CONSOLIDATE YOUR SUPER
DO YOU HAVE MULTIPLE SUPER FUNDS?
If you’ve changed jobs, chances are you have more than one Super Fund. 3 out of 10 Australians with Superannuation have more than one Super Fund. The more funds you have, the more fees you pay. Most funds have a fixed administration fee regardless of how big or small your balance is. Multiple accounts usually mean unnecessary fees eroding your retirement savings.
Costs are a greater issue when super is Lost or unclaimed. You can roll your unclaimed super into an Eligible Rollover Fund, which may charge higher fees, and is often invested in very conservative (low return) assets. Most offer extremely limited investment options.
Over half (58%) of Australians believe there is no benefit to having multiple accounts.
Consolidating your super
means combining two or more Superannuation accounts into a single
account. It's easier to keep track of your Super when you reduce the number of
The top two excuses from Australians with two or more Super accounts are ‘because I don’t have time’ (28%) and 'I don’t know how (27%).
HOW TO CONSOLIDATE YOUR SUPER
Consolidation is pretty straightforward, it just involves a lot of paperwork. The requirements vary from fund to fund, but you generally need to complete a Super Consolidation or Request to Transfer Superannuation Benefits Form, and provide appropriate identification.
Before you start, make sure you know which fund you want it all to end up in. It is best to avoid multiple rollovers if possible. Generally there is a cost to consolidate, but it can be challenging to work out the true cost. Even if there isn’t an explicit fee, there is a cost. When you redeem units in a fund, there is a slightly different price when you contribute to when you buy units. This is known as a buy/sell spread. There will also be a period of time when your funds are not invested and won’t earn a return.
Before you consolidate
- Have the right insurance arrangements are in place before you close the old fund and lose that cover.
- Make sure your employer will contribute to your new fund. Not all employees have a choice of Funds and some awards specify the Fund for compulsory contributions.
- Make sure you redirect your employer’s contributions to your fund of choice before you request the transfer from your old fund.
- Complete other strategies such as Super Splitting or claiming a tax deduction for personal contributions before you exit.
Your Super Consolidation Checklist
- review your contributions from each
- review how your fund manager has
- review the level of risk in your
- review the amount and type of
insurance cover you are paying for
- find out the total fees you are paying
When am I better off with more than one fund?
Despite the benefits of consolidating, there are times when you might be better off with more than one fund:
- When one or more of your existing
funds has significant exit fees. Sometimes these can outweigh the benefits of
consolidating. If you decide to keep an old fund make sure you register for LifeSherpa CashBack so you get a refund
on commissions you're paying.
- If it's difficult to get Insurance
cover due to age or health. If you have Insurance cover with your existing
Super funds, make sure you have replacement cover in place before you give up
the old one.
What do I Get from a Super Review?
For a low fixed rate of $299 LifeSherpa will review your Super and investment options. This is what you get from a Super Review:
- An expert review of your existing
- Find your Lost Super
- Find the right fund and investment
options for your life and goals
- The paperwork to consolidate your
Super is done for you
HOW TO GET STARTED
1. Update your details in MyFinancialLife2. Visit the Advice Centre for a Super Review