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Your life moves fast – is your super keeping pace?

Sarah Stowe

Australians are changing jobs and moving around more frequently than ever before, but is our superannuation keeping pace?
According to the latest Australian Bureau of Statistics (ABS) data, only a minority of workers stick with the same employer for 10 years or more. The long stayers are mainly managers (38%), professionals (29%) and clerical workers (28%).
ABS figures also indicate that nearly half of all Australians moved house in the last five years, with 84% of renters moving.
Many employees sign up with the super fund recommended by their new employer and workers changing jobs lose track of their super savings or forget to take their super with them.  The amount of lost super has blown out to a massive $14 billion, including $6 billion sitting in super funds unable to locate the owners. That’s a lot of cash waiting to find a home.
While the Australian Taxation Office (ATO) has launched its SuperSeeker service to help locate lost super savings, a surefire method of ensuring your super moves with you throughout your career is taking advantage of ‘super portability’.

Portable super

Super portability is the ability to transfer previous super benefits into a fund of your choice. Combining all your previous super funds into the one account gives you greater control over your super, making it easier to keep track of and minimise the amount of fees you pay when you have multiple super funds.
For members of EISS Super, a low cost, not-for-profit fund, changing jobs does not mean being forced to switch funds. Instead, EISS members can ask their new employer to pay super contributions into their EISS Super account by completing a simple choice form. While no one likes filling out forms, this process could save you money in super fees, as well as ensuring your super does not add to the billions of dollars worth of “lost” super.
For Australians, super portability means greater freedom of choice over super savings, as well as ensuring your super fund moves with you throughout your career. Because unless you work in an office or are the boss, it’s unlikely you will be staying with your job for the rest of your career.
Before you combine your super funds there are some things you should check, including:
  • whether there are any termination fees;
  • whether you can get the same level of insurance in your chosen fund; and
  • that your employer can contribute to your chosen fund.
Taking control of your super can make a big difference to your future lifestyle. The power is in your hands – click here for more information.
References
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6209.0
http://propertyupdate.com.au/how-often-do-we-move-and-some-other-property-investment-stats/
https://www.ato.gov.au/Media-centre/Media-releases/New-statistics-reveal-$14-billion-in-lost-super/
The information in this document is current as at the date of issue, is of a general nature only and has been prepared without taking account of your objectives, financial situation or needs. Before you act on the information contained in this document or make an investment decision about whether to acquire an EISS product, consider its appropriateness having regard to your objectives, financial situation and needs and read the relevant Product Disclosure Statement which is available at eisuper.com.au or by contacting Member Services on 1300 369 901. This document is issued by Energy Industries Superannuation Scheme Pty Limited ABN 72 077 947 285 (EISS), RSE Licensee L0001373 and AFS Licence 441877 as trustee for Energy Industries Superannuation Scheme Pool A ABN 22 277 243 559, RSE R1004861 – Pool B ABN 64 322 090 181, RSE R1004878 (the Scheme). Throughout this document EISS is referred to as ‘EISS’, ‘we’, ‘us’ or ‘our’.