Young Aussies still failing with multiple super accounts
Younger superannuants are still failing to consolidate their multiple super accounts and risk eroding their super balances through unnecessary fees, says the Association of Superannuation Funds of Australia.
Research conducted by ASFA has revealed that more than 60 per cent of young Australians have multiple super accounts due to lethargy in consolidating them and 30 per cent report trouble locating old accounts, despite ready online access available via MyGov.
According to the results, more than 30 per cent of young people aged 18-25 have more than one super account, and 10 per cent of them have three or more accounts. For those aged 26–30, nearly 20 per cent have three or more accounts.
However, ASFA chief executive Martin Fahy said not all young people are disinterested or disengaged in super, with 6 per cent of Australians aged under 29 checking their super balance daily.
“It’s a habit the super industry is keen to foster to help young people set themselves up for retirement,” Mr Fahy said.
ASFA found around a quarter of Australians aged 15–19 have a super account as do around 75 per cent of those aged 20–24.
While the average balances are not large, they are substantial compared to what most young people have in their bank accounts.
Based on the latest available data from the Australian Bureau of Statistics, ASFA said the average super balance in 2014 for those aged 20–24 is around $5,000, rising to more than $16,000 for those aged 25–29.