The Commonwealth Bank has launched a super consolidation tool, addressing the 18.2 billion in lost and unclaimed super currently floating in Australia’s financial system.
The new Super Sorter tool provides consumers with an end-to-end process to consolidate super which Colonial First Sate general manager Geoff Peck said will help consumers avoid excess administration fees.
“That $18 billion number alone is staggering but the thought of the total flat fees being paid in these lost or unclaimed super accounts is alarming,” Mr Peck said.
“These fees are directly eroding the retirement savings of Australians.”
According to Mr Peck a number of superannuation funds charge a dollar based administration fee of around $1.50 per week or $78 a year.
“When you compound that across four or five accounts, you are looking at around $312 to $390 per year in administration fees alone,” he said.
“Customers need to realise they can reduce the amount of admin fees or ‘empty dollars’ they are paying by simply consolidating into one super account.”
A campaign conducted by Essential Super found one of its members aged 21 already had 12 different super funds.
Mr Peck said the real value of members finding their super is that ultimately it will form part of their retirement benefits.
“It is actually an individual’s money, they are entitled to it and they should actually have it under their control,” he said.
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