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One in four Australians hold multiple super funds
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12 April 2006 
 
 
The Institute of Chartered Accountants in Australia today announced the results of an independent survey that reveals 27 per cent of Australian adults hold two or more superannuation funds.  
 
The national survey of 1200 Australians held over a March 2006 weekend demonstrates that despite the Super Choice legislation that came into effect from July 2005 and the subsequent marketing the government used to announce Super Choice availability, approximately 4.3 million Australians have still not taken advantage of the legislation to consolidate their funds.  
 
“Men more than women and those of 35 to 49 years are more likely to hold multiple funds, despite being potentially only 16 years from retirement,” said Hugh Elvy, Manager for Superannuation and Financial Planning, Institute of Chartered Accountants in Australia.  
 
“Superannuation is often considered the main nest egg for retirement. Yet because employees don’t see it leave their pay packet, it is not a tangible benefit. And because generally people don’t physically have to do anything more than sign the product disclosure statement when they join a new company, many appear to put it on the back burner and do not consider the amount of money they are possibly giving away in fees by having multiple funds,” Elvy continued.  
 
According to the research only two per cent claim not to have considered consolidating their superannuation suggesting there is an overwhelming awareness to consolidate funds. Almost half of the respondents with multiple funds expect they will consolidate in the next 12 months. Australians cited laziness or haven’t got round to it as the main reason why many have not acted.  
 
Reasons given for why Australians hold multiple funds:  

  • Haven’t got round to it or laziness 35%
    •  
  • Satisfied to leave in different funds 26%
    •  
  • Change of jobs 14%
    •  
  • Don’t know how, find it too confusing 9%
    •  
  • Unable to consolidate funds 7%
    •  
  • Other 5%
    •  
  • Costs involved 4%
    •  
  • In process of consolidating 4%
    •  
  • Have Self Managed Super Fund 3%
    •  
  • Don’t know 3%
 
Total = 110% based on some respondents giving more than one answer  
 
Those that have chosen to purposely keep monies in multiple funds are more likely to be 50 years old or over with more than half of Australians satisfied to hold different funds in this age category.  
 
“The research shows that while a third of Australians hold multiple super funds because it is their prerogative or because they are unable to consolidate them, two thirds hold multiple funds because they have not regarded consolidation as a priority. More education is required to help people understand the benefits of researching consolidating super funds and the options available that offer the maximum return for their circumstances. Superannuation and retirement planning is complex whatever the age or stage in life you are at and going to see a financial advisor can help Australians look after what is needed for their retirement, today,” said Elvy.