Financial Planit Christmas 2013 Newsletter

Lost Super – Think before you consolidate!

In the coming months it’s possible that you may be contacted by a financial institution about locating superannuation monies that you may have forgotten you had or never even knew existed. This is part of the Federal Government’s new initiative geared towards reuniting Australians with any lost superannuation and reducing what currently stands at over $18 billion in unclaimed superannuation monies.

With information it collects from super providers, the ATO is making it easier for you to locate your lost and unclaimed super and has recently improved its popular SuperSeeker service, which now allows you to search for any of your active, lost and unclaimed superannuation. Superannuation providers can also search the ATO’s databases for any superannuation that belongs to you, with your consent. As a result, many super providers are actively contacting members with offers to locate their other super and offering incentives to consolidate these amounts into their fund.

Things to consider if you’re contacted by a super fund

If you’re contacted by a super provider about finding and consolidating your superannuation, there are some things to consider before taking any action and making any decisions. It’s important to ensure you’ve considered the possible effects on your personal financial situation and any potential long term ramifications. A decision you make today may make have further impact years from now.

1. Have you provided consent to search for your super? Super providers must have your consent to search the ATO’s databases for your active, lost or unclaimed super.

2. Which super fund suits you best? Before consolidating your super, you need to consider the costs, features and benefits of all your accounts to decide which one is best for your needs.

3. Exit Fees – It’s also a good idea to check whether any withdrawal or termination fees apply from any of your funds and beware of any investment or taxation implications.

4. Insurance cover – If you decide to roll over from one super fund to another, the insurance cover provided by each fund is an important consideration. You need to weigh up whether you need it, will be replacing it, the costs and new application forms involved, medical examinations and premium changes or even if you will be granted cover.

5. Speak to your financial adviser – Before you make any decisions, contact us. We can review your situation and help you:

a. assess the effects of any consolidation opportunities

b. explain what may happen and discuss your options with you

c. assist you in balancing your short-term goals with your long-term retirement needs.

Some things which a super provider that isn’t familiar with your personal situation won’t be able to consider are:

    • Will this change affect your pension entitlement?
    • Will it affect any long term strategies that have been planned or already implemented?

If you have any questions about consolidating your superannuation or about anything else to do with your financial situation, please call Anthony Buckley as he is always happy to assist. As always, we are committed to your long term welfare and to ensuring that all decisions made are in your best financial interests.


Christmas Opening Hours

Please note our office will be closing from C.O.B. on the Friday 20 December 2013 and re-opening Monday 6 January 2014.


Best wishes for a wonderful and safe Christmas!


GENERAL DISCLAIMER: This is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial planner as to whether this information is appropriate to your needs, financial situation and investment objectives. Whilst every care has been taken in the preparation of this publication, Capstone Financial Planning Pty Ltd, its directors, authorised representatives, authors, consultants, editors and any persons involved in the preparation and distribution of this publication, expressly disclaim all and any form of liability to any person in respect of this update and any consequences arising from its use by any person in reliance upon the whole or any part of this publication.
Source: Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State)

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