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The benefits of consolidating your super
If you’ve had a few jobs over the years, it’s possible that you’ve got a few different super funds with small balances in each. It’s easy to forget all about them until the annual statements arrive, but the sudden influx of paperwork can often leave you feeling dazed and confused.
The Australian Securities and Investment Commission reports that there are billions of dollars sitting in unclaimed or “lost” superannuation accounts as at 1 January 2017, with thousands more accounts added to the list each month. Inactive accounts with balances of less than $6,000 are transferred to the ATO, so if you think you might have some old superannuation accounts, don’t hand it over the government, claim it!
This year, instead of ‘filing’ your statements in the bottom drawer and forgetting all about it until next year, take the plunge and consider consolidating your accounts. That way, you’ll be saving fees, reducing your paperwork, and making it easier to keep track of arguably one of the most valuable investments you’ll ever make – your retirement savings.
Here’s a few steps to get you on your way:
Choose your fund – talk to us so we can sit down and help you decide which super fund is best for you.
Check your insurance – before you start closing your accounts, we can help you make sure your insurance needs are covered in your chosen fund.
Advise your employer – make sure your employer knows where to pay your super guarantee contributions – speak to your payroll or HR about any paperwork they may need from you or your fund.
Rollover your other accounts to your chosen fund – you can do this online through the myGov website, or you can transfer your super by using a form and sending it to your chosen fund. Some funds have an online process for combining your super too, so it’s a good idea to check what’s going to be easiest.
Visit the Super Seeker service at www.ato.gov.au or via your MyGov account at www.my.gov.au for more info. As always, we’re here to help you so if you’d like to talk this though, give us a call.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of M3’s position and are not to be attributed to M3. They cannot be reproduced in any form without the express written consent of the author.