Younger Australians could be missing out on thousands of dollars in retirement savings, because they have not ‘got around’ to consolidating accounts or finding their lost super, according to new research released by the Association of Superannuation Funds of Australia (ASFA) today.
Almost half of Generation Y, and around forty per cent of Generation X surveyed said they had not ‘got around’ to consolidating their accounts yet, with one in five reporting they don't know how to do so. The survey also found one in five of Generation X/Y do not know if they have lost or unclaimed super, with over sixty per cent reporting they had not heard of the Australian Tax Office's (ATO's) online SuperSeeker service.
ASFA CEO Ms Pauline Vamos says the younger you are, the more you will benefit from making small changes to the way you manage your super.
“While retirement may seem like a long way off for younger people, they are the ones who stand to benefit most from sorting their superannuation savings. With the effect of compound interest, every dollar you put into your superannuation before age 35 will be 7 extra dollars you will have in retirement. This means every dollar you save on unnecessary fees, or every dollar of lost super you find, is worth seven times more to your retirement savings.
“The perception for many people is that the process of finding lost super or consolidating accounts is fraught with difficulties. However, the ATO has made it easier than ever before to find your lost super or to move your super into one account. By using tools like the ATO Online Services and SuperSeeker, just a few clicks could make you thousands of dollars richer in retirement.
“Every day your super stays lost, or every day you pay fees on an unnecessary account, is a day you are losing valuable retirement money. This is why this Easter break, we are encouraging those in Generation X and Y to spend one hour sorting out their superannuation accounts, to help boost their retirement savings.”
ASFA has released two new checklists via the independent Super Guru website that act as simple tools to help people sort out their super accounts. The first is a checklist of things to think about before you consolidate your super accounts, and includes information to help people choose which fund is best suited to their needs. The second is a step-by-step guide through the process of consolidating accounts and finding lost super.
“Using these simple checklists can help make the process simpler, easier and more efficient. So this Easter weekend, put the chocolate eggs aside for one hour and spend the time sorting out your super. Making simple changes could add thousands to your savings,” Ms Vamos concluded.
The survey results can be accessed here.
For further information, please contact:
Lisa Chikarovski, Media Manager, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia's superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.