Consolidating your super

How and why to consolidate your super

To consolidate or not to consolidate?

Some of the reasons you might want to move multiple super accounts into one include:

  • 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 (such as annual statements, funds reports)
  • there’s less chance of you ending up with lost super accounts if you only have one to keep track of and only one fund to tell if you change your address
  • 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.

Reasons for keeping more than one fund include:

  • 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.

Check out our downloadable PDF:
Checklist of things to think about before you consolidate your super accounts.

How I saved hundreds on my super: Jesse, 24, uni student

I used the myGov website to find all seven of the super accounts I had. I was pretty stoked to find out I had a couple of thousand dollars in super that I didn’t know about. After comparing all the info on the different fund websites to see which of the super funds worked best for me, I used the myGov website to move all my super into the one super account. I thought it was going to be really difficult, but it was really easy. Now my super’s all in one account, I reckon I’m saving about $300 a year in fees.”