Over the life of your career you’ve likely changed jobs multiple times and each time, no doubt, signed up with whoever happened to be your then-employer’s default superannuation fund. While this was the easiest thing to do at the time, it now means you have superannuation funds all over the place. It’s like having multiple bank accounts, with a little bit in each, and each one being charged fees which can erode into your hard-earned money.
So it makes good financial sense to roll all your super into the one account, where only one set of administration fees will be charged and one set of fund reports will be issued – no longer will you drown in paperwork! Bonus: it will also be easier to keep track of how your super investments are progressing if you only have one fund to look at, rather than multiple ones each with multiple investment options and strategies. You’re probably thinking: *Sounds great, but how do I consolidate my super? While in the past consolidating super accounts was a logistical nightmare which involved filling in numerous forms, now it can be all be done at the click of a button.
Thank you, internet.
How do I consolidate my super?
There are two ways you can roll all of your super into the one account:
1. Complete your transfer online:** This is the easiest and quickest way to move all of your super into one account. Simply create a myGov account, then link the ATO to your account (don’t worry, this is pretty self-explanatory once you’ve logged in). If you already have a myGov account, just log in and click through to the ATO section.
Next, go to the “super” tab and select “transfer super”. In this section, you can see details of all your super accounts, including any you may have forgotten about. Choose the fund you want to transfer your money from (called the “transferring fund”) and the fund you want to transfer your money to (called the “receiving fund”) from the funds listed. Confirm your selection and your funds should move your accounts into one account within three business days. Find out more at ato.gov.au/superonline.
2. Contact your fund: You can contact either the fund you want to move your money into or your current fund to let them know you want to consolidate your accounts. Many funds provide a service where they will consolidate accounts on your behalf. Check your fund’s website to find out more.
^ You got this.
How do I choose which super fund to roll my money into?
If you know where your super accounts are, compare the fees, benefits and performance of each fund to decide which one is the best for you. This is particularly useful to do if you’ve just always elected to go with an employer’s default fund and have been blind to this information.
If you don’t know where all your super accounts are, check out the myGov website and start tracking them down.
Check whether your funds will allow you to transfer your super out and what the exit fees are. Also check that your employer will be able to pay your super into your chosen fund before starting the consolidation process as not all employers can contribute to all super funds. It pays to know where you stand before making a decision.
Why shouldn’t I consolidate my super?
There are certain instances where having multiple funds may be beneficial. For example, the exit fee may be quite high so it wouldn’t be worth your trouble moving money over, you may lose insurance benefits you won’t get from another fund (such as life, disability and income protection), or you may enjoy having a variety of investment options that more than one funds brings.
