Consolidate your Super

Posted on 15. Sep, 2011 by admin in Superannuation

Employers are required to make regular superannuation contributions for any employee earning at least $450 per month. While employees can nominate their preferred super fund, many opt for the employers default fund. By changing jobs this can lead to the common situation of having multiple active super funds with each one having their own set of fees. By combining (or consolidating) super funds into fewer account this can save you money and make it easier to keep track of your super investment.

Before consolidating your super fund accounts, some things to consider are:

• Fees may apply to withdraw and deposit funds. You should contact your fund to check what exit or withdrawal fees may apply before transferring money out. Also, the fund you are transferring to may charge entry or deposit fees.
• Benefits may exist on funds such as insurance entitlements for death, illness or accident. When transferring to a new fund you need to consider any terms and conditions such as waiting periods for insurance.
• Ensure your employer is paying contributions into your preferred fund as you will not be able to rollover or close the old fund until the super fund has confirmation that contributions have ceased.

If you have changed employers and potentially have multiple super funds but have lost track of which ones exist, you can use services such as ATO’s SuperSeeker to help find lost super. Refer to the Unclaimed Super article for more information.

Tags: consolidation, super