The Association of Superannuation Funds of Australia (ASFA) has estimated the consolidation of retirement savings accounts that are not required will save approximately $250 million per year in fees.
This estimate comes out of an analysis ASFA performed as part of its new research paper, Multiple accounts and superannuation: the likely impact of auto-consolidation.
“Having only one super account compared to say two or three can save each fund member concerned $100 or more a year in fees,” ASFA chief executive Pauline Vamos said.
In the paper, the industry association predicts that the overall effect of the auto-consolidation process will reduce the number of superannuation accounts by anywhere between 5 and 6 million.
According to ASFA, a total of 14 million Australians hold superannuation accounts with each person holding a little over two accounts each.
However, there is now evidence the number of funds is decreasing.
“We have seen over the past 12 months that measures relating to temporary residents and unclaimed super, have helped reduce the number of superannuation accounts by some 3.6 million,” Vamos said.
“Importantly, growth in the number of accounts has dropped off from about five per cent a year a decade ago, to about 0.6 per cent currently,” she added.
“We believe that this trend will continue downwards with the Stronger Super changes.”
