Consolidating super funds
Streamline your super
If you received more than one super statement this year and are
finding it hard to keep track, you're not alone. You may even have
lost some of your super over the years. If this sounds like you,
here's how to streamline your super and save on fees.
Why you should consolidate your
super
The benefits of having all your super in one account
include:
- saving costs by paying only one set of fees
- reducing your paperwork
- making it easier to keep track of your super.
If you're in a defined benefit
fund, think very carefully and get advice before leaving.
How to move all your super into one
fund
Transferring all your super into one fund is usually an easy
process, but you should first check the details of each fund you
have, so you can decide which one is best for you.
Check the details of your super funds
Before you consolidate your super funds, check if:
Smart tip
When consolidating your super, don't just choose the fund with
the highest balance. The best fund for you may be one of your small
accounts, or a completely new fund.
Information you'll need to compare super funds
Gather the following details of your current super funds, so you
can compare like for like when making your decision about which
fund is right for you:
- Combined balance - Add up the balance of all
your funds and do your comparisons based on this balance. This will
allow you to accurately compare expected fees and returns after you
have consolidated.
- Investment option - By deciding how you want
your super invested you can compare funds based on a similar
investment. This may be different from how your money is currently
invested.
- Fees - Look at the fees you are being
charged in each fund - some may be a set dollar amount, others may
be based on a percentage of the balance. In the end it's the net
result (returns minus fees) that matters.
- Insurance - Decide how much insurance, if any,
you would like to have inside super so you can compare premium
costs for your chosen level of insurance in each fund.
Compare and consolidate your funds
- Compare funds - Use a super
comparison website to see how the top performing super funds
compare with yours. Remember that there are hundreds of
publicly available super funds and last year's top performer is
rarely this year's number one. Although past performance doesn't
guarantee future performance, any fund that is consistently in the
top 20 or so funds is probably doing okay.
- Make a choice - Decide on a fund that best suits
your needs.
- Check your insurance cover - Make sure you can
get an appropriate level of insurance in your chosen fund.
- Open an account - If you have chosen a new
super fund you will need to open an account with the fund. Ask them
for all details your employer will need to pay your super into that
fund, and make sure you can get your desired level of insurance
before you switch funds.
- Tell your employer - Make sure they know where
to pay your super and how to correctly identify you to the
fund.
- Rollover super to your chosen fund - You
can do this online through myGov. For more information, look at the
Australian Taxation Office's (ATO's) keeping track of your super page. Or you
can transfer your balance to your new fund by contacting them by
phone or online.
Consolidating your super fund accounts takes a
bit of effort in the short term but will reward you in the long
term. You'll feel more in control and be able to watch your super
grow.
Related links
Last updated: 04 Feb 2019
