Superannuating changes announced in the recent Federal Budget in May could be very helpful to boost our retirement savings. They are only small changes, but could have a profound impact on our funds.
There are still lost super accounts that have not been claimed. The recent figures show that by 2020, three million people with approximately $6 billion of lost super will be present. It may pay to go through your files and pull out those old super statements and get some advice to have them rolled over to your current superannuation account.
The government also made a number of other small changes that could help boost our savings. They banned superfunds from charging exist fees for people who switched funds. They also put a 3% cap on investment fees for funds that have a low balance. We can now have six members in our self-managed superfunds which is an increase from previous years. This means that you can bring in more of your family members into the funds, which combined could give you greater investment opportunities. We know governments love to play with superannuation but these are positive changes. There are other changes, such as new rules for lifetime income stream products and rules governing insurance in super, making insurance opt-in rather than opt-out. It is important to realise that insurance in super is not free and can be eating away at the balance in your fund, especially if it is not a large one.