Should you combine your super into one account?
26 October 2015
If you’re like most Australians, your total super wealth is probably spread across two or three funds. While this may not be detrimental to your superannuation outcome, there is a downside to having multiple super accounts.
You won’t pay multiple fees
Multiple super accounts often mean multiple funds charging you fees. This can add up to quite a lot over the years. For example, if you have four super funds and you pay them all $150 in fees as well as $100 in insurance each year – that’s $30,000 you’ve missed out on over a thirty year period!
You might also be paying insurance fees from your super for cover you no longer need. All of this is eating away at your overall super balance.
Your super can be simpler to manage
Having several superannuation accounts means extra time spent on paperwork and account management. If your super is all in one place, you only deal with the one provider.
You can keep track easily
If you’ve got several super funds, how do you know what they all add up to? It can be difficult keeping track of all your super when it’s spread across multiple accounts. Having one central super fund keeps your super neat and tidy, so you can see what your total balance is at any one time.
But which fund should you keep?
You don’t have to keep the superannuation fund your employer has set you up with, and it can be quite simple to combine your super into the account of your choice. Alternatively, you could open a brand-new account, such as a Suncorp Everyday Super account.
When choosing the super fund that you’ll keep, here are some useful things to keep in mind:
- Low fees are great, but as with most things (like wine or haircuts), cheapest isn’t necessarily best. Consider what quality and value your super provider is offering you.
- Some funds – including Suncorp – let you see your super balance in internet banking alongside your everyday bank accounts, which makes it easy to stay informed and know what your super balance is.
- Some super providers – including Suncorp again! – offer handy online functionality that lets you manage your super easily. This is a great way to keep your retirement savings on track.
- You can use an online super comparison tool to weigh up your super fund options. They’ll provide a rating based on fees and features of the fund.
Before making a decision about combining your super funds, you should consider the effect it may have on any insurance cover within your super, and other possible implications such as exit fees investment and tax issues. Make time to consult with your financial adviser about what’s best for you.
How to combine your super
Combining several accounts into one used to be so difficult it was hardly worth the bother. But not anymore – many funds now let you combine accounts online. With Suncorp, you can easily combine your super accounts online, plus you can access tools like SuperMatch to help you find lost super via the online member portal. SuperMatch lets you access the ATO database in real time and find and roll over any lost super accounts you have.
- 2 ways to recover your lost superannuation
- Who will benefit from your super if you don’t?
- Insurance through your superannuation: Take the time to understand your cover
Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product. For Suncorp Everyday Super you should read and consider the Suncorp Everyday Super PDS and Product Guide. For Suncorp Brighter Super, please read and consider the Suncorp Brighter Super Personal Super and Pension PDS or for Suncorp Brighter Super Business Super please read and consider the Suncorp Brighter Super Business Super PDS. Everyday Super, and Brighter Super are part of the Suncorp Master Trust (Fund) (ABN 98 350 952 022, RSE Fund Registration No. R1056655). Suncorp Portfolio Services Limited (Trustee), ABN 61 063 427 958, AFSL 237905, RSE Licence No L0002059 is a related body corporate of Suncorp Group Limited ABN 66 145 290 124. The products referred to are not bank deposits or other liabilities of Suncorp Bank (Suncorp-Metway Limited ABN 66 010 831 722) (SML) and are subject to investment risk including possible delays in repayment and loss of the interest and principal invested. SML is not liable or responsible for, and does not guarantee or otherwise support, Suncorp Everyday Super accounts. SuperRatings Pty Ltd (ABN 95 100 192 283, AFSL 311800)(SuperRatings) does not issue, sell, guarantee or underwrite Suncorp Everyday Super. Go to www.superratings.com.au for details of its ratings criteria.
Before moving your superannuation you should consider: any fees payable (e.g. for exit or withdrawal); where future employer contributions will be paid; whether current insurance entitlements will be retained or equivalent cover made available; and any other possible impact, e.g. to your investments or tax position.