AUSTRALIA - The ten million multiple superannuation accounts are resulting in a "deadweight cost" of A$315m a year for super funds, the Association of Superannuation Funds of Australia (ASFA) has found.
In a research report, ASFA said of the 28 million superannuation accounts held in funds, there were 14 million necessary primary ones and a further 4 million of "wanted, justified or unavoidable" ones.
This meant that ten million accounts were being held unnecessarily and costing funds A$135m to run.
ASFA research director Ross Clare said: "Care is needed in developing solutions to the problem of unwanted and unneeded multiple accounts.
"Proposals to set up a centralised fund and to relax identity checks of persons seeking to transfer superannuation account balances could well end up costing members more through higher costs, lower returns and a much higher incidence of theft and fraud."
The association said the system could work since 800,000 members succeeded in transferring balances or exiting from funds.
"The challenge is to build on this and have everyone who wants to or needs to consolidate their accounts able to do so without compromising investment returns or the security of their superannuation savings," it concluded.
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