Tax Office figures show that over 14 million Australians have a super fund account and around 45% of these people have more than one super account. Over one in ten have three super accounts and 8% have four or more super accounts.
Having more than one superannuation account could mean paying multiple sets of account keeping fees as well as making your super harder to manage and keep track of.
Combining multiple superannuation balances into a single account may offer some advantages. It could mean saving on account keeping fees and this can potentially make a significant difference to the value of your final super balance when you decide to retire.
To consolidate super can also mean having only one set of fund statements to read, making it easier to keep on top of your superannuation and evaluate how it is performing.
With just one fund to keep track of, consolidating your super also makes it easier to keep tabs on your super throughout your working life, so you potentially won’t miss out on any superannuation savings in retirement.
Consolidating your super means rolling over multiple balances into a single super account.
This is a process that can involve a bit of paperwork as you need to inform each fund in writing about your plans to consolidate. These forms should be available on each super fund’s website.
BT offers a super rollover tool that makes the process easier and involves less paperwork.
Superannuation funds have different rules and conditions when moving your money to another fund. You should contact your super fund to find out if there are any fees or costs for moving your super or other loss of benefits such as insurance cover. It is important to find out if you can get the same level of insurance cover in your chosen super fund.
The key is to weigh up the benefits of holding onto another fund versus the advantages of having all your super in one place. It is also a good idea to check with your other funds to see if there are any exit fees for moving your benefit or other loss of benefits such as insurance. A financial adviser can discuss which super fund is most appropriate for you based on your personal situation and goals.