Multiple Super Accounts: Which one should you keep?

TL;DR

Learn how to choose between multiple superannuation policies based on factors like fees, investment flexibility, administration support, technology, and insurance considerations.

Transcript

foreign and I'm a financial advisor with Consortium private wealth in today's video we're going to be looking at superannuation and in particular for those clients or or members who have running two policies at the moment and they're trying to decide which policy to keep moving forward now there are many reasons why an individual might have multipl... Read More

Key Insights

• 🥺 Changing jobs or receiving refundable service fees can lead to multiple superannuation policies.
• 🍧 Having multiple superannuation accounts is costly, time-consuming, and confusing, with few exceptions.
• 🧑‍🏭 Advisors consider factors like fees, investment flexibility, administration support, technology, and insurance coverage when helping clients choose between policies.
• 🍧 Retirement transition scenarios may involve having multiple accounts, such as accumulation and pension phase funds.
• 🤱 Comparing fees is essential, especially considering exit fees when transferring funds.
• 🎮 Investment options should align with the client's preferences and level of control desired.
• ❓ Efficient administration practices and quality support are important for smooth account management.

Questions & Answers

Q: Why do some individuals end up with multiple superannuation policies?

There are various reasons, including changing jobs, as employers may set up a new policy on behalf of the employee. Additionally, some clients have received refundable service fees due to the royal commission into the Banking and Financial advice industry.

Q: Is it beneficial to have multiple superannuation funds?

Generally, having multiple accounts is not recommended as it is costly, time-consuming, and confusing. However, in retirement transition scenarios, where individuals work part-time and have an accumulation phase and pension phase account, it can be beneficial.

Q: What factors should be considered when choosing between superannuation policies?

Financial advisors consider fees, investment flexibility, administration support, technology, and insurance. Comparing fees, assessing investment options, considering efficient administration practices, evaluating technology features, and reviewing insurance coverage are important considerations.

Q: What should I do about insurance when choosing a superannuation policy?

Closing an account means losing the insurance coverage associated with it. It is essential to assess the insurance coverage offered by each policy and consider retaining the account with the desired coverage or applying for new insurance with the new provider.

Summary & Key Takeaways

• Many individuals may have multiple superannuation funds due to changing jobs or receiving refundable service fees.

• Having multiple accounts is costly, time-consuming, and confusing, except in specific retirement transition scenarios.

• Financial advisors consider factors such as fees, investment flexibility, administration support, technology, and insurance when helping clients choose between policies.