Do you have more than one superannuation fund?
Could you be missing out on lost super from your past employment?
If so, then this article will help you to consolidate your superannuation policies into a single account.
Consolidating Super Saves Fees
Its costs money to have a super fund in the form of fees that are deducted from your super policy. While these fees may seem small, you pay them for each different super policy you own.
If you consolidate your super into a single policy then you can reduce the costs, while making keeping track of your super easier.
This Is What You Need To Know About Super Consolidation:
Step 1 - Locate Current Policies
The first step is to find all your super accounts. Locate past statements you've received from your super fund. You can also search the Australian Government's SuperSeeker website for any super accounts you've recently contributed into, as well as lost super.
What Is Lost Super? - If you've ever changed address and forgotten to update your super provider, you may have lost superannuation accounts. Lost super accounts are created when the fund receives return mail from your address and cannot contact you. When this occurs the super provider notifies the ATO and your money may be moved to a special lost super holding account. There is over $18 billion of lost superannuation in Australia.
Step 2 - Compare
Before you can choose the best super fund, you'll need to research your existing funds to determine the fees, benefits and performance. Most of the information you need can be found by visiting the super fund website, or by calling their customer service team. Things to research:
1) What fees and charges do I pay?
2) How is your money invested and what other investment options do you have?
3) How well has the super performed?
4) Do you get any other benefits for been a member? (i.e. discounts)
5) What insurance cover do your receive / Is insurance an option?
Step 3 - Check For Penalties
Some super accounts have exit penalties when you transfer money out of the account. Also, when you close your super fund you will no longer be entitled to the benefits under that fund, such as income protection insurance or member discounts.
Define Exit Penalty: -A fee charged to your superannuation balance when you close or transfer funds from your policy. These penalties can be thousands of dollars, so it's important to check for penalties before consolidating your super.
Your current employer will also need to be kept in the loop about your superannuation because they make SG contributions. Check with your manager if you are eligible to superannuation choice, which means you can pick which super policy your employer makes contributions into.
Step 4 - Find The Best Fund
Once you done your research on your existing policies, you can find the best fund for your needs. There are thousands of super fund available, some focus on low fees, other on great insurance or investment choice.
When choosing your fund, you need to consider other funds, not just the current super fund you have.
Choosing the right fund is a big decision, and you should consider getting professional financial advice on the most appropriate super policy for your situation.
Step 5 - Combine Your Accounts
Once you've decided on the best super fund for your needs, the final step is to consolidate your existing super funds into the new account.
Your new fund can provide you with the required superannuation consolidation form which is sent to each of your existing accounts instructing them to transfer your balance to the new fund.
Make sure you provide your employer of the new account details so they can make superannuation contributions.
Could you be missing out on lost super from your past employment?
If so, then this article will help you to consolidate your superannuation policies into a single account.
Consolidating Super Saves Fees
Its costs money to have a super fund in the form of fees that are deducted from your super policy. While these fees may seem small, you pay them for each different super policy you own.
If you consolidate your super into a single policy then you can reduce the costs, while making keeping track of your super easier.
This Is What You Need To Know About Super Consolidation:
Step 1 - Locate Current Policies
The first step is to find all your super accounts. Locate past statements you've received from your super fund. You can also search the Australian Government's SuperSeeker website for any super accounts you've recently contributed into, as well as lost super.
What Is Lost Super? - If you've ever changed address and forgotten to update your super provider, you may have lost superannuation accounts. Lost super accounts are created when the fund receives return mail from your address and cannot contact you. When this occurs the super provider notifies the ATO and your money may be moved to a special lost super holding account. There is over $18 billion of lost superannuation in Australia.
Step 2 - Compare
Before you can choose the best super fund, you'll need to research your existing funds to determine the fees, benefits and performance. Most of the information you need can be found by visiting the super fund website, or by calling their customer service team. Things to research:
1) What fees and charges do I pay?
2) How is your money invested and what other investment options do you have?
3) How well has the super performed?
4) Do you get any other benefits for been a member? (i.e. discounts)
5) What insurance cover do your receive / Is insurance an option?
Step 3 - Check For Penalties
Some super accounts have exit penalties when you transfer money out of the account. Also, when you close your super fund you will no longer be entitled to the benefits under that fund, such as income protection insurance or member discounts.
Define Exit Penalty: -A fee charged to your superannuation balance when you close or transfer funds from your policy. These penalties can be thousands of dollars, so it's important to check for penalties before consolidating your super.
Your current employer will also need to be kept in the loop about your superannuation because they make SG contributions. Check with your manager if you are eligible to superannuation choice, which means you can pick which super policy your employer makes contributions into.
Step 4 - Find The Best Fund
Once you done your research on your existing policies, you can find the best fund for your needs. There are thousands of super fund available, some focus on low fees, other on great insurance or investment choice.
When choosing your fund, you need to consider other funds, not just the current super fund you have.
Choosing the right fund is a big decision, and you should consider getting professional financial advice on the most appropriate super policy for your situation.
Step 5 - Combine Your Accounts
Once you've decided on the best super fund for your needs, the final step is to consolidate your existing super funds into the new account.
Your new fund can provide you with the required superannuation consolidation form which is sent to each of your existing accounts instructing them to transfer your balance to the new fund.
Make sure you provide your employer of the new account details so they can make superannuation contributions.
About the Author:
If you want to learn more about superannuation consolidation then visit the Find A Financial Planner website. You can also visit here to find a financial planner near Sydney. Start your free search today.
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