Shouldn’t You Consolidate Your Superannuation Funds?

Have you tried to get your superannuation funds in order before, but thought it was too hard?

While it takes a bit of time and paperwork, the effort may be worthwhile.

Why get it sorted? If your superannuation is lost, tracking it down may give you certainty about how much you have and how it is performing. If your superannuation 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 an xLife financial adviser.

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

So let’s get started. The sooner you finish, the sooner you can get back to all those other things you’d really rather be doing. If you have superannuation 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 superannuation 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 superannuation?

If you already know where your superannuation 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 1 in 2 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 superannuation fund suits you best?

Once you’ve tracked down all your old superannuation, you need to decide which superannuation fund best suits your personal circumstances.

Before consolidating your superannuation, 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. And if you still have insurance with a past fund, make sure you don’t need or at least replace it before closing the account.

You’ll find a lot of useful information, such as details of the costs, additional fee rebates or insurance benefits and risks in each fund’s Product Disclosure Statement (PDS) and latest annual statement.

If you’re unsure about consolidating or need more guidance, it’s important that you speak to one of our financial advisers.

Which superannuation funds are you with?

38% of Australians admit to having between two and five super accounts and over 6% said they didn't have the faintest idea how many they actually had.

To make it a bit easier for you, we’ve listed some of the superannuation funds available in Australia, perhaps these names might jog your memory and help you find your lost superannuation.

• AMP Flexible Lifetime Super
• Australian Reward Investment Alliance
• AustralianSuper
• Construction and Building Unions Superannuation
• Emergency Services and State Super
• First State Superannuation Scheme
• HESTA Super Fund
• HOST-PLUS
• MLC The Employee Retirement Plan
• QSuper
• Retail Employees Superannuation Trust
• State Super (NSW)
• Sunsuper
• UniSuper

How do you consolidate your superannuation accounts?

If you decide you’d like to combine your previous superannuation balances into one fund, you need to notify each of your past superannuation funds.

If you’re unsure which superannuation fund you should consolidate your funds into, xLife can help. Our fully qualified Superannuation Financial Advisers can offer you unbiased advice, taking into consideration your personal situation. We can also take care of all the paperwork for you, giving you a fuss-free option in managing your superannuation affairs.

It may take your past fund up to 30 days to make the transfer. Don’t be put off! It’s your hard-earned money and it’s worth the effort to get it all in one place.

Contact xLife today on 1300 135 205 or click to request superannuation advice.

Get your first Superannuation Consultation FREE!
Talk to a Specialist Superannuation Adviser on 1300 135 205 about growing your superannuation today!

January 2010