Financial Adviser
Can you have multiple superannuation accounts?
When you’re planning for retirement it’s not about asking can you have multiple superannuation funds, but rather if it’s worth having more than one for you. Because while it is possible to open multiple super accounts, you’ll likely be paying fees and charges for each one, potentially cutting into your retirement savings. Regardless of how many accounts you have open, understanding the advantages and disadvantages of having multiple superannuation funds is what will set you up for a financially stable retirement.
Why have two super funds or more?
By allocating your wealth across multiple superannuation accounts you gain the benefits of their unique investment approaches and insurance coverages. Doing so can be an effective way to increase your overall returns, as well as providing comprehensive protection tailored for what’s important to you.
Though this may sound like the obvious choice, managing multiple superannuation funds requires significantly more oversight, this kind of retirement strategy has its advantages, but only with the right knowledge or guidance behind each decision. Seeking the advice of financial experts helps you effectively manage your SMSF to gain the most benefits. Being unable to synergise your accounts would leave you paying extra fees and charges that simply wouldn’t have to be managed if you were to consolidate your super into one fund.
Holding a single super fund lets you focus your attention on consolidating your retirement into one, easy to maintain account. Monitoring and evaluating the performance of a single account can save you the hassle of multiple charges and ultimately still provide significant returns to enjoy in your later years. When you put your efforts into a single retirement fund you’re able to find one that best aligns with your interests and financial goals.
Collaborating with experienced financial advisors can help you create a retirement strategy that works for you. Sometimes you might not even realise you have multiple superannuation accounts open, and some of those could be costing you a large amount of your retirement if left as lost super.
How can I have multiple super accounts without knowing?
Significant changes, like a new job, changing your name or moving address, can sometimes disturb communication between you and your superannuation fund. Your account can be labelled ‘lost’ if they can’t contact you or haven’t received contributions for five years. Ongoing fees, charges, and insurance premiums can continue to chip away at your contributions if left unchecked. Luckily with some assistance from financial professionals, claiming lost super can be relatively easy. And once claimed, you can begin planning on whether you want to compare your super to consolidate or hold onto multiple superannuation funds.
Comparing multiple superannuation accounts
If your fund is underperforming or you have multiple superannuation accounts, comparing at least two super accounts can help you decide if they’re serving your financial goals. Under rules introduced by the government in 2021, your funds are required to notify you of their underperformance in writing. This could be caused by any combination of high fees, poor investment choices or ineffective fund management and impacts the growth of your savings. Consider switching to a stronger-performing fund if your current account is unable to match your retirement goals.
Find out if having multiple superannuation funds is right for you
When you’re unsure what the best option is for your retirement goals, seek the advice of dedicated financial advisors. Teams like the one at My Online Advisor excels in academic research and creating investment portfolios structured around expected returns. You can assess your current financial situation and identify your objectives together, then evaluate your current super fund to make sure it’s working in-line with your strategy.
Reach out to our team to create a retirement plan that will continue to work for you into your later years.
