Firstly, find lost superannuation funds or accounts you may have forgotten about. Having multiple accounts could mean paying more in account keeping fees than necessary. You could also miss out on money in retirement.
Once you know where all your superannuation is, you may like to consider consolidating (or rolling over) all the different balances into a single account. This potentially doesn’t just save on account keeping fees, it means you can easily keep track of your super throughout your working life.
Before transferring different accounts into a single one, it is 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.
Next, take a look at how your super is invested. Most Australians are free to choose their own super fund. You need to be sure you have the fund that is right for your needs and that your super is invested in a way that suits your comfort level with risk, while still helping you achieve personal goals.
Relying on your employer’s 9.5% Superannuation Guarantee contributions alone may not be sufficient to ensure you lead a rewarding retirement.
Any additional contributions you make will help to build your super savings and this, in turn, could increase the dollar value of the returns your super earns to help build your retirement savings.
Taking control of your super today could mean more money for you in retirement.
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.
Superannuation is a long-term investment. Generally, contributions to a superannuation fund are preserved. The government has placed restrictions on when you can access your preserved benefits. In general, benefits will not be able to be paid until a member is age 65, or has permanently retired and is above his/ her preservation age (i.e. 55 years up to 60 years depending on when the member was born).
The Government has set caps on the amount of money you can add to superannuation each year on a concessionally taxed basis. Contributions that exceed your contributions caps may have additional tax applied to them. The contributions caps change from time to time. Up to date information is available on the ATO website at ato.gov.au.
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.