Many Australians don't know they have Multiple Super Accounts (Shocking News)

Many Australians have multiple super accounts. And this is terrible because they are just donating money to superannuation. And one of the best things you can do to maximize your money is to consolidate your super account.

The Productivity Commission suggests that about 1.3 of all accounts - about 10 million accounts are unintentional multiple accounts. And that's actually costing Australians about 2.6 billion dollars in fees which is crazy.

The good news is that it's becoming increasingly easy to set all of your superannuation in one spot and that's through the MyGov website.

How to Check any Lost Super Accounts

To check if you have any lost super accounts, go to the MyGov website and make sure it's linked to the ATO.

Click on the Super Drop Down and choose "Find Details."

With all the multiple Super Funds that people have, what are the Australians paying in terms of fees?

This is actually one of the important things to consider when it comes to consolidating your super - what your insurance needs are?

And the plausible answer to this is that depending on the stage of life you're at, you might find that you have superannuation that's beyond your requirements but even more concerning than that is what the Productivity Commission talks about as long term insurance.

So these are insurances that you have that you can never claim on, but you are actually paying premiums for, and that's eroding your superannuation balance. So there are things like income protection insurance, and if you have multiple policies, you can't claim on each one because you can only claim on it once.

That insurance will disappear as soon as you take your money out. Such examples like these are what you need to understand while consolidating your super.

How to Consolidate Super

If you do decide that you want to consolidate your lost superannuation, first and most importantly, compare your fund's performance and fees, so you know which one to login into.

You also have the option to opt for the services of online super search and consolidation services. The advantage of opting for such services is that they will do all the work for you so you can save time and effort finding and consolidating your super.

All you need to do is provide these services with your personal information through the form they will provide you online – usually through their website. Don't forget to include your TFN #. Once you've opted in, they will take care of the rest and find and consolidate your super in no time.

Consolidating Super Process and Considerations

The process of consolidating super may vary from one fund to another, but the general practice is to fill out or request a consolidation and transfer your benefits form. Requirements usually just involve your ID.

There are certain considerations you need to keep in mind when consolidating your super.

Again, you need to consider the following when consolidating your super:

• Be sure that your present employer can make fund contributions towards your account

• Make sure that compulsory superannuation guarantee payments are directed

• Be sure that any strategies you may have set in place while claiming tax benefits are finished before rolling over.

Significant benefits of consolidating your super

There are certain benefits towards consolidating your superannuation, and these include:

• Prevents unnecessary fees and charges from eroding your super money.

• The deposit amounts you put into super will be accumulated into a single fund, avoiding lost or unclaimed super money that could have been added to your super account.

• With only one super account, your money would be performing better as you can manage and monitor it better.

• Minimizes investment risks your super fund may be exposed to.

• Optimized your taxes and prevented extra taxes from being charged.

When you shouldn't consolidate super

Here are instances when you shouldn't consolidate your super:

• When you have major exist fees from a certain fund

• If your insurance coverage in a certain fund will be significantly affected or terminated

• If your employer happens to be rebating insurance premiums or fees over your fun

• If the super fund's investment strategy is very risky for you

Final Words

Finding and consolidating your super is more important than most people think. In fact, you must consider it as one of your top priorities when it comes to your super.

If you've consolidated your super, then you've really enhanced your retirement prospects. By consolidating your super into one fund with lower fees, you've really increased the amount of your super once you've stopped working.

More than that, it really enhanced your engagement with super by giving you more control. And that's essential if you're going to make a move like putting a little bit more involuntary contributions. Even something like just $25 a week can make a massive difference once you stop working.