Whilst it is often placed in the 'too hard' basket, superannuation is your hard-earned money and your future that's at stake. Decisions you make today can make a big difference to your lifestyle in retirement years from now. If you have more than one super account, which may well be the case if you have had more than one job, you should consider consolidating them into a single super fund. Consolidating your super funds so that they are all together in one place allow you to keep track of managing your retirement savings to ensure you reach your retirement goals.

Benefits of consolidating
Multiple super accounts mean you are paying multiple fees and multiple insurance premiums. Combining all those super funds into one can make it easier to track, easier to manage and importantly, allow you to take advantage of the power compounding returns. In addition, many super funds charge administration fees on a tiered basis so that the fees decrease as your balance increases.

Considerations - beware of fees
Once you’ve chosen to consolidate your superannuation, you should decide which super fund will best suit your personal circumstances. This includes understanding the costs and benefits of your current funds and comparing them to the new fund. Be sure to check for any exit fees and consider the tax implications of transferring. Whether you choose to consolidate existing funds into a new superannuation account or into one of the existing funds, it is important to avoid paying unnecessary fees. Entry fees of 4% are often charged on super rollovers and if the super fund was set up through a financial adviser you may also be paying an adviser service fees. These fees can be can be avoided with 2020 DIRECTINVEST’s 100% entry fee rebate so please visit the superannuation area of our website to avoid the unnecessary costs of consolidating your super funds.

Many people are unaware how easy it is to switch and consolidate super accounts. Consolidating super typically involves completing a transfer form to request your existing super funds transfer the balance to a new chosen super fund. Click here to find out more on superannuation rollovers.

ATO Form: Request to transfer whole balance of superannuation benefits between funds