If you’re like many Australians, you’ll have superannuation accounts open with several funds. This generally happens because different employers can have different default super funds, and most of the time employees just go with the default when they start a new job. So if this if you, you’re not alone.
While nothing drastic is likely to happen by having multiple super accounts open, there are definitely some benefits to bringing them together. Super is a very important part of your overall financial picture, and consolidating your super is an extremely valuable exercise.
The benefits of consolidating into one account include:
- Cost savings, by paying only one set of fees
- Less hassle, as it’ll be much easier to keep track of your super (and you’ll receive less paperwork in the mail!)
- Possible more money if you consolidate it into the best performing of all your accounts.
Before you decide to move super funds, make sure you check:
- If there are any termination fees
- If you will keep the same level of insurance in your chosen fund
- That your employer can contribute to your selected fund.
How to find your “lost” super:
- Use the ATO’s myGov service (you’ll need your tax file number to get started)
- Call your current super fund and they can help you complete a lost super search.
So there you go – consolidating made simple. By following these steps, you could end up saving yourself a whole lot of hassle and paperwork, and maybe even have more money to invest in your future.