If you’ve had more than one job, chances are you also have more than one super account, especially if you have been happy to go with your employer’s default fund. Sound like you? Read on to see if rolling all your super accounts into one can help you save on fees and make managing your super easier.
To consolidate or not to consolidate
If you have multiple super accounts, it may be worth considering rolling them into one. One fund means one set of costs and only one account to manage.
There are several advantages to combining your accounts, including:
- Paying only one set of fees: you pay administration and other fees on each super account you have.
- Less paperwork: one fund means only one lot of paperwork (annual statements, funds reports and so on).
- There’s less chance of you ending up with lost super accounts if you only have one to keep track of.
- It’s easier to manage your investment strategy if you have only one account rather than having your super spread across several funds and in a variety of investment options.
There can be reasons for keeping more than one fund however, including:
- Some funds charge an exit fee for you to transfer your super into another fund. This fee can be quite high.
- You may lose insurance benefits you won’t get from another fund.
- Sometimes it isn’t possible for you to transfer your money out of an account (for instance, if you are in a defined benefit fund).
- You may actually want more than one super fund – the main reason for this is to take advantage of cheap insurance in a certain fund or increase the variety of investment options.
Choosing which fund to keep
If you’ve always elected to go with an employer’s default fund, now is a good time to actually sit down and find out what each fund is about. What type of fund is it and what can each one offer you? For a guide to comparing funds, check out Super Guru's Choosing a fund section.
Not all employers can contribute to all super funds so check that your employer will be able to pay your superannuation guarantee into your chosen fund before starting the consolidation process. Don’t forget also to compare the exit fees of each fund.
How to consolidate
Generally, you can choose to consolidate your accounts at any time.
- If you know where your super accounts are - compare the fees, benefits and performance of each fund you have an account with to decide which one is best for you.
- If you don’t know where all your super accounts are –check out the Lost super page and start tracking it down.
- Check whether your funds will allow you to transfer your super out and what the exit fees are.
- There are a number of ways you can arrange for transfer of your super accounts.
- You can complete the ATO’s portability form and send it to either the fund you’re leaving or the one you’re keeping.
- Speak to your chosen superannuation fund - many funds now have online systems for facilitating consolidation or forms that can be downloaded from their website. Usually you will need to supply the details of the accounts you wish to roll into the fund and certified identity documents. Once the fund receives this, they will contact your old fund and arrange for the transfer.
Once your old super fund receives your request to transfer, they have 30 days to move your money into your new super fund. You should receive a rollover benefits statement from your old fund in the mail once this is complete, so keep an eye out for it and contact your old fund if you haven’t received it within a reasonable amount of time.
Did you know? Some funds now offer a consolidation service and if you choose to stay (or set up a new account) with them, they will do all the transfer paperwork and even help you track down any lost super you might have.
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