From 1 July 2019, new arrangements to protect your super balance from erosion by inappropriate insurance and fees will apply:
- cancellation of insurance:Ā super funds will cancel insurance on accounts that havenāt received contributions for at least 16 months. Your fund will contact you if your insurance is about to end. If you want to keep theĀ insurance through your super, you must tell your super fund or make a contribution to that account. You may want to keep your insurance if you donāt have any through another fund or insurer and you have a particular need for it (e.g. you have children or other dependants or work in a high-risk job).
- no exit fees:Ā there are no exit fees if you leave your super fund.
- fee limit on low-balance accounts:Ā annual administration and investment fees canāt exceed 3% of the balance of accounts with less than $6,000. Your account balance is calculated at the end of the fund year.
- inactive account transfers to ATO:Ā accounts with less than $6,000 that are inactive for 16 months will be transferred to the ATO. The ATO will merge it with your other active super account. If you donāt have another active account, the ATO will keep your super safe.
Get financial advice
Planning for your retirement is complex and itās important to get advice from people with specialist knowledge. SeeĀ financial adviceĀ for more information on how you can maximise your retirement savings.
Itās never too early to start thinking about your super. Take steps now to get the retirement lifestyle you want.