The main benefit of consolidating your super into a single super fund is obvious – costs. The average Australian has their superannuation funds distributed amongst three providers – sometimes meaning three times the amount of account maintenance fees. Furthermore, most people little or limited knowledge about how their superannuation is being invested, what their current risk profile is and how much return they are receiving on their superannuation each year. Most Financial Advisors in Sydney consider superannuation consolidation to be crucial in superannuation investment.
Look at the following example:
John has been working for 5 years and during that time John had had 4 different jobs, each with a different super fund. Although he never worked for an employer long enough to have more than $5,000 worth of superannuation John has been paying, in some cases, over $100.00 a year simply to have his account looked after by a company. Had John consolidated that amount into the one fund he could have saved himself in excess of $300.00 per annum. If John had continued this over the long term this may have lead to John’s retirement investments being completely eaten away by fees.
A Financial Advisor can help you to consolidate your superannuation. Contact our office to arrange a free home consultation with an experienced Financial Planner.
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