Whether you're climbing the corporate ladder, exploring a new career direction or starting a new business venture, changing jobs can be an exciting and busy time. But it’s important not to overlook your superannuation.
Most Australian employees are free to choose which superannuation fund they would like their employer super contributions paid into and so it is worth having your super fund details handy to take along with you during the first few days in your new role. You may also be asked to provide these details to your employer before you start your new role.
When you start your new job, you should receive a standard choice form from your employer. You can use this form to let your employer know where to pay your super contributions and ensure all your superannuation is where you want it to be.
If you don’t nominate a fund, your employer super contributions will be paid into a ‘default’ fund. This is the super fund your new employer has chosen on behalf of those staff members who haven’t named their preferred fund.
Changing jobs is one reason why people end up with multiple superannuation accounts and even lose track of their super altogether.
A change of job may not mean you have to change your superannuation too, and there are good reasons to take your super with you from job to job:
With only one super account, you will avoid paying multiple sets of account keeping fees. This potential saving may help to grow your super balance for the future.
Having just one super account can also mean fewer statements and reports, so you’ll have less administration to deal with and this could make it easier to track how your super is performing.
By transferring all your superannuation into one account, it can be easier to manage your investment mix and ensure your super stays on-track to meet your long-term financial goals.
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.
This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
Before requesting a rollover, you should consider where your future employer contributions will be paid (if your employer contributions are currently being paid to another fund) and check with your other fund(s) to determine whether there are any exit or withdrawal fees for moving your benefit, or other loss of benefits (e.g. insurance cover), noting that you may not receive the same type or level of benefits after the rollover. You may not be covered for injuries or illnesses that have arisen since you took out previous insurance, and you may lose loyalty benefits.
There may be limited circumstances where your employer is not required to accept your Choice of Superannuation fund form eg. if you have already exercised Super Choice in the last 12 months.