The easy way to consolidate your super

Posted on 06. Dec, 2010 by in Financial Planning

Finacial Planning Superannuation ConsolidationWhy get it sorted? If your super is lost, tracking it down may give you certainty about how much you have and how it is performing. If your super is spread across several funds, consolidating it into one fund can reduce your paperwork.

Of course, there’ll be some paperwork along the way, and you’ll need to put aside some time to think about your situation – perhaps meet with your financial adviser.

Remember, it’s your hard-earned money and your future that is at stake, and decisions you make today can make a big difference years from now.

 

So let’s get started

If you have super funds from previous employers (and many working Australians do) then you could be paying unnecessary fees and insurance premiums on those funds. Combining all your previous super funds into one can make it easier to track, easier to manage and review whether your savings are working hard for you.

 

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 fret, you are not alone. It’s estimated that around one in two 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 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 super fund suits you best?

Once you’ve tracked down all of 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 it or you have replaced it before closing the account.

If you’re unsure about Superannuation Consolidating or need more guidance, it’s important that you speak to your financial adviser.

Source | Colonial First State

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