How to Combine Super: A Detailed Guide

Introduction

Superannuation, often called “super,” is crucial for securing your financial future in Australia. It’s the savings you’ll rely on when you retire. However, many Australians accumulate multiple super accounts over their careers, often from switching employers. While this may seem harmless, having multiple accounts can result in unnecessary fees, duplicated insurance coverage, and lost potential earnings.

This is why knowing how to combine super accounts is a smart financial move. Combining your super means merging your multiple accounts into one, making it easier to manage and more cost-effective in the long run. Some people may hesitate, thinking the process is complex, or worry about losing valuable benefits like insurance. This guide will explain how to combine super funds efficiently and help you decide whether consolidation is right for you.

Why Should You Consolidate Your Super?

Consolidating your super accounts offers several compelling reasons and key benefits that make it worth considering:

• Reduce Fees: Each super account incurs separate fees, such as administration and management fees. By consolidating into one account, you eliminate these duplicate fees, which can significantly impact the growth of your superannuation over time.

• Simplified Management: Managing multiple super accounts can be overwhelming. Consolidating super accounts makes it easier to track your savings, review your investment performance, and make informed decisions.
• Better Investment Performance and Opportunities: By consolidating, you can choose a fund with various investment options and reasonable fees, improving the long-term performance of your superannuation.
• Avoid Lost Super: Many Australians lose track of their super accounts. Combining your superannuation ensures all your savings are accounted for and actively working for you.

What to Check Before You Combine Super Accounts

There are a few important things to consider before combining your super accounts:

• Insurance Coverage: Many super funds offer insurance for death, disability, and income protection. When you consolidate, you may lose insurance attached to some accounts. Make sure the new fund offers comparable or better coverage or transfer your insurance to the new super fund before you consolidate.

• Investment Options: Different super funds provide varying investment options, such as conservative, balanced, or high-growth options. Choose a consolidated fund that matches your financial goals and risk tolerance.
• Fee Structure: Compare the fee structures of your current funds. While consolidating can reduce fees, some funds may charge exit or transfer fees. Ensure that your new fund offers competitive fees in the long run.
• Tax Implications: If you're consolidating a large amount of super, there could be tax consequences depending on your personal situation. Consult a financial adviser if you’re unsure.

How to Combine Your Super: Step-by-Step Process

Here’s a simple process on how to combine your super:

Step 1: Gather Your Super Account Information

Collect details from all your super accounts, including account numbers, fund names, and membership details. You can access legalsuper details here, and this information is also available through your super statements or by logging into your MyGov account. The Australian Tax Office (ATO) also provides services that allow you to view all your accounts, including lost or forgotten super.

Step 2: Choose Your Preferred Super Fund

After reviewing your accounts, choose the super fund you want to keep. This should be the account with the best combination of fees, investment options, service, and insurance coverage. Compare the funds thoroughly before making a final decision.

Step 3: Use the ATO’s Online Services

The easiest way to combine super accounts is through the ATO’s online services. After logging into MyGov and linking it to the ATO, you can see all your super accounts. Select the accounts you want to consolidate and follow the prompts to transfer balances into your chosen super fund. You can also consolidate into your legalsuper account by contacting us or online on MemberAccess.

Step 4: Complete the Transfer

Once you initiate the transfer, the ATO will handle the process. You should receive confirmation from both the ATO and your super fund when the transfer is complete. The process usually takes a few days, but monitor your accounts to ensure everything is correct.

Step 5: Monitor Your Super Account

After consolidating, keep an eye on your new super account. Review your insurance coverage, investment options, and fees to make sure everything is set up as expected.

When to Switch or Consolidate Superannuation Funds

Consolidating your super is not just about reducing fees—it’s also about improving your overall financial strategy. Here are some situations when you should consider consolidating:

• High Fees: If your current fund charges high fees, it may be beneficial to switch to a more cost-effective fund.
• Life Stage Changes: Major life events, such as buying a house or nearing retirement, might prompt you to reassess your super strategy and consolidate into a fund that fits your new needs.
• Better Investment Options: If you want more socially responsible or high-growth investment strategies, consolidating your super into a fund offering these options could be beneficial.
• Service and support options: If you prefer personalised service, are time poor or value having access to expert guidance, legalsuper offers one-on-one guidance, book an appointment here.

Conclusion

Consolidating your super can simplify your financial management, help you save on fees, and optimise the growth of your retirement savings. Make sure you carefully review your current funds’ insurance, investment options, and fees before making a decision. Combining your superannuation can be straightforward and could significantly improve your financial well-being over time.

For more information and to consolidate your super, visit our dedicated consolidation page.