A superannuation rollover is the process of transferring from one super fund to another. You may need to rollover your superannuation to consolidate multiple super funds which may have come about from working at multiple jobs and needing a new home for finding lost super. Consolidating superannuation with a rollover has a few advantages:
Consolidating your super
- You can easily keep track of the fees that you pay. Various super funds typically charge multiple administration fees which could leave you with a much smaller retirement benefit. Rolling over your various super funds into one fund saves you unnecessary fees.
- You can keep track of your money more easily. Rolling over your super in one fund makes it easier to administer your financial health.
- By consolidating your wealth in the one super fund, you can take advantage of the power of compounding returns
Superannuation rollovers are extremely easy. Most super funds will provide a Transfer Authority Form and one form should be completed for each previous fund you wish to rollover. The Transfer Authority Form will provide your previous super fund with a standard letter of compliance to confirm that the new fund is an eligible super fund and will issue the instruction to your previous super fund to commence the transfer of your super money into the new fund. Though most funds will accept another fund’s Transfer Authority Form, you may also need to complete a withdrawal form from the previous fund. The rollover process may take up to 30 days to complete and your receiving super fund will let you know when the transfer has been received.
Choosing the right fund
The important thing to consider before commencing rollovers is selecting the best super fund that will suit your needs. 2020 DIRECTINVEST provides DIY investors with the tools necessary to make the right decision when it comes to choosing a super fund. Click here to research our broad range of super funds
|Things to watch for when you withdraw or roll over - Colonial First State|