How to consolidate super

How to consolidate your super

Consolidating your super involves transferring the balance from multiple super accounts into a single fund. This process not only helps you keep track of your retirement savings but can also have a significant impact on the growth of your super balance over time.

The Australian Taxation Office (ATO) provides a straightforward online service through the myGov platform, allowing you to easily transfer your super balances.

If you want to consolidate your super into one of your existing accounts:

1. Log in to myGov (or create an account)
2. Link your myGov account to the ATO
3. Select 'Super' and then 'Manage'
4. Select 'Transfer super' (this option will only appear if you have more than one super account) and select the account you wish to transfer your super into

If you want to consolidate your super into a new super fund:

1. Choose a new super fund and join as a new member
2. Complete the form to transfer your existing super into your new fund
3. Update your employer

For more help with this, you can read our detailed guide on how to change super funds.

Why should I consolidate my super?

There are a bunch of reasons why you should consolidate your superannuation, including:

• You'll save on fees. Super funds charge an annual fee as well as investment fees and additional indirect fees (this is the indirect cost ratio) for the ongoing management of the fund. Depending on your super balance and the kind of fund you have, you might be paying lots of fees, maybe even hundreds of dollars each year.
• You won't be paying for the same insurance twice. If you have more than one super fund, you could be paying for the same insurance, such as death and income protection insurance, more than once. Consolidating your super means you will still be covered but you’ll save on your insurance costs.
• It'll be easier to keep track of your super. Outside of the financial savings, having 1 super fund is much easier to keep track of than 2 or 3, as there's less admin and paperwork to worry about. Plus, it's nice to know your retirement savings are all in the same place rather than scattered across multiple funds.

"When I was at uni I had a part time job that paid super. I then completely forgot about it, moved overseas and then many years later I came home and got a full-time job with a new super fund. I ignored the old one for years, because there wasn't much money in it. It took me 5 minutes to log into my new fund and consolidate the old one. Don't be like me. Combine your funds now and save on fees!"

Richard Whitten

Editor

What's wrong with having multiple super accounts?

Consolidating your super accounts into one can help avoid paying multiple sets of fees and enhance your retirement savings. If you've had several jobs, you might have multiple super accounts, leading to paying redundant fees and reducing your super returns.

Here's a quick overview of why having multiple accounts can be a problem:

• Unnecessary costs: Each super account carries its own fees and insurance premiums. Data shows that Australians have held 2 super funds over their lifetime on average and 10% have more than 1 active fund, so a number of us might be paying unnecessary fees. The Productivity Commission's 2018 report also highlighted that unintended multiple accounts lead to $2.6 billion in extra fees annually.
• Long-term financial impact: Having more than one super account can make it harder for your money to grow over time. This could mean you end up with less money saved up for when you retire. It is estimated that a worker with dual super accounts could face a 6% reduction in their retirement funds compared to having a single account.

Understanding these impacts highlights the importance of consolidating your super funds. It's not just about reducing paperwork, it's about maximising your financial readiness for retirement.

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Key considerations before consolidating your super

Consolidating your superannuation is a significant financial step. Before you start, there are a few important considerations including:

1. Understand fees
   • Check for any entry or deposit fees in the fund you're transferring to.
   • Be aware of exit or account-closing fees from the funds you're moving out of.
   • Evaluate all fees to ensure that the consolidation benefits outweigh these costs.
2. Consider insurance implications
   • Be aware of the potential loss of insurance benefits, like TPD insurance, in your current fund.
   • Explore if the new fund offers more suitable insurance options.
   • Ensure you maintain necessary insurance cover when consolidating super funds.
3. Employer contributions
   • Verify if changing funds will affect your employer's contribution rate.
   • Confirm with your employer about any changes in contributions to avoid reduced super accumulation.
4. Assess fund performance
   • Analyse the long-term performance (5–10 years) of the fund, not just short-term fluctuations.
   • Be cautious about chasing past performance, as it may not indicate future results.
   • Look for consistent performance for sustainable growth of your retirement savings.

Remember, the goal is to improve your super balance by reducing costs and streamlining fund management without compromising on essential benefits like insurance and employer contributions.

The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.

*Past performance data and fee data is for the period ending October 2024

To make sure you get accurate and helpful information, this guide has been reviewed by Ryan Watson, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 625 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living