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Consolidation to save members $250m a year: ASFA
New research on the impact of superannuation account consolidation has found the elimination of six million unnecessary accounts could save members around $250 million a year in fees.
The Association of Superannuation Funds of Australia (ASFA) has released a new research paper that explores the potential impacts of auto-consolidation of unnecessary accounts.
The paper found that although many people have good reason to hold more than one superannuation account, there are numerous instances where this is not the case.
ASFA estimates there are currently more than 14 million Australians holding superannuation accounts, with an average of just over two accounts per person.
But it seems that work to encourage members to consolidate their accounts themselves has paid off, since the growth of new accounts has dropped off from 5 per cent per year a decade ago, to about 0.6 per cent today.
ASFA chief executive Pauline Vamos said her organisation had seen over the past 12 months that measures relating to temporary residents and unclaimed super have reduced the number of accounts by some 3.6 million.
“We believe that trend will continue downwards with the Stronger Super changes,” she said.
AUTHOR
Ashleigh McIntyre
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