INFOGRAPHIC: According to the most recent statistics reported by the Australian Taxation Office (ATO), Australians are improving when it comes to managing their super accounts.
Statistics show that the number of Aussies who have consolidated their super accounts has steadily increased in the past five years.
As at the financial year (FY) ending 30 June 2018, about 64 per cent of the population held only one super account. This translates to over 10 million Aussies whose retirement savings are held in one super.
This is a 7 per cent increase compared with FY 2014-15 when 43 per cent of the population held multiple super accounts.
Number of super accounts held
While 64 per cent of Aussies only hold their super in one account or have consolidated it, 23 per cent hold two accounts.
Those who hold three and four accounts make up 8 per cent and 3 per cent of the population, respectively.
The remaining 2 per cent are made up of Aussies with five and six or more accounts.
Having multiple super accounts can slow down the growth of your retirement savings, so it’s important to choose one fund that matches your retirement objectives.
Furthermore, having multiple accounts can drive up your expenses because you pay management fees and other charges for each one, regardless of their performance.
Super and gender
The ATO report revealed that there is a higher percentage of males that have multiple super accounts compared with females.
Of the individuals with one account, 51 per cent are males and 49 per cent are females. Among those with two accounts, 52 per cent are males and 48 per cent are females.
The number only goes up from here. Males reportedly make up 54 per cent of account holders with three accounts; 55 per cent, four accounts; 57 per cent, five accounts; and 60 per cent, six or more accounts.
Number of super accounts by age
The ATO also revealed that majority of the multiple account holders are aged 36 to 55.
Fifty-six per cent of Aussies within the range of 41 to 45 years old and 46 to 50 years old hold one account.
A majority of younger Aussies aged 19-25 and 18 years and under only have one account. However, it’s most likely that fewer work experiences or jobs is the main reason for this.
The majority of Aussies who are close to or are in retirement also hold one account, but there are still a few with two or more accounts.
For instance, while 61 per cent of 56 to 61-year-olds have one account, there are still 26 per cent with two accounts and 13 per cent with three or more.
Among the 61 to 65-year-olds, 67 per cent hold one account, while 23 per cent have two and 10 per cent own three or more accounts.
Super accounts by region
Among the Australian states and territories, Tasmanians and Victorians equally have the highest percentage of Aussies holding only one account.
Both states reported that 66 per cent of their population with superannuation only hold one account, while 23 per cent have two accounts and 11 per cent have three or more accounts.
The Northern Territory reported the lowest levels of consolidation, with 57 per cent holding one account, 26 per cent with two and 17 per cent with three or more accounts.
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