Cull that super and spend it on flash breakfast
MILLENNIALS’ expensive addiction to hoovering down smashed avocado could be offset if they took one simple financial step.
Consumer group Choice has revealed Millennials fork out more money on breakfast than any other generation, splashing out $ 1321 annually compared with Gen X diners, who spend $ 1123.
But the data has also revealed Millennials are spending almost the same amount on breakfast as what the average person loses each year on paying fees by having an extra superannuation account.
Choice data found annual fees on a 34- year- old’s super account with a balance of $ 50,000 in one of the nation’s biggest super funds is $ 1248, compared with the $ 1321 they are splashing on eating breakfast out.
Super fund Hostplus has more than 1.1 million members and over 60 per cent are Millennials aged between 18 and 35.
More than one in five members have consolidated multiple accounts.
The fund’s chief executive officer, David Elia, has urged Australians to consolidate accounts and maximise compound interest.
“Account consolidation only takes a few minutes – there are no forms, it’s all online – and it could mean the difference between affording a deposit on a house at retirement,’’ he said.
“The more money you have in one account, the harder it can work for you and the more interest you can earn.”
Latest Australian Taxation Office data found at June 30 this year more than 14.8 million Australians have a super account, but more than 40 per cent of these people held multiple accounts. Choice spokeswoman Stefanie Menezes said consolidating accounts could result in a Millennial saving an extra $ 25,000 by the time they retire if they close duplicate super accounts.
To consolidate accounts Australians can use Choice’s new “Cado” chatbot via Facebook or they can go direct to the myGov website.
This links to the ATO’s online services where super details and accounts online can be viewed.
The Australian Institute of Superannuation Trustees’ chief executive officer Eva Scheerlinck also urged Australians to firstly work out which super fund they want to keep before consolidating.
“You need to compare the long- term returns of each fund, the fees charged and ensure the insurance offered is appropriate for your needs,’’ she said. “It could be a backward step to consolidate into an underperforming fund.”