Approximately half of all working Australians has some lost superannuation.
According to federal government statistics, this represents approximately 5.8 million currently unclaimed for super accounts, with a total estimated value of $18.8 billion – that’s a lot of people and a substantial amount of money they may not realise they have *.
Moreover, by not reclaiming lost super, you may affect the amount of money available for your retirement.
If you have switched careers, changed your name or moved house in recent years, chances are you have super building up in different funds.
It is easy to lose track or even forget about multiple accounts. Therefore it is handy to have just one combined fund.
If you know where your super is, you can simply apply to have these multiple accounts consolidated into a single fund of your choice.
By doing this, you effectively create a simpler management structure, as well as avoid fees associated with juggling multiple funds.
Tracking down your lost super can take time and money, but luckily there are a number of consolidation services that can help you along the way.
A cost-effective and simple way to locate lost super is available through The Australian Taxation Office. This service, referred to as SuperSeeker, is free to use and available online 24 hours a day, seven days a week.
So, what are you waiting for? Get cracking and track down your lost super today!
* Taxation statistics 2008–09: A summary of tax returns for the 2008–09 income year and other reported tax information for the 2009–10 financial year’, published by the Australian Taxation Office, March 2011
The DIY alternative
If you are tired of paying excessive fees or are simply unimpressed with your current super fund, there are alternatives available.
The DIY super option allows you to handle and invest your money as you see fit.
Whether you decide to generate wealth through property investment, or place and leave your super in a high interest account, the choice is yours.
Just keep in mind the following principles and rules covering how you invest:
If you decide property is the way to go, or you want to have a crack at the stock market, choosing where to invest your super should involve taking informed, professional advice.
Your superannuation is essentially your retirement fund, and should not be taken lightly.
It is a requirement that any investment decision made must provide revenue for your fund.
Finally, keep in mind that DIY super funds are not the best option for every investor. Having greater control over the distribution of your super can come at a cost if you don’t know what you are doing.
The best way to decide whether a DIY super fund is the best option for you is to get professional advice.
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This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the articles is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).