How to consolidate super

How to consolidate your super in 4 steps

Consolidating your super involves transferring the balance from multiple super accounts into a single fund.

The Australian Taxation Office (ATO) provides a straightforward online service through myGov.

1. Log in to myGov (or create an account).
2. Link your myGov account to the ATO.
3. Select 'Super' and then 'Manage'.
4. Select 'Transfer super' (this option only appears if you have more than one account) and select the account you wish to transfer your super into.

That's all there is to it!

What if you're consolidating your super into a new fund?

This scenario is little different but still very simple.

1. Choose a new super fund and join as a new member.
2. Complete the form to transfer your existing super into your new fund.
3. Update your employer so your super gets paid correctly.

For more help with this, you can read our detailed guide on how to change super funds.

Why should I consolidate my super?

There are a bunch of reasons why you should consolidate your superannuation, including:

• You'll save on fees. Super funds charge an annual fee as well as investment fees and additional indirect fees (this is the indirect cost ratio) for the ongoing management of the fund. Depending on your super balance and the kind of fund you have, you might be paying lots of fees, maybe even hundreds of dollars each year.
• You won't be paying for the same insurance twice. If you have more than one super fund, you could be paying for the same insurance, such as death and income protection insurance, more than once. Consolidating closes your old account and cancels any insurance attached to it, so check what cover you have in each fund and make sure you have replacement cover in place before you close it.
• It'll be easier to keep track of your super. Outside of the financial savings, having one super fund is much easier to keep track of than two or three, as there's less admin and paperwork to worry about. Plus, it's nice to know your retirement savings are all in the same place rather than scattered across multiple funds.

"When I was at uni I had a part time job that paid super. I then completely forgot about it, moved overseas and then many years later I came home and got a full-time job with a new super fund. I ignored the old one for years, because there wasn't much money in it. It took me five minutes to log into my new fund and consolidate the old one. Don't be like me. Combine your funds now and save on fees!"

Richard Whitten

Senior Money Editor

What's wrong with having multiple super accounts?

Consolidating your super accounts into one fund means you avoid paying multiple sets of fees. And it lets you concentrate (and grow) your retirement savings in one account.

Here's a quick overview of why having multiple accounts can be a problem:

• Unnecessary costs: Each super account carries its own fees and insurance premiums. Data shows that Australians have held 2 super funds over their lifetime on average and 10% have more than 1 active fund, so a number of us might be paying unnecessary fees. The Productivity Commission's 2018 report also highlighted that unintended multiple accounts lead to $2.6 billion in extra fees annually.
• Long-term financial impact: Having more than one super account can make it harder for your money to grow over time. This could mean you end up with less money saved up for when you retire. It is estimated that a worker with dual super accounts could face a 6% reduction in their retirement funds compared to having a single account.

These figures are from the Productivity Commission's 2018 report, and predate the "stapling" reform: since 1 November 2021, new employees are generally stapled to their existing super fund by default when they start a new job, so unintended duplicate accounts now mostly arise from job changes before then. Understanding these impacts highlights the importance of consolidating any existing multiple accounts. It's not just about reducing paperwork, it's about maximising your financial readiness for retirement.

What should I do after consolidating my super?

Consolidating funds is the first step to maximising your retirement wealth. The second step is to make sure the super fund you have is getting you a good return.

Review your fund's performance and focus on longer term performance figures, like the 10-year performance figure.

And look at the fees you're being charged. The total fees should be under 1.00% of your super balance.

If you think your fund is underperforming or overcharging you in fees, switch to a better fund.

Key considerations before consolidating your super

Consolidating your superannuation is a significant financial step. Before you start, there are a few important considerations including:

1. Understand fees
   • Check for any entry or deposit fees in the fund you're transferring to.
   • Be aware of exit or account-closing fees from the funds you're moving out of.
   • Evaluate all fees to ensure that the consolidation benefits outweigh these costs.
2. Consider insurance implications
   • Be aware of the potential loss of insurance benefits, like TPD insurance, in your current fund.
   • Explore if the new fund offers more suitable insurance options.
   • Ensure you maintain necessary insurance cover when consolidating super funds.
3. Employer contributions
   • Verify if changing funds will affect your employer's contribution rate.
   • Confirm with your employer about any changes in contributions to avoid reduced super accumulation.
4. Assess fund performance
   • Analyse the long-term performance (5–10 years) of the fund, not just short-term fluctuations.
   • Be cautious about chasing past performance, as it may not indicate future results.
   • Look for consistent performance for sustainable growth of your retirement savings.

Frequently asked questions

• How do I consolidate my super into a brand new fund?

  First you need to join the new fund, then complete a transfer form to roll your existing fund over into the new one.

  Then all you need to do is tell your employer to pay future super contributions into the new fund.

• Will I lose my insurance if I consolidate my super?

  Many Australians have life insurance or TPD insurance via their super fund. If you close a super fund you'll lose that cover.

  Before getting a new super fund it's worth checking what their life insurance cover is like, or considering a standalone life insurance policy.

• Is consolidating super a good idea?

  Yes! It's one of the first things you should do as early as possible to maximise your retirement wealth. Concentrating your super into one fund means paying fewer fees and concentrating your investment growth. It also makes it easier to manage your super.

• Will changing super funds affect my employer's contributions?

  Generally, no. Your employer is obligated to pay your compulsory super guarantee into whichever fund you nominate, so changing funds won't affect that. However, if your employer pays more than the minimum into a specific fund under an award or enterprise agreement, check with them before switching, as this could affect those extra contributions.

• How do I find my super fund via myGov?

  You'll need to log into myGov (or make an account) and then link your myGov to the ATO website. You can find your super funds through the ATO once you're logged in.

• Can I use Super Fund Lookup to find and consolidate my super?

  No. Super Fund Lookup is a public register of information relating to super funds, like their ABNs, USIs and compliance status. It's a register you can use to verify if a super fund is legitimate. But it doesn't list information about customer balances.

Written by

Alison Banney

Editorial Manager, Money

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Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 599 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living