Are you paying double… or more?
You wouldn’t pay to put two kitchens in your home, so why would you pay to have two (or more) super accounts? It sounds crazy, but many Australians are doing just that. Even though, right now, it is super easy to rollover all your super into one, low-fee account and save money for retirement. Also new rules mean that if you don’t get your hands on any of your extra super accounts that may be inactive, they could be rolled over to the Australian Taxation Office (ATO).
How do I consolidate my super?
It doesn’t take long to transfer your super, just follow these four steps:
- Find your member number for each of the super accounts you want to roll over. Don’t stress if you can’t find this information though, some funds will only require your Tax File Number to be able to consolidate your money.
- Visit the website of the super fund you want to keep and log in.
- Select rollover (or consolidate) on your fund’s website and enter the details of the funds to roll in.
- If you are asked whether you want your fund to look for lost super, it is a good idea to say yes.
Why should I rollover my super?
Every super fund charges fees for managing your superannuation investment. These fees may be quite small, especially those charged by Industry SuperFunds, but if you have super with more than one fund, then you’re paying fees on every account. Multiple fees quickly add up and eat into your retirement income; the Productivity Commission estimated this could cost you more than $50,000 of your retirement savings.
That’s why it’s important to look at consolidating all your super into one account, so you’re only paying one set of fees. Plus, you’ll have a lot less paperwork to worry about.
Rollover and insurance
If the insurance in your super fund is important to you then check the fund you’re rolling into offers the amount and type of insurance you need. (e.g. Death and Disability insurance and Income Protection cover). When consolidating your super from one account to another any insurance coverage you have in your old fund will cease. If you’re unsure, contact your fund.