How to change super funds in 4 steps

Is it easy to change super funds?

Yes! It may seem like a difficult task, but you'll be suprised how simple it is to switch super funds. In fact, your new super fund will do most of the work for you. The hardest part is probably choosing your new fund (we can help you with this) and then filling out some forms.

Step 1: Choose a new super fund

Look for a combination of low annual fees (ideally less then 1% of your balance), high long-term returns (10 year performance) and an investment strategy you understand and agree with. If you'd like a bit of help choosing, take a look at our best super fund picks.

Step 2: Join the new super fund

Download the new membership form from the fund's website, which will ask you for the following details:

• Your personal details including your full name, residential address, contact information and Tax File Number.
• Your employer's information including the business name, address and ABN.
• The insurance cover you'd like to include. Most funds will include automatic default death and TPD cover, but you can choose to add income protection cover, or you can opt out of all cover if you don't think you'll need it.
• The details of your nominated beneficiaries (this is who your super will go to in the event of your death).

"Before you switch funds, check if you've got any additional super funds open in your name you might have forgotten about. Just log into your myGov account online and click on the "Super" tab to see a list of funds in your name. You may choose to keep one of these funds instead of opening a new one."

Alison Banney

Editor

Step 3: Transfer your existing super

Once you've completed the new membership form, there will be another form asking if you have any super you want to transfer over. You'll be asked to provide the following details:

• Your existing fund's name and contact number
• The fund's ABN and USI numbers (you'll find these on your fund's website or on your last account statement)
• Your membership number and/or account number

The new membership form will have the details of where to send the completed form. Once you've submitted this, your new super fund will take care of the rest for you. If you've got more than 1 fund you'll need to submit separate forms for each.

Step 4: Tell your employer

You'll find another form on your new fund's website called "Employee super choice form" or "Pay my super into XYZ Fund". It'll be pre-filled with the details that your employer needs. Add your name and membership number, and give this form to your employer so they can start paying your super into your new fund.

Pros and cons of switching super funds

Pros

• Quick and easy. It's a relatively straightforward process to change funds.
• Potential to save. If you switch to a fund with lower fees and better long-term performance you have the potential to save thousands of dollars for your retirement.
• Find lost super. In the switching process you might find some old super funds you can consolidate to save on fees. Research has found around a third of super accounts are unintended multiple accounts.

Cons

• Some paperwork. No-one enjoys paperwork, and there are a few forms to fill out.
• Change in insurance. You'll lose your previous insurance cover and the it may be difficult to get the same level of cover with a new fund.
• Switch regret. If you're switching funds based off a single years' performance returns you may end up regretting your decision the following year. Make sure to only look at long-term performance when making a decision to switch.

Finder survey: Which super fund are Australians with?

The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.

*Past performance data and fee data is for the period ending September 2024

Frequently asked questions

• What will it cost to change super funds?

  It doesn't cost anything to leave a super fund, and there are no joining fees for opening an account with a new super fund.

• Will I need to pay capital gains tax when switching funds?

  No, not initially. When you roll over your super into another fund, the money stays within the super system (rather than being 'sold'). So any tax elements that apply will simply be rolled over to the new fund, and will apply when you eventually withdraw the money.

• Do I need to change super fund when changing jobs?

  No. When you start your new job, simply give your new employer your super fund details and they'll pay your super into your existing fund. Your super is yours, and will always be in your name, regardless of where you're working.

• Is switching super funds worth it?

  The small bit of effort required to change funds is extremely minor when compared to the cost of sticking with a high-fee, poor performing fund. The difference in fees might not seem like much over one year, but when compounded over 20, 30 or even 40 years, the difference really adds up. By switching to a fund that charges 1% lower fees than your current fund, you could potentially retire with thousands (or even hundreds of thousands) more in your super.

• How do I compare super funds?

  The main things to compare when choosing a new super fund are the fees and performance returns. With the fees, the lower the better, and with the performance returns the higher the better. For more help, you can read our detailed guide on how to compare super funds.

• How do I consolidate super funds?

  The 4 steps to consolidating your super funds are: locate your funds, choose your primary account, transfer your balance/s into the new account and update your employer.

• Can you have more than 1 super fund?

  There are a lot of superannuation funds in Australia and it's easy to have multiple funds. You can have more than 1 super fund, but it's not a good idea to do so. Having multiple funds means incurring multiple sets of fees, which is unnecessary and will eat into your retirement balance.

Ryan is the founder and CEO at Tribeca Financial, a financial advice firm that listens, learns and then gets you on track. He's an accomplished financial advisor and financial wellbeing coach with over 15 years of experience.

To make sure you get accurate and helpful information, this guide has been reviewed by Ryan Watson, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 626 Finder guides across topics including:

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