What would you do with an extra $77,000 by barely lifting a finger?
Well if you’re the 1 in 2 Australians who have more than one super fund then this is what you could be missing out on. We’ve all heard the boring old slogans about fees and superannuation, but over 30 years this is what consolidating the average superfund with average fees could mean for you, with the compounded benefit of utilising a lower cost product. This calculation doesn’t even take into account if you have more than two funds!
Stats. As I alluded to earlier almost 1 in 2 working Australians have more than one super fund, technically, and according to the ATO its 45%, but close enough. With the average fees on an account for a Wealth Accumulator/Builder, typically aged 25-35 being $838 per annum, consolidating, and utilising a lower cost fund product will have these fee savings work for you over 30 years, equating to a massive $77,764.01! It’s the little things that count.
On top of the average fee savings, most Australians have default Life, Disability, and Income Protection Insurance premiums “quietly” being charged inside their superfund, and in many instances doubling up on insurance benefits they may not need, or may not even be paid in the event of a claim. To me this highlight’s the critical nature of doing a sense check on your superfund(s).
You might be asking what can I do, well yes, it’s time for me to state the obvious importance of seeking professional financial advice, and the dreaded thought of needing to part with my hard earned, and pay someone to save me a few bucks each year, whilst “fixing” my insurances.
Well… its more than a few bucks! Its $77,764.01 A big difference if you ask me.
Obviously, it’s important to consider more than your superannuation in isolation, but if you’re the 1 in 2 it’s certainly a start.
If you’d like more information on superannuation, start a conversation with us today.
This article is general in nature, and is not intended to constitute advice.
Post by Luke Styles
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Futuro Financial Services Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Steve May, Luke Styles and May Wealth Pty Ltd T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Futuro Financial Services Pty Ltd ABN 30 085 870 015, Australian Financial Services Licensee, Licence number 238478. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guide and business/adviser profiles.
May Wealth Pty Ltd ABN 71 612 234 518 trading as Steve May Financial Services is a Corporate Authorised representative of Futuro Financial Services Pty Ltd ABN 30 085 870 015, Australian Financial Services Licensee, Licence number 238478.
Steve May and Luke Styles are Authorised Representative’s of Futuro Financial Services Pty Ltd ABN 30 085 870 015, Australian Financial Services Licensee, Licence number 238478