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Lost super is lost money for young Australians

A report has found a large amount of the younger generation have lost superannuation accounts.

More than 60 per cent of Australians under the age of 40 may have lost or forgotten about money in super funds.  This figure is much higher than for those aged between 40 and 59 who are more likely to keep track of their super.

According to the report 54.5 per cent of those with lost super found the process to recover their money too difficult and/or time consuming. This could be due to an attitude of complacency amongst the young towards super.

Figures released by the Government announced recently that overall Australians are getting the message about super.  The figures show a 14 per cent fall to $17.4 billion from the previously reported total of $20.2 billion.

Lost member accounts have also recently improved, from 5 million to 3.6 million – a reduction of 28 per cent.

It is not just young people who are losing super accounts though, the report also found that 39.3 per cent of respondents under the age of 50 might not know if they had any unclaimed super.  This same group had no plans to chase up their lost super either.

While most younger Australians are probably not thinking about making plans for their retirement yet, experts advise that super will probably be the second biggest investment these young people will have.

Rolling all funds together now may make a big impact on their super investments down the track, and may mean a significant difference to their quality of life in the future.”

The report confirmed that there many lack enthusiasm for their retirement planning across all generation, and underlined the fact that most people underestimate how much super they will need to continue to live comfortable after retirement.

There are many avenues that will help individuals track down their lost super, and roll it into one fund, or even create a SMSF, which can be very beneficial, especially for investors or trustees.

Posted on 28 August '12 by , under Business.

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What to consider when consolidating your super

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
  • Insurance policies
  • Investment options
  • Ongoing service fees
  • Performance of the funds

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
  • Proof of identity. This could include your driver's license, birth certificate or passport.
  • Your fund's superannuation product identification number (SPIN).
  • Your fund's unique superannuation identifier (USI).
  • Details of your previous fund.

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