Consolidating your super means moving all your super into one account. It makes your super easier to manage, and saves on fees.
Before you consolidate, pick the best super fund for you.
You can transfer your super for free in a few simple steps.
If you’re ready to consolidate your super now, go straight to the Australian Taxation Office (ATO) online at myGov.
Why consolidate your super
Consolidating your super can save you time and money.
Having all of your super in one account means you:
- save money by only paying one set of fees
- have less paperwork
- can keep track of your super balance more easily
Things to do before consolidating your super
Before you change out of a super fund, there are few things you need to do to make sure you don’t lose important things like insurance.
Check employer contributions
Check your current accounts to see if changing funds will affect how much your employer contributes. Some employers contribute more to certain funds.
Check your insurance cover
Before you leave a fund, check to see if you have any insurance through the fund. This might be life, total and permanent disability (TPD), and/or income protection insurance.
If you change funds, you might not be able to get the same cover. Be particularly careful if you have a pre-existing medical condition or are aged 60 or over.
If you’re not sure, get independent advice from us.
When you change super funds, you usually keep the existing insurance until the replacement policy is issued and your new cover is confirmed.
Tell your employer
Whether you choose a new super fund or one of your existing ones, give your employer the details they need to pay your super into your chosen account.
Check your type of super fund
Super funds can either be accumulation or defined benefits funds. If you are in a defined benefits super fund get professional advice before you leave. Some funds are very generous, so make sure you’ll be better off. If you leave, you can’t rejoin. See Types of super funds.
When you consolidate your super, don’t just transfer your super into the account with the highest balance. The best account for you may be one of your small accounts, or an account with a completely new fund. See choosing a super fund.
How to consolidate your super
Once you’ve chosen your account, transfer the balance of your other super accounts into it.
You can do this easily online through the ATO:
- go to my.gov.au
- log in or create an account
- link your myGov account to the ATO
- select ‘Super’ and then ‘Manage’
- select ‘Transfer super’ (this option will only appear if you have more than one super account)
This will show you all of your super accounts and let you transfer your balance from one to another.
You can also transfer your balance to a new fund by:
- contacting the new fund directly
- using an ATO rollover form
Changing super funds
If you only have one super fund but you’re thinking about changing, follow the same process as you would follow for consolidating your super.
You might be thinking about changing funds to:
- invest in a fund with better services and features
- leave a fund that has been performing poorly
- leave a corporate fund after leaving your job
Don’t rush to change super funds if:
- your fund performed poorly in single year — judge its performance over five years or more
- you’re chasing last year’s top-performing fund — it may not perform as well in coming years
Remember to check your insurance cover before you change.
If you need to consolidate your super, we can help.
Source: ASIC (MoneySmart)
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/how-super-works/consolidating-super-funds
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