How to Consolidate Multiple Super Accounts
Unlock financial clarity. Discover how to combine your superannuation accounts, streamlining your retirement savings for better control and growth.
Superannuation, or “super,” is Australia’s compulsory retirement savings system, designed to accumulate funds for retirement. Many people accumulate multiple super accounts over their careers, often when changing jobs. Consolidating these accounts means combining them into a single fund. This process can simplify management and potentially reduce fees, leading to greater retirement savings over time.
Identifying Your Super Accounts
Locating all existing superannuation accounts is the first step before consolidation. A primary method for identifying these accounts involves using the Australian Taxation Office (ATO) online services, accessible through your myGov account. After logging into myGov, link your account to the ATO and navigate to the superannuation section to view a comprehensive list of all super accounts linked to your Tax File Number (TFN), including any lost or unclaimed super.
Beyond the ATO’s online services, alternative ways to track down accounts include reviewing old payslips, contacting former employers, or directly reaching out to super funds if you recall having accounts with specific providers. Gathering key details such as the fund name, account number, and Unique Superannuation Identifier (USI) for each account is important for subsequent steps.
Evaluating Super Funds for Consolidation
After identifying your super accounts, evaluate which fund best suits your consolidated savings. This decision requires careful consideration, as the right fund can significantly impact your retirement balance. Comparing different types of fees is an important part of this assessment. Super funds charge various fees, including administration fees, investment fees, and sometimes advice fees. Each super account incurs its own set of these charges, and consolidating to a single account can eliminate duplicate fees, allowing more of your money to grow.
Consider your existing insurance coverage within your super funds before consolidating. Many super accounts automatically include insurance policies, such as life insurance, total and permanent disability (TPD) insurance, and income protection. Consolidating accounts often means closing old funds, which can lead to the cancellation of these valuable insurance policies. Assess whether you can obtain comparable coverage in your chosen consolidated fund, especially if you have pre-existing medical conditions that might affect your eligibility or premium costs for new policies. Some funds may allow you to transfer your existing insurance cover, but this must be confirmed and processed before account consolidation.
Evaluate the fund’s investment options and historical performance. Super funds offer various investment strategies, from conservative options with lower risk and return potential to high-growth options with higher risk. While past performance does not guarantee future results, reviewing a fund’s long-term performance can provide insight into its investment management capabilities. Understanding the fund’s investment approach and how it aligns with your personal risk tolerance and financial goals is important. Additionally, consider other services and features provided by the fund, such as online access, mobile apps, member support, and educational resources, as these can enhance your overall experience and ability to manage your super effectively.
The Super Consolidation Process
Once your super accounts are identified and a fund selected, the consolidation process can begin. One straightforward method to initiate consolidation is through the ATO’s online services via your myGov account. Within the myGov portal, linked to the ATO, navigate to the super section, select “Manage,” and then “Transfer super.” This online service allows you to view all your super accounts and select which ones you wish to transfer into your chosen fund. The ATO processes these transfers, often within a few business days.
Alternatively, you can initiate the consolidation directly through your chosen super fund. Most super funds provide online forms or processes on their websites to facilitate rollovers from other accounts. You will need to provide details of the super accounts you want to transfer from, including the fund name, account number, and the fund’s Australian Business Number (ABN) or USI. Your chosen fund will then contact the other super funds to arrange the transfer of your balance. In some less common scenarios, it might be necessary to contact the source super funds directly to request a rollover.
Ensure all necessary information is available for the transfer. This includes your Tax File Number (TFN), as providing it makes it easier for funds and the ATO to track your super. If you have made personal super contributions to an account you are transferring from and intend to claim a tax deduction for them, notify that fund of your intention and receive their acknowledgment before initiating the transfer. This action helps ensure your eligibility for the deduction is maintained.
Post-Consolidation Administration
Once your superannuation consolidation request is submitted, follow up to ensure accurate completion. You should anticipate receiving confirmation from both the super fund you transferred from and your new consolidated fund that the transfer has been successfully processed. This confirmation indicates that the funds have been rolled over and your previous accounts have been closed.
After receiving confirmation, review the statements or online account details from your consolidated super fund to verify that the transferred balance is accurate. This step helps ensure all your savings are correctly accounted for in your single fund. Monitoring your account regularly through online portals or mobile applications can help you keep track of your balance and investment performance.
Update your employer with your new consolidated super fund details. This ensures that all future compulsory superannuation contributions are directed to your chosen account. Your employer will require your fund’s full name, its ABN, the USI, and your member number. You can provide these details using a Superannuation Standard Choice Form or through your employer’s payroll system. Periodically checking your super details via myGov is also advisable to confirm all contributions are being made correctly and to identify any newly created or lost accounts that may appear, for instance, from a new employer.