Worth taking the time to track down old super funds
THANKS to compulsory superannuation, it's easy to accumulate a number of superannuation accounts.
This is particularly the case with people who move jobs regularly, and who don't take the time to chase their unclaimed super because the amounts may be fairly small.
It's easy to think like this, but one of the secrets of building wealth is to appreciate how small sums can grow.
This is why it is important to make the time to track down your unclaimed superannuation and bundle it into one account.
It will save you fees, and also will be easier to keep track of because you will only have one account to worry about.
However, before moving these inactive accounts check what disability and death insurance cover you may have - once the funds are consolidated this insurance will be lost.
Most super funds offer disability and death insurance cover and often a figure like $150,000 is the norm.
And, since the introduction of continuing account-based insurance cover in the late 2000's it is possible to have multiple claims.
This insurance cover is particularly important for people with disabilities or those with chronic illnesses whose working lives may be cut short. Without the extra insurance benefits, they may not have enough money to live off in their retirement.
If you are in this category, I suggest you speak to a good adviser and make sure all your insurance, both inside and outside super, is adequate for your needs.
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: email@example.com.