Have you lost some of your super? Like many of us you may have accumulated a number of superannuation accounts as you moved from one job to another. If you have moved house and not kept your superannuation fund informed of your current address then it is likely that they have nominated your account to the ATO’s Lost Member Register (LMR).
One of the biggest advantages of combining your super accounts is the potential savings in fees (e.g. administration fees). Generally, the larger your super account balance the smaller the proportion of fees you’re charged for that account. So if you’re paying fees on multiple accounts with smaller balances, you can reduce the amount of fees you pay by reducing the number of super funds you have and increasing the balance of your chosen fund at the same time.
Another advantage of consolidating your super is less paper work. Having one super account means you only have one set of paperwork to manage. This could make it easier to keep on top of your super and understand exactly how it’s performing.
Consolidating your super is not just about saving money in fees, it’s also about giving your super the potential to really grow. With the power of compounding returns, the money you save in fees could really help grow your super balance. It also reduces the likelihood of you ending up with lost super in the long run.
Where can you find your old super?
If you already know where your super funds are, just collect the latest statements from your previous super funds. If you can’t find these, get in touch with your past employers and ask them where your super was invested when you left.
If you still can’t trace your super, it may be classified as ‘lost’. But don’t stress, you are not alone. It’s estimated that around 1 in 2 working Australians have lost super, which currently totals over $11.9 billion.
Fortunately, you can locate your lost super through the Australian Taxation Office’s free SuperSeeker tracing service by phoning them on 13 28 65 or online at www.ato.gov.au/super. You’ll need to provide your name, date of birth and Tax File Number. They will let you know if you have any lost super on their register.
How do you decide which fund is best?
Once you’ve tracked down all your old super, you need to decide which super fund best suits your personal circumstances.
Before consolidating your super, you need to compare the costs, risk and benefits of your current funds. It’s also a good idea to check whether any withdrawal or termination fees apply from any of your past funds and be aware of any investment or taxation implications. If you still have insurance with a past fund, make sure you don’t need or at least replace it before closing the account.
You’ll find a lot of useful information, such as details of the costs, additional fee rebates or insurance benefits and risks in each funds Product Disclosure Statement (PDS) and latest annual statement.
If you are unsure about consolidating your super or need more guidance please speak with your financial adviser.
Article sourced from BT Financial Group ‘What is consolidation?’ and MCL ‘Consolidating your superannuation’.
