While some people intentionally maintain multiple accounts for various reasons – they may receive better insurance cover through a particular account, for example – the ATO states that most people are unaware they have multiple accounts.
It can happen easily enough. Often, people lose track of their super accounts when they change jobs, move house, or just forget to update their details.
1As at 30 June 2019
What's the problem with having multiple accounts?
Well, there could be a few.
As well as more paperwork, having multiple accounts means you could be paying two sets of administration fees and insurance premiums.
This could mean your super balance is being eroded by fees.
Multiple accounts could also mean you’re missing out on the major benefits of compound interest. Albert Einstein is said to have called it the “eighth wonder of the world”, saying that “he who understands it earns it; he who doesn’t, pays it”.
At its most basic, compound interest means earning interest on interest.
For example, if you invest $1,000 and earn $100 in interest, you’ll then begin to earn interest on your new total of $1,100. Simple interest, on the other hand, is always calculated on the principal, or that original $1,000 you invested.
Having your super spread across multiple accounts with fees being deducted from each, rather than having your super as one total balance with one set of fees, means there could be less for your compound interest to work with.
How do I know if I’ve got lost super?
You can search for your super by logging in to your account.
If you’ve had a job before joining Qantas Group, it’s likely you have super in another fund.
Should I combine my super?
It’s important to do your research or seek advice about the pros and cons of combining.
Funds can no longer charge an exit fee if you close an account, but it’s worthwhile looking at any benefits, such as insurance cover, that you may lose if you close an account in a particular fund.
How do I combine my super?
Combining your super is easy. Simply log into your Qantas Super account to search and combine your super in just a couple of minutes.
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.