Mark has opened 19 super accounts without realising it – and he says it has halved his retirement savings.

Mark Brian Ipinazar unknowingly opened 19 super accounts and took out multiple life insurance policies over a 20-year period while working as a miner.

“I was young and stupid and didn’t take responsibility for looking after it,” the 52-year-old said.

It wasn’t until the miner fell in love with his current wife, Elle Roberts, and the couple began combining their assets that he realized what had happened.

In Australia, employers are required to pay superannuation contributions to their employees.

Ipinazar consolidated his accounts but said he was paying too many fees that affected his retirement savings.

“A few people [at work] They told me how much they had,” he said.

“That’s probably double what I have.”

Man and woman looking at each other

Ipinazar said his wife, Elle, helped him achieve financial stability.(Offering)

Roberts said that based on what he’s made during his working life, he should have at least $300,000 saved up for retirement, but he only has about half that amount.

According to the Australian Taxation Office (ATO), as of June 2023, 23% of Australians with superannuation accounts, or four million people, have more than one account.

This figure is an increase of about 100,000 from the previous year.

Financial advisor and podcast host Glenn James said people with multiple super accounts risk being charged multiple administration fees and having to take out multiple insurance policies.

“Your pension is your money, you need to pay attention to it and know where it’s going,” James said.

Ipinazar hopes his story will encourage people to check their super accounts.

“When you retire, no one’s going to take care of you. You have to take care of yourself,” he said.

Super Staples

Mr James said the next generation of workers would be less likely to have multiple super accounts since the Federal Government introduced super stapling in 2021.

“These days, if you get a job your super fund is linked to your taxpayer number so you’re not going to be in a position to collect super funds,” he said.

A man is looking at the camera with a small smile

Luke Elrott works in the energy sector in Central Queensland.(ABC News: Scout Warren)

Luke Elrott, 24, lives in Rockhampton in Central Queensland and has worked a variety of jobs since he was a teenager.

When he started his first professional job in the energy industry a year ago, his new employer offered him to join a new industry super fund.

“I looked at the papers and decided which one was best, so I went for it,” he said.

Consolidating retirement accounts was easy and took just a few minutes, he said.

Man looking at computer

It only took Luke a few minutes to integrate the supermarket online.

An ATO spokesman said Australians can check if they have lost or unclaimed super or consolidate their super funds through their MyGov account or by completing a super health check.

Ipinazar said it was important for young people to be aware of their financial situation.

“I need to be more aware and get my finances in order,” he said.

Mr Elrott said financial education needed to improve in Australia because parents were not always teaching their children financial literacy.

“If parents don’t have much financial literacy, [information] It won’t go to the kids,” he said.

“If you introduce it into the curriculum, e.g. [financial] By learning effective strategies and the right research methods, anyone can understand their own financial trajectory.”

Lost and unclaimed super

Mr James said people with multiple super accounts were at risk of losing their super or not being claimed.

Glenn James

Glenn James hosts a finance podcast aimed at millennials.(By: Glenn James)

An ATO spokesman said people who change their name, occupation or address, or forget to tell their superannuation fund about the changes, could lose their pension or it could go unclaimed.

They said there was $16 billion in lost or unclaimed super, up $2.1 billion from the previous year.

An ATO spokesman said lost super was money held by super funds that had not been able to contact members for 12 months or where contributions or rollovers had not been received for five years.

As of June 2023, there were 320,000 lost super accounts.

Mr James said unclaimed super was held by the Australian Superannuation Corporation and was at risk because it was invested in the market and not generating income.

Subscribe to our free local newsletter delivered every Friday

Posts , Has been updated

#Mark #opened #super #accounts #realising #halved #retirement #savings

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top