Mozo guides

How to consolidate super

Blocks stacked on top of each other. One section is red and the other is blue to show super consolidation

Part of the onboarding process when you start a new job typically involves filling out a superannuation choice form. And as you go through different employers throughout your career, it’s possible that you’ll join several super funds along the way. 

If so, you might be finding it challenging to manage a few different funds at once, and could be thinking about consolidating your super.

Is it worth consolidating super?

If you’re debating whether or not to consolidate your super, it’s good to think about what your retirement objectives are. For instance, you could ask yourself if having a good insurance cover is your main priority, or if it’s gaining a better return on your super investments. 

Alternatively, you might look to consolidate your super in a fund that’s more applicable to the field of work you’re in. For example, if you previously worked in retail but are with a new employer that has a designated super fund, you could be hopping from a retail super fund to a corporate super fund.

Why you might consolidate your super

Here are some reasons to consolidate:

  • When you have a few super accounts, you’ll likely have to pay management fees for all of them, which can eat into your retirement income. 
  • It may be easier to keep track of one super fund rather than several, as everything is kept in one place.
  • There’s less paperwork, meaning you won’t necessarily have to spend as much time going over documents (like fund reports, for instance).
  • You no longer work with a company that has a preferred fund, and you’re choosing to consolidate into a super fund that’s more applicable to your current employment.

The decision to keep all of your super in a single fund could be due to a number of things, however the same could be said about having multiple super accounts.

Why you may have ended up with a few super funds

People are standing in colourful circles and walking as they have multiple super funds

Let’s have a look at some reasons why you might have multiple super funds:

  • Perhaps you’re unsure whether to consolidate as it might mean that you lose out on your insurance cover with a particular super fund.
  • It’s possible that you’ve decided to maintain a larger range of options when it comes to selecting your super investments by having multiple super funds. 
  • You may not have been able to transfer super using your myGov account if your super provider doesn’t allow outward, or accept inward transfers. This might occur if the transfer you’re making doesn’t meet the rules of your super fund, for example. 

You could have some lost super, which is money that’s sitting in a fund you might have forgotten about.

Checking for lost super

If you’re not sure whether you have lost super from say, a previous employer, you may be able to locate this through your myGov account. And if you have this linked to the ATO, you should be able to see all of your super funds including those that are held by the ATO for you.

It’s worth checking whether you have any lost super, as this money could be used to support you in retirement. 

Now, if you’re thinking of consolidating your super, there are some things you may want to first prepare.

Preparations to make before consolidating super

Have you decided to consolidate? Before you make this move, there are a few things to consider. For instance, it’s worth checking your employer contributions because this amount can change depending on the fund you’re with. 

Additionally, it’s a good idea to have a look at your insurance cover as you can potentially lose these benefits by changing super funds

But if you’re planning to go ahead with consolidating your super and are joining a new fund, you may want to gather some documents such as:

  • Your tax file number (TFN)
  • Details about the super provider you’re leaving. For example, this might include your account number, the fund’s name, Australian business number (ABN), and unique superannuation identifier (USI).
  • The address of your employer, along with the business name and number. 

Then, before joining a fund, it’s vital that you read the product disclosure statement (PDS) before making any decisions. This document can usually be found on the super provider’s website, and will outline some important details about the super fund. By reading and understanding these terms, you can make an informed decision as to whether or not you’d like to proceed with a prospective fund.

Steps for consolidating super

Man is walking down some steps as he is going through the process of consolidating super

When consolidating, there are some steps to take:

Step 1 (optional): The first thing you’ll want to do is fill out the form of your chosen super provider to join a fund (unless you’re already a member). 

Step 2: Your next step is to make all of your transfers. There are a couple of ways to do this, but the easiest way is to login to your myGov account, click on the ATO tab, and select super. From there, you should be able to manage and transfer your super fund. 

Note that if you can’t find your super fund listed when attempting to make this transfer, it’s possible that your fund doesn’t allow for transfers. 

Step 3: Wait for the balance to hit your new super fund. It usually takes a few days for the transfer to be processed.

Step 4: Now, it’s time to inform your employer. This step is important because generally speaking, your employer will make contributions into your super fund. If you don’t let them know, they will probably make contributions into the fund you no longer use.

So now that you know how to pool your super together into a single fund, you could be looking to find out what else you can do to manage your super.

Know how super works

From various super investment strategies to different fund types, the world of superannuation is large. 

Before consolidating your superannuation, consider potential fees and how it may affect your current benefits, such as insurance. We recommend you consider seeking financial advice.

If you wish to claim a tax deduction for personal super contributions, you must lodge a notice of intent to claim a tax deduction with your original fund before consolidating your super into another fund. 

So if you’re not sure how to manage your fund, it’s worth reaching out to a financial advisor for another perspective as they can help you come up with a solid plan to sort out your finances for retirement.

Enjoy learning about super? Have a browse through our superannuation guides hub to find out more about things like how superannuation can fit into your retirement planning to what an industry super fund is.

Consolidating super FAQs

Which super fund should I consolidate into?

The best super fund for you will depend on your needs, as everyone’s situation is different. In saying that, speaking to a financial professional can be helpful in giving you this insight, along with doing your research to find a super provider who is the right fit for you.

Is there a limit to the number of super funds that I can be a member of?

There is no cap to the number of super funds you can be a member of. However, if you believe you may have more super accounts than you’re aware of, you can find out the full list by logging into your myGov account.

How much super can I keep in one fund?

While there isn’t currently a maximum amount of super you can keep in a single fund, there is a minimum of $6,000 you’ll need to have in order to keep the account active. 

Sophie Wong
Sophie Wong
Money writer

Coming from a background in financial services and criminology, Sophie strives to get others excited about their money journey as they reach their financial goals. She aims to make things like budgeting a fulfilling achievement rather than a dreaded task.