How to Combine Your Super Funds

Many Australians accumulate multiple superannuation accounts throughout their working lives. Superannuation is a system designed to help individuals save for retirement, with employers making compulsory contributions into these funds. Having several super accounts can result from changing jobs, as a new employer might open a new fund if you do not specify an existing one. Consolidating these accounts into a single fund can streamline management and potentially enhance your retirement savings.

Information for Combining Super Funds

Before consolidating your superannuation accounts, gather specific details about each fund. Identify all current super funds by their names and, if available, their Australian Business Numbers (ABNs). Locate your member account number for each super fund. These numbers are unique identifiers for your individual superannuation account.

Understanding the current balance held in each fund is important. This information can be found on your annual superannuation statements or by logging into your fund’s online portal. The Australian Taxation Office (ATO) online services, accessible through myGov, also allow you to view all your super accounts. These details are required to process any consolidation application, ensuring your funds are transferred to the correct account.

Methods for Combining Super Funds

There are a few primary ways to combine your funds. One common method is through the Australian Taxation Office’s (ATO) online services via your myGov account. Sign in to myGov, navigate to the ATO section, select ‘Super’, then ‘Manage’, and finally ‘Transfer super’. This process allows you to view your super accounts and choose which ones to consolidate into your preferred fund.

Alternatively, you can directly contact the super fund you wish to consolidate your money into. Many super funds help members combine their super, often providing specific forms. You need to complete a ‘rollover initiation request to transfer whole balance of superannuation benefits between funds’ form, which the receiving fund can provide. This form is submitted directly to the fund you are rolling into, and they will manage the transfer process with your other funds.

Paper forms are also available for consolidating super funds. These forms require you to fill in your account details and need to be mailed to the super fund you are transferring your money to. When using ATO online services or a paper form, you can only transfer the whole account balance, which will result in the closure of the transferring account.

Key Considerations Before Consolidating

Before consolidating, evaluate several factors to make an informed decision. Review the impact on any existing insurance coverage held within your super funds. Many super accounts provide default insurance policies, such as life, total and permanent disability (TPD), and income protection cover. Consolidating accounts may lead to the cancellation of insurance linked to the funds being closed, potentially requiring you to apply for new policies with different terms or higher premiums. Contact your existing funds and the fund you plan to consolidate into to understand how your insurance will be affected and if you can transfer or obtain comparable coverage.

Another aspect to compare across your super funds is the fee structure. Superannuation funds charge various fees, including administration and investment fees. Administration fees cover account management costs. Investment fees are charged for managing assets within chosen investment options. Consolidating can reduce total fees paid by eliminating multiple sets of charges, impacting your retirement savings over time.

Beyond fees, consider the investment options and historical performance of each fund. Super funds offer a range of investment strategies, from conservative to high-growth, with varying levels of risk. Reviewing how different options have performed can help you select a fund that aligns with your financial goals and risk tolerance. While past performance does not guarantee future returns, it provides insight into the fund’s approach to managing investments.

Finally, be aware of tax implications. Superannuation is a tax-advantaged savings vehicle in Australia, and no tax is payable on the amount rolled over between complying super funds. If a super fund sells assets to facilitate a large transfer, it might trigger capital gains tax for the fund, though this does not directly impact your personal tax liability. If you plan to claim a tax deduction for personal super contributions, notify your existing fund and receive acknowledgment before consolidating.

After Combining Super Funds

After submitting your request to combine superannuation funds, expect a confirmation process. The receiving super fund will send you a confirmation once the funds have been transferred into your account. The transferring fund or funds should also confirm that your account or accounts have been closed and the balances rolled over.

The processing time for superannuation rollovers can vary, taking a few business days to complete. Some funds may take 3 to 7 business days. Monitor your super accounts through online portals or myGov to verify the consolidation has been completed and all funds are now in your chosen account. If there are any discrepancies or delays, contact your super fund or the ATO for an update.