about
- See details of any super the ATO is holding on your behalf
- Transfer your super online
- Combine multiple super accounts