Everybody loves seeing big numbers in their bank account, right?
If you have worked more than one job, it’s possible you have more than one account with superannuation savings in it. This also means there is a very real chance that you are paying fees for all of them. This being the case, you should consider consolidating your superannuation.
So take our advice and check out these three reasons for consolidating your super.
Imagine hiring four cars to take on holiday with you. Each one is going to take paperwork and each one is going to cost you in fees even though you can clearly fit the whole family into the one car. And where are you even going to park all four?
Having multiple superannuation accounts is a bit similar. You’re paying fees on each one and dealing with paperwork on each one, when you only need one to put all your funds in together. Reduce the fees and paperwork down to one account to save a little on the bills.
A tip from MoneySmart, the Australian Securities and Investments Commission, suggests considering a fund that you may not have money in at the moment. You may find a completely new fund with lower fees or than any of those that you are currently invested in.
Like superannuation, a lot of people simply don’t think too much about life insurance. You might want to consider the benefits and drawbacks of signing up with a superannuation account that offers some life insurance cover as part of the deal.
With Virgin Money, automatic insurance cover on super accounts includes death and total and permanent disablement cover for members aged 15-64. You don’t need to provide any extra information or do any extra work, as this is automatically added to your account. This bonus can be tailored to suit your needs, depending on the type of insurance you prefer or need.
If you were renting four cars, performance would surely come into the equation. Choosing a superannuation fund to consolidate to takes the same consideration of performance, as this could have a large impact on your savings once it comes time to retire.
You may find that one of the funds you are already in offers superior performance to the others, or like the MoneySmart tip, you may find a totally new fund will outperform your current ones.
Look for a fund where you can keep an eye on the performance, both against current industry trends and as a long term picture. In some cases, you will be able to choose your own investment mix, or you could opt to have your super provider look after this for you, making changes based on your life stages and needs as you grow.
Do you need to consolidate your super?