Gone are the days when super fund members had multiple accounts incurring unnecessary fees. Over the next 10 years, it’s estimated that Australians will save up to 2.8 billion in unnecessary fees and premiums thanks to super stapling.
‘Stapling’ means keeping the same super account as you move from job to job.
Previously when you changed jobs, if you didn’t nominate a super account your boss would open one for you. This would generally be their own default fund – and not necessarily the best for you.
Thanks to super stapling, it has now been established that your super account will follow you from job to job, unless you nominate that you would like to update it. According to Treasury, this will make it easier for super fund members to track their super and avoid unnecessary fees eating into their retirement funds.
According to consumer advocate Xavier O’Halloran, “Paying for duplicate super policies can cost you $50 000 over your working life.”
Check your super fund
It’s important to ensure that stapling won’t end up costing you money. If you are in a dud fund don’t stay there. Look at your options and consider moving into a better fund when you change jobs, and where necessary always seek professional advice.
What is your Total and Permanent Disability and Life Insurance Cover?
It’s also important to investigate what your Total and Permanent Disability and Life Cover is. If you work in a hazardous occupation, it may be harder for you to claim an insurance benefit when it comes to your TPD. It’s important to make sure you aren’t paying for cover that you can’t claim on. It’s also important to ensure your TPD cover provides you with an adequate financial safety net. Your life insurance may also be very important in order to protect your family. You should seek appropriate professional advice to ensure you have the right cover for your needs.