Too many super accounts? Consolidate & maximise your return.Consolidating your super isn’t likely to be at the top of your financial to-do list, but it could be instrumental to your future financial health. While most Australians (around 80% to be exact) have their super invested with their default provider, comparing providers and moving your super into a single nominated fund, could make all the difference in maximising your superannuation potential. When it comes to evaluating your super, there are multiple aspects to be considered. For example, checking employer contributions, ensuring appropriate insurance cover and running comparisons on the performance of the super funds you may have, or are thinking of joining. A quick review can assist you in knowing whether you should consolidate or re-evaluate your super. To run a quick check, visit Money Smart and see how you can grow your super. Having the right mix of investments in your superannuation fund can be as simple as tailoring a plan to suit you or choosing an alternative super fund provider.

Why Should I Consolidate My Super?

Essentially, consolidating your super will save you time and money – both of which are precious! If you have had more than one employer in your lifetime, and you have always opted to use your employer’s default superannuation provider, then chances are you likely have money in two or more super funds (as do more than one-third of Australians). Consolidating your superannuation together into one nominated fund will not simplify your super, but it will give you a better opportunity to maximise your return. By having all your superannuation in the one account, you can:

• Pay only one set of fees, saving you a sizable sum over time.
• Keep track of your superannuation balance quickly and easily.
• Simplify your paper trail and tax matters.
• Maximise your potential return, as every dollar that gets reinvested adds significantly to your end goal.
• Ensure your income protection, TPD and associated insurances are maintained correctly.

Your superannuation is your retirement savings, so it’s crucial to know precisely how much super your employer is paying you, and what you may be entitled to through your super fund – having just one consolidated account will make this much more manageable for you. You should also be aware of the implications having multiple superannuation accounts can have on any related life insurance, total and permanent disability (TPD) and income insurance policies. Following changes to legislation in 2019, super funds must now cut off all insurance policies for funds that hold less than $6,000 at any time, as well as any inactive funds. That means if you are relying on insurance from old super funds, you may no longer have an active insurance policy. This could result in you not being covered in the event of a serious accident or loss of life. Additionally, some insurers may not honour a payout if you have more than one active insurance policy. This makes it imperative that you know what cover you have, with what insurer, and what their fine print is. It’s also a good idea to track and evaluate the progress of your superannuation over the last five years, to see if your current fund is working for your end goal. To perform a super check, and assess your retirement goals, get in touch with the experts at Super Network for an obligation-free consult.

How Do I Consolidate My Super?

Consolidating your super is a quick and simple process.Firstly, it’s worth doing a search to see if you may have any lost or unclaimed super. If you’ve ever lived overseas, changed your job, address or your name, you may easily have lost track of some of your superannuation. This lost super may be held by your previous super fund, or by the ATO, waiting to be claimed. Additionally, from 01 July 2019, super funds must legally report and hand over low-balance super accounts to the ATO. If possible, the ATO will consolidate these amounts into any active super fund you may have on your behalf. If they are unable to find an active super fund using your details, they will hold it until you claim it. To check if you have any lost or unclaimed super, you can:

• Log in to your myGov, go to the ATO portal (connect if you haven’t already), click on ‘Super’, and then ‘Manage My Super.’
• Call the ATO’s Lost Super Search Line 13 28 35

You can also find further details of your super, manage and transfer your super from one provider to another through your MyGov account. Before consolidating your super, you should also check if there are any fees or charges associated with closing your super account.

How Do I Keep Track of My Super?

The most important thing when it comes to keeping track of your super is to regularly check that your employer is fulfilling their obligations by paying the super you are legally entitled to into your nominated superannuation account. You can use the ATO’s online ‘estimate my super’ tool to work out how much super should have been paid on your behalf by your employer. If you believe the amount your employer has paid is incorrect, you can let the ATO know online here.Super Network can take the stress out of super consolidation and evaluate your super fund returns for you. For more information about consolidating your super or assessing your retirement plan, contact us for an obligation-free consult.