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Consolidating your super should be the smoothest of blends

Consolidating your super should be the smoothest of blends. There’s no doubt Australians could potentially benefit in the long term if they consolidated their super. According to recent research, only 20 per cent of the population consolidate their super on changing jobs. Not surprisingly, there are over 18 million inactive accounts in Australia - representing a staggering $225 billion of super left behind – some of which could be yours!* So clearly, blending these multiple accounts into one has some real benefits – it could make managing your super much simpler, as well as saving you money through possibly avoiding paying multiple fees, management charges and insurance premiums - and potentially helping you build a bigger nest egg for the future.

Let’s a take a look at the potential benefits…

Susan is 38 years old and, over the last 15 years, has changed jobs five times, leaving five separate super accounts behind.

She is unaware that she is being charged an annual management fee of $52¹ for each account, as well as an annual insurance premium of $78² on each account.

Super

So every year, Susan is paying a total of $650 in fees and premiums.

By consolidating her five accounts into one, she would only be paying $130 p.a.

If she consolidated today, she could potentially save $13,000 over the next 25 years (until retirement) – a sizeable amount which could be invested together with her total super balance and potentially create more funds for her retirement.³ 

Consolidate your super with Plum and you could save.

If you choose to consolidate your super with Plum, we’ll ensure a streamlined, stress-free process with a number of features available to you, including:

• regaining your lost super;
• you may save on multiple administration fees; and
• the provision of a single snapshot of your super situation in one statement – helping  you better monitor and manage your financial situation.

By consolidating multiple funds, you may also benefit from savings on insurance premiums.

Let’s not forget, whatever money you have invested in super, no matter where it is, or with whom, it’s for your retirement! And remember, if you have multiple accounts, you may still be paying those other super funds to manage them.

What’s next?

You may have received copies of your benefit statements from other super providers, or you might not know where your super is. If this is the case, the Australian Taxation Office (ATO) holds a centralised Lost Members Register of lost superannuation fund members and retirement savings account holders.

Click here to use the SuperSeeker search functionality on the ATO website.

Once you have found copies of your statements or received information on any lost super accounts from the ATO, and you wish to transfer your super benefits into Plum, simply complete a Consolidate your superannuation benefits form and return it to Plum in the reply-paid envelope. If you have a number of accounts, simply photocopy the form.

If you require any assistance to consolidate your super, please call a Plum Member Services Consultant on 1300 55 7586 any business day, 8:00am to 6:00pm Australian Eastern Standard Time (AEST).

Important!

To ensure a speedy transfer of funds, you may need to provide adequate proof of identity with your completed form. The form provides further information of the type of identification required. If you do not provide adequate identification, the transfer(s) may be delayed as the other super fund(s) will not release your money until they can adequately identify that the funds are yours.

¹These figures have been sourced from Australian Securities and Investments Commission (ASIC) as a representation of common fees and charges and assume that the fund earnings exceed management charges.

²This example does not take into account other fees typically charged by superannuation funds such as investment management costs. Nor does it take into account any exit fees, which may be applied to the accounts being consolidated that may reduce the balance of the funds to be rolled over. Any penalties or charges to insurance cover have not been taken into account.

* Source: Consolidation of superannuation accounts, prepared for Choice, Rice Warner Actuaries, November 2008.
Before you make any decisions, you should consider all exit fees and other charges that may be applied and any changes to insurance benefits. When considering changes to your super we recommend that you seek financial advice. Savings may not be gained if you have less than $1,000 in an old superannuation fund. If so, 'Member Protection' may apply whereby fees and charges are not applied to your account balance.