How do I change super funds?
The easiest way to find all of your lost superannuation accounts is to head to the my.gov.au website and link your account to the Australian Tax Office, or ATO. Then, you can transfer your old super balance to your new super fund on the my.gov.au website.
Alternatively, you can authorise a super fund to do it for you, or use the Rollover Form found on the ATO website. If you use the form, you'll need to provide certified identification to prove that you're the one transferring your super.
Why change funds?
You may want to choose another super fund because it will result in lower fees, or if the old fund's performance isn't good enough. Remember, one or two bad years may not tell you everything you need to know about your super fund's performance, so consider using its five-year performance record.
Over the long-term, even slightly lower fees and better performance can make a huge difference to your wealth, thanks to the power of compound interest.
Things to consider before you switch super funds
Before you transfer your super, it is vital to consider:
- Which super fund your employer is currently paying your contributions into. Before you make the switch, let them know which super fund you intend to go with because it may affect your contributions.
- Your existing insurance cover. When you change super funds you may lose insurance cover like life insurance or income protection.
- Any exit fees you'll have to pay to leave your old super fund, and contribution fees for your new fund.
- Speaking to your financial adviser and/or accountant.
Finally, before you make the switch, be sure to compare the new super fund with two other similar funds and get professional advice if you get confused or are unsure about something.
Test Your Knowledge
Jane says, "changing super funds is like skipping rocks at the beach - you should collect as many as you can." Jane…
By consolidating your super into one fund it's likely you will pay lower ongoing fees. However, you should carefully consider your current super fund's exit fees and any contribution fees for your new fund.
Which of these is NOT one of the best ways to consolidate your super?
You can transfer an old super balance to your new super fund on the my.gov.au website, by authorising a super fund to do it for you, or by using the Rollover Form found on the ATO website.
Which of these should you carefully consider before consolidating your super?
When you change super funds you may lose insurance cover, like life insurance or income protection. Call your super fund, or log into your super fund's online account to see if you are paying for insurance.
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