Australians are losing $6.5 billion on unnecessary costs such as fees and subscriptions, prompting Rest to encourage them to check their bank and superannuation statements.
The superannuation provider found 62 per cent were paying for services they no longer used, losing out on $3.9 billion, and the average Australian had three monthly subscriptions.
They were also losing a further $2.6 billion on excess fees and insurance for multiple superannuation accounts, which was exacerbated by the fact 21 per cent said they had never checked their superannuation account.
Rest chief executive, Vicki Doyle, said: “Many Australians are feeling overwhelmed by their current and future finances, and unfortunately this can have a negative impact on their financial health. One-in-five Aussies have never checked their bank or credit card statements, and a fifth have never checked their superannuation account. Yet checking these statements was found to be the most common way of discovering fees they weren’t aware of.”
Research found holding multiple superannuation accounts could erode savings as administration fees, insurance premiums and contributions tax add up to significant amounts over time, particularly as some people were unaware they hold more than one.
The Productivity Commission Report found a worker with two accounts over their working life would end up $51,000 worse off at retirement.
The need to consolidate multiple accounts was even more pressing since the Protecting Your Super legislation came into force on 1 July, which meant inactive accounts with less than $6,000 would be transferred to the Australian Taxation Office.