A sharp rise in the number of superannuation accounts in Australia is a clear indication that the Federal Government has much to do before it can say that its retirement incomes policy is working well.

The just released 2005 APRA Superannuation Bulletin reports that Australia now has nearly 30 million superannuation accounts - a figure which could rise to 50 million by 2020 if the current trend continue.

According to Neil Cassidy, General Manager of one of Australia's leading industry funds, the trend is cause for concern and requires immediate attention.

"Multiple superannuation accounts means multiple fees and increased complexity in managing retirement savings." Cassidy said "The fact that Australians have multiple accounts is indicative of serious problems."

Cassidy believes that some of the reasons for the exponential growth in the number of superannuation accounts is that many Australians:

• don't have a retirement plan and remain disengaged from their superannuation.
• are reluctant to consolidate their super without first receiving expert advice.
• are concerned about losing their insurance cover by consolidating their super.
• are too busy and find the paperwork involved with rolling over super too complex.

The challenge for the super industry says Cassidy is to educate and empower ordinary Australians so that they will become 'engaged' and see super as part of a long term retirement strategy.

Cassidy says that Industry funds like Tasplan are constantly striving to get the following messages to members:

• Consolidation of super saves on fees and means more savings on retirement.
• FREE financial planning advice is available.
• FREE fee comparisons can be provided.
• Rolling over super isn't complex and funds can provide assistance.

"Australia's retirement incomes strategy will be undermined if the number of super accounts continues to increase exponentially." Cassidy said. "Government must work with the superannuation industry to encourage Australians to take control of their superannuation savings."