Australians losing out from multiple super costs
Australians are losing $6.5 billion on unnecessary costs such as fees and subscriptions, prompting Rest to encourage them to check their bank and superannuation statements.
The superannuation provider found 62 per cent were paying for services they no longer used, losing out on $3.9 billion, and the average Australian had three monthly subscriptions.
They were also losing a further $2.6 billion on excess fees and insurance for multiple superannuation accounts, which was exacerbated by the fact 21 per cent said they had never checked their superannuation account.
Rest chief executive, Vicki Doyle, said: “Many Australians are feeling overwhelmed by their current and future finances, and unfortunately this can have a negative impact on their financial health. One-in-five Aussies have never checked their bank or credit card statements, and a fifth have never checked their superannuation account. Yet checking these statements was found to be the most common way of discovering fees they weren’t aware of.”
Research found holding multiple superannuation accounts could erode savings as administration fees, insurance premiums and contributions tax add up to significant amounts over time, particularly as some people were unaware they hold more than one.
The Productivity Commission Report found a worker with two accounts over their working life would end up $51,000 worse off at retirement.
The need to consolidate multiple accounts was even more pressing since the Protecting Your Super legislation came into force on 1 July, which meant inactive accounts with less than $6,000 would be transferred to the Australian Taxation Office.
AUTHOR
Laura Dew
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
