We all know the festive season is a time for giving and a time for sharing, but could it also be the time of tidying?
As the year draws to a close, we seem to be doing everything from tidying our work desks before heading off for a relaxing break, to tidying up after the seemingly endless string of Christmas parties. So it makes sense that this could also be the perfect time for people to tidy up their superannuation.
It’s a common story. People change jobs over the years and a new job can often bring a new super account. You say you’ll get around to consolidating into one fund, but time goes by and before you know it you’re receiving multiple super statements and possibly even paying multiple administration fees.
There are a few advantages to consolidating your super into one fund.
- Save money – Paying just one set of fees and charges could save people money. With one fund, people pay one set of fees instead of several.
- Save time – Consolidating makes managing super easier. One fund means one set of paperwork to keep track of, and more time for people to do the things they want to do.
- Maximise your investment – Having money in one fund could mean people are better placed to manage their super’s investment strategy and asset allocation.
It’s important to do some research before deciding whether or not to consolidate super funds.
A good place for people to start is to contact their funds and find out what their current benefits are, and what will happen if they transfer their money to another fund. They should also make sure they find out if they’ll be charged transfer, withdrawal or exit fees.
People can then compare the fees and investment options available in their main fund to those in their other funds. People should include all fees that may be charged when they transfer.
If people’s current funds provide them with insurance cover, they should find out what will happen to the cover when they transfer. By checking and comparing the levels of cover in their new fund they can ensure they are still happy with the overall cover provided.
Armed with this information, people are then in a good position to decide whether it’s best for them to transfer or not.
The process might seem daunting but in fact most superannuation funds make consolidating or “rolling over” superannuation into one fund very easy. In most cases, people need to provide their chosen fund with the details of their other super accounts, and the fund will do the rest of the work.
A small “tidying” job now could make a significant difference to people’s retirement funds in the long-term.
If you’d like to know more, or if we can help you just give us a call or drop us a line. We’ love to hear from you.