If you’ve never really bothered paying attention to how many superannuation funds you have, now’s a good time to start.
The younger you are, the less likely you are to be greatly concerned with your super. It’s a distant pot of money you receive after a lifetime of work.
But each time you get a new job, you can choose between electing your own super fund or letting your employer choose it for you.
Some people, especially during their first few jobs, will likely choose the latter out of ease. Depending on how many jobs you had in your lifetime, this means you could have little pockets of money across a number of funds eating away at your earnings with exorbitant yearly fees.
Thankfully, there’s a simple way to get it all sorted out if you want to pop all your money in the one place.
Why should I consolidate my superannuation funds?
As the government’s MoneySmart points out, there’s a fairly logical reason behind having one primary super fund.
As mentioned, you only pay one set of fees rather than multiple across accounts but having less paperwork and keeping track of a single super balance makes a lot of sense too.
It’s always a good idea to do your research and figure out which super fund has the best reputation and features. The Australian Prudential Regulation Authority (APRA), a regulatory body, releases reports that explain which super funds have been performing well and which ones often don’t.
How do I put them all together?
Changes made last year at the ATO meant all of a person’s superannuation funds would become visible on the ATO section of their MyGov account.
To do so, sign in to your MyGov account and head to the Super tab. Click on ‘Manage’ and then choose ‘Transfer super’. This will give you the option to empty one super piggy bank into another.
It’s as simple as that. The hard part is really thinking about which one is going to serve you best.