Retirement
The caveat to having 2 super accounts
With a huge public push for individuals to consolidate their super, one CEO has gone against the grain to acknowledge that two superannuation accounts might actually be suitable for some.
The caveat to having 2 super accounts
With a huge public push for individuals to consolidate their super, one CEO has gone against the grain to acknowledge that two superannuation accounts might actually be suitable for some.
The CEO of Rest, Vicki Doyle, has acknowledged the fact that while Australians are losing $2.6 billion on superannuation fees from the holding of multiple accounts, the holding of two superannuations could still provide insurance benefits to particular investors.
Different superannuation accounts do not have the same underlying insurance and could mean that some investors might benefit from multiple accounts, she outlined.
“Some people will keep multiple super funds because they want more insurance to cover. For example, if they pass away and have a huge mortgage debt,” Ms Doyle said.
In most instances, however, Australians are much better off with just one account, the CEO did stress.
She advocated for super fund members to ensure that they understand their benefits despite the complexity of insurance.
“When you move to a new super fund, sometimes the insurance is different,” she said.
“So, the insurance element in super, while it can seem a little bit complicated, is incredibly important to try and understand,” Ms Doyle elaborated.
Before switching or combining superannuation, Ms Doyle said that she “highly recommends” that investors understand the impacts of their new insurance coverage compared with their existing coverage.
About the author
About the author
Superannuation
Early super payments slow to under $200m
Less than $200 million was paid out of the super system in the second week of October, as the popularity of the government’s early release scheme looks to be slowing further following the release of...Read more
Superannuation
‘Impressive’ super erases most COVID-19 losses
Australian superannuation has erased most of the COVID-19 downturn following a positive September quarter, new research has shown. ...Read more
Superannuation
1.2m Australians lose in tax offset lag
The Treasury’s latest tax cuts will see more than 1.2 million low-income earners paying a higher rate of tax on their superannuation contributions, with funds arguing changing the tax rate could add...Read more
Superannuation
Could you be stuck in a poor-performing fund?
The government’s superannuation reforms to eliminate multiple superannuation accounts could have unintended consequences, with older Australians locked into financial decisions made by their teenage...Read more
Superannuation
Big super pushes for gender parity
One of Australia’s largest superannuation funds has launched an investor-led initiative that will see women fill at least 40 per cent of the executive roles in the ASX 200 over the next decade. ...Read more
Superannuation
Why it is ‘cruel’ and ‘embarrassing’ not to raise the SG
Australian workers, who are bearing the brunt of the public decision to shut down the economy, could be “cruelly rewarded” for their sacrifice with a less dignified retirement, industry experts ...Read more
Superannuation
A short-term fix: Lack of strategy behind super withdrawals
A large proportion of Australians who have withdrawn their super early as a result of financial hardship have not even stopped to consider how it will impact their savings at retirement. ...Read more
Superannuation
3 best and worst super funds revealed
Members are paying almost $35 billion in superannuation fees every year, according to a new report which has named the best and worst-performing funds. ...Read more
Superannuation
Early super payments slow to under $200m
Less than $200 million was paid out of the super system in the second week of October, as the popularity of the government’s early release scheme looks to be slowing further following the release of...Read more
Superannuation
‘Impressive’ super erases most COVID-19 losses
Australian superannuation has erased most of the COVID-19 downturn following a positive September quarter, new research has shown. ...Read more
Superannuation
1.2m Australians lose in tax offset lag
The Treasury’s latest tax cuts will see more than 1.2 million low-income earners paying a higher rate of tax on their superannuation contributions, with funds arguing changing the tax rate could add...Read more
Superannuation
Could you be stuck in a poor-performing fund?
The government’s superannuation reforms to eliminate multiple superannuation accounts could have unintended consequences, with older Australians locked into financial decisions made by their teenage...Read more
Superannuation
Big super pushes for gender parity
One of Australia’s largest superannuation funds has launched an investor-led initiative that will see women fill at least 40 per cent of the executive roles in the ASX 200 over the next decade. ...Read more
Superannuation
Why it is ‘cruel’ and ‘embarrassing’ not to raise the SG
Australian workers, who are bearing the brunt of the public decision to shut down the economy, could be “cruelly rewarded” for their sacrifice with a less dignified retirement, industry experts ...Read more
Superannuation
A short-term fix: Lack of strategy behind super withdrawals
A large proportion of Australians who have withdrawn their super early as a result of financial hardship have not even stopped to consider how it will impact their savings at retirement. ...Read more
Superannuation
3 best and worst super funds revealed
Members are paying almost $35 billion in superannuation fees every year, according to a new report which has named the best and worst-performing funds. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
