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.
