How's your financial fitness? Part 2 - Consolidate your super
12 Mar 2021
If you’ve worked multiple jobs in your lifetime, you could have multiple super accounts. And if you have multiple super accounts, that’s money you’ve earned that may not be working for you.
Over the past few years, there’s been a big push from super funds and the Commonwealth Government to encourage people to consolidate their super. Back in 2018, the ATO said 64% of the population, or 10 million people, only had one super account. That’s an improvement on previous years, but still leaves a considerable number of Australians with multiple accounts, and over $11 billion of unclaimed super sitting with the ATO.
How to do it
Consolidating your super is simple.
- Visit the ATO website and register via your MyGov account.
- Choose the fund you want to transfer your money from (the “transferring fund”) and the fund you want to send your money to (the “receiving fund”) from the funds listed.
- To transfer amounts into your PSS account you will need the Unique Superannuation Identifier (USI) of the PSS fund, which is 74172177893001.
The funds should move into one account within three days.
What are the benefits?
Consolidating your super can save you a lot of things: namely, time and money.
You can save money because you’re not paying multiple sets of fees from your super fund. You can save time because each year you’re not having to deal with paperwork and administration.
And thanks to the magic of compound interest, the more money you have in one account, the more money it can earn.
Things to consider
Before you consolidate, there are a few things you should check and consider:
- Could I lose insurance cover (such as life insurance) from one super account when I roll it into another?
- Will I need to pay exit fees when I consolidate?
- How do I tell my employer and update my super fund details if I’m moving to a different fund?
Consolidating your super is an easy, uncomplicated step that can help eliminate extra work and strengthen your super balance.
You may want to talk to a financial adviser before choosing an investment option.
CSC’s authorised* financial planners provide a personal financial advice service. It’s a ‘fee for service’ advice, which means you receive a fixed quote upfront. There are no obligations, commissions or hidden fees.
To make an initial advice appointment with a financial planner call 1300 277 777 during business hours. To find out more please visit csc.gov.au/Members/Advice-and-resources/Financial-planning
*Our authorised financial planners are authorised to provide advice by Guideway Financial Services (ABN 46 156 498 538, AFSL 420367). Guideway is a licensed financial services business providing CSC financial planners with support to provide members with specialist advice, education and strategies.