Thousands of Australians have more than one superannuation account (super fund) – meaning more fees and less interest. Knowing how to find lost super accounts and then consolidate multiple accounts into a single superannuation account is certainly worth your time. By taking a moment to combine your multiple accounts, you’ll be putting more money in your pocket when you retire.
Multiple super accounts are common
So how do so many taxpayers end up with lost super?
Generally, employers have their own preferred superannuation fund. If a new employee starts and doesn’t nominate their own fund then that employer will likely set up a superannuation account with their own preferred fund. Then, a few years later the employee starts a new job, and the above process starts all over again.
Before you know it ten years down the track you could have 3 or 4 or even more superannuation accounts.
Why is it important to find lost super?
This one is simple… to put more money in your pocket at retirement time!
Take the time to find lost super and save
yourself big $$$ in the future.
Each superannuation provider will charge an administration fee which is a fee or percentage to manage your money. The more super funds you have, the more fees you’re paying and the less money you’ll have when you retire.
Find your lost super
Lost Superannuation Search
If your superannuation fund has not been able to contact you and hasn’t received any regular contributions over the past five years, then they will report you as a lost member.
To check if you fall into this category, you can use the Australian Government ‘Lost Superannuation’ free search service to find lost super.
Please note, this is a limited search and only provides information on “lost super” or “ATO held super”.
Contact the ATO for detailed information
To do a full check of your super you’ll need to contact the ATO directly. There are a number of options for ATO assistance and they can provide you with a full search on all super accounts in your name.
If the ATO tells you that you’ve got multiple super accounts or you find lost super you weren’t even aware of, you should consider consolidating these accounts.
How to consolidate your lost super or multiple super accounts
Option 1: Let your chosen provider handle the transfer
With your signed approval, your preferred superannuation provider can contact any other superannuation fund that you have money with and ask them to transfer it into your preferred account.
Option 2: Do it yourself via the ATO
If you want to take care of it yourself you can so via myGov. You’ll need to designate another superannuation account – the one you’ve decided to stick with – prior to proceeding.
Before you move funds:
Before you make the decision to move your lost super, we recommend seeking the advice of a qualified financial planner who can help you determine:
- If any termination or exit fees apply on the account you’re transferring from.
- Whether you have any existing insurance included on the account you’re closing.
- That your current employer is able to pay/contribute to your preferred fund.
Your superannuation is crucial to you – it may be the only money you retire with, so getting it organised, properly invested and well managed should be a priority.
Spending some time to find lost super or consolidate multiple super accounts might take you a little bit of time now, but in the long term you’ll see the benefits and more money available to you when you retire.
Source: Etax
