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‘Unlucky lottery’: Useless duplicate accounts and fees eroding billions in our savings

A landmark report is calling for a major shakeup of the superannuation industry after it was revealed members are losing billions in savings every year.

The Productivity Commission has described Australia’s superannuation system as an “unlucky lottery”, with useless duplicate accounts and unnecessary fees eroding retirement savings.

Underperforming funds have also been targeted in the new report.

The Commission has recommended sweeping reforms, including a system where a worker would choose a default account from a list of top-performing funds rather than being automatically placed into their employer’s chosen fund.

If changes are implemented, new workers could be up to $400,000 better off by the time they retire.

Financial expert Peter Switzer says having multiple super accounts is, without a doubt, a waste of your money.

“There are set fees, administration fees and insurance fees that are compulsory,” Peter tells Chris Smith.

“It shows up most for younger people who get casual jobs where they are put into a superannuation fund and they might end up with$1,000 bucks in their super.

“It gets whittled down and can even disappear when the fees chip away.”

Peter says there is a way to regain your lost super, and it’s as simple as a few Google searches.

Click PLAY below for Peter Switzer’s advice