How to consolidate super

Spreading your retirement savings across multiple super funds is a surefire way to increase your mental load and potentially raise your fees. If that’s your thing, more power to you. But for the rest of us, consolidating those superannuation accounts is probably the smarter move.

The process is super easy, so let’s just jump right in and learn how to consolidate your super!

The easiest way to consolidate your super is through your myGov account, which offers seamless consolidation functionality if you have more than one super account. Here’s how to do it:

1. Log into myGov. Navigate to the ATO. Log into myGov and go to the ATO section. If you don’t have a myGov account or haven’t linked the ATO, set up your account and link it first.
2. Locate the transfer option. Once in the ATO section, navigate to the main menu and hover over ‘Super.’ In the dropdown, click on ‘Transfer super.’ If this option doesn’t appear, it means you only have one super account.
3. Review and select. Next, you'll see your super accounts listed. Just pick the one you want to keep and the ones to transfer from. The ATO will handle the rest, moving your balances into the account you chose.

If you don’t have a myGov account or run into issues, you can use the ATO rollover form. It still lets the ATO conveniently handle the transfer for you, albeit with the extra step of filling out the form. Or, you can reach out to the fund you want to consolidate into, and they’ll help you with the process.

Consolidating your super into a single account can make managing your retirement savings easier and more efficient. Here’s why it might be worth considering:

• Reduce fees. Most super fees are percentage-based, so having multiple accounts won’t double your costs like many other sites would lead you to believe. However, if a portion of your fees is charged at a flat rate, you could end up paying that sliver twice. While it might seem small now, these costs can accumulate over time.
• Simplify management. Consolidating into one account makes it easier to track your super, monitor performance, and stay organised with less paperwork.
• Avoid lost super. Consolidating helps ensure you don’t lose track of smaller or inactive accounts.
• Streamline insurance. Older super accounts may have automatic insurance, leading to duplicate premiums. While recent laws aim to prevent this by removing insurance from inactive accounts and requiring opt-in for new ones, consolidating your super helps ensure you’re not paying for unnecessary coverage if any older accounts slipped through the cracks.

While consolidating your super can simplify management and potentially reduce fees, there are a few reasons you might choose not to consolidate:

• Insurance coverage. Consolidating might mean losing valuable insurance attached to older accounts. If you decide to keep the account just for the insurance, make sure it’s worth the fees. And don’t forget to remove the insurance from any other accounts.
• Investment options. While many funds offer a range of options—like growth, balanced, and ethical all within the same fund—they may not all be up to scratch. For example, if you’re happy with the growth option offered by your current fund but want to shift some savings into an ethical option that your current fund doesn’t offer or that isn’t up to par, you could consider transferring that portion to a new fund that excels in ethical investing.
• Fees and transaction costs. Super funds are prohibited from chagrin exit fees, but there may be other fees involved in closing one of your accounts such as buy/sell spreads that cover the cost of buying and selling assets during the transfer.
• Performance comparison. If you’re interested in trying out different investment strategies, you might keep multiple accounts to see how different approaches work for you over time.

Just be aware that these are somewhat niche cases, so if you decide to hang onto multiple accounts, just make sure you are comfortable with any duplicate fees and/or mental overhead required to keep them all.