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Ready to roll? Why you should consider consolidating your super.

Ready to roll? Why you should consider consolidating your super.

It’s not hard to roll over all your super into one account – and it could make a big difference to your retirement savings if you do.

If you don’t know much about super, it might seem like there’s a lot of admin and paperwork involved, especially when you change jobs. But if you’ve left it to your employers to take care of your super, you might have different super accounts for every job you’ve had.

What’s wrong with having multiple accounts?

It might not seem like such a big deal to have multiple super accounts. After all, it’s still the same amount of money, no matter how many super funds the money is spread across…right?

What you might not realise is that every super account charges different fees. So if you have three super accounts, then you’re paying three sets of fees.

Super funds may also provide death and total and permanent disability insurance cover, and the insurance premiums are paid from your super balance. Having separate insurance cover attached to multiple super accounts may mean you end up paying for extra cover you don’t need – and this may reduce your retirement savings over time.

The level of insurance cover required will depend on your own individual circumstances and each super fund has different exclusions which may apply.

If you choose to roll over your super into your Essential Super account, any cover you have with your other super funds will end, including cover for any existing illness or injury. Cover provided in Essential Super is not exactly the same as the cover you have with your other super funds. Please see the PDS for the terms that apply to cover in Essential Super, including what’s not covered.

What’s the alternative?

Rather than having multiple super accounts, you might want to roll over all your super into a single account. This is called consolidating your super.

By streamlining your fees and reducing your insurance premiums, you may end up with a larger super balance by the time you retire. What’s more, it’s much easier to keep track of your money when you change jobs or want to adjust your super investments.

Having a single account also means you can cut down on paperwork – or even eliminate it entirely. With your Essential Super account, you can also check your super balance online in NetBank, side by side with your other accounts.

Things to keep in mind

Consolidating your super definitely has its benefits, but there are a few things you should consider before you get started.

Firstly, which super fund is right for you? It might not necessarily be the most recent one you joined or the one where you have the most money. Have a look at all the fees, risks and benefits each fund charges and the different investment options they offer before you make a choice.

Secondly, you might want to make sure that the super account you choose also provides the right types and levels of insurance to protect your loved ones. It makes sense to consider whether you can replace any insurance cover that ends upon rolling over, potential costs for withdrawing from other super funds as well as any investment or tax implications. This is different for everyone – so if you’re not sure, it can help to speak to a financial adviser.

You should also decide which super fund you want your employer to pay your future employer contributions to and complete a Super Choice form if necessary.

It’s easy to consolidate your super into your Essential Super account. Simply log on to NetBank and give us your Tax File Number. We’ll then help you take care of the rest.

Things you should know: This article is intended to provide general information of an educational nature only. Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of interests in Commonwealth Essential Super ABN 56 601 925 435. This information is not financial product advice and does not take into account any person’s individual objectives, financial circumstances or needs. You should read the PDS for Commonwealth Essential Super and consider talking to a financial adviser before deciding whether to acquire or continue to hold this product. Download the PDS at commbank.com.au/personal/superannuation/essential-super.html, collect one from any branch of the Commonwealth Bank or call us on 13 4074 and we’ll post one out to you. Colonial First State is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (‘the Bank’). The Bank and its subsidiaries do not guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. An investment in Essential Super is subject to risk, loss of income and capital invested. Where we mention 'we' and 'us', we mean Colonial First State. Things you should know about insurance: Please download the PDS at commbank.com.au/personal/superannuation/essential-super.html for the terms that apply to cover in Essential Super, including what’s not covered. For example, a benefit won’t be paid for any illness or injury that existed in the three years immediately before the date your insurance cover commences, recommences or is increased (known as a pre-existing condition). Important things to consider before consolidating your super: Before consolidating your super, you should compare the costs, fees, risks and benefits of all your super funds and consider whether you can replace any insurance cover you may lose upon rolling over, potential costs for withdrawing from super funds as well as any investment or tax implications. You should decide which superfund you want your employer to pay your future employer contributions to and complete a Super Choice form if necessary.