"I am planning my retirement in 10 years and want to consolidate my multiple Super funds, can a financial adviser give me advice just in the area of Superannuation and retirement planning?"
- Question from Sando in Adelaide
Top answer provided by:
Put simply, yes. A financial adviser can give you advice on just superannuation and retirement, or indeed just one of them.
A financial adviser can give you advice on as little or as big as you require. The thing to note is that crafting advice can cost between $2,500 and $5,000. So, what really matters is that you get value for that.
For example, if all you want to know is what kind of binding death nomination to put on your account, or, something really really small – there’s bugger all chance you’ll get any value for that, however, the lion’s share of client benefits come from:
- Retirement Planning
Therefore, You’re likely to find anyone who will advise on just those – again, it’s up to you as the client, the main thing from the advisers perspective (I’d hope) is that you actually get some value.
Speaking of value, regarding consolidating your multiple super funds, bravo my friend, overdue and a decision you will not regret. There are very few reasons you wouldn’t consolidate your superannuation accounts (they include: insurance, defined benefit scheme, SMSF, or potentially capital gains), however, for most people, it’s a no brainer.
The law is more on the side of the consumer in the current day, which does a better job of protecting members from overpaying on high fees relative to small balances and holding redundant insurance you never opted in for.
Why consolidate your super
Consolidating your super can save you time and money.
Having all of your super in one account means you:
- save money by only paying one set of fees
- have less paperwork
- can keep track of your super balance more easily
Things to do before consolidating your super
Before you change out of a super fund, there are few things you need to do to make sure you don't lose important things like insurance.
Check employer contributions
Check your current accounts to see if changing funds will affect how much your employer contributes. Some employers contribute more to certain funds.
Check your insurance cover
Before you leave a fund, check to see if you have any insurance through the fund. This might be life, total and permanent disability (TPD), and/or income protection insurance.
If you change funds, you might not be able to get the same cover. Be particularly careful if you have a pre-existing medical condition or are aged 60 or over.
If you're not sure, get independent advice from a licensed financial adviser.
Tell your employer
Whether you choose a new super fund or one of your existing ones, give your employer the details they need to pay your super into your chosen account.
Which Super Fund?
It does sound like you might need to figure out what super fund you consolidate your grand wealth and future nest egg into, why not give us a call to discuss on 1300 978 737?
I hope this helps,
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