changing jobs

Things to Consider When Changing Jobs and Superannuation

Guide to changing jobs and superannuation

There are some people who will end up spending most of their adult lives in the same job, working for the same company and even in the same role until they retire. These may be people who really enjoy their jobs, who feel secure in their job and even those who may be interested in changing jobs but are unable to find another job. On the other hand, there are also many people who will change their jobs at least once – often far more – during their adult working lives and this could be due to promotion and progression, wanting to change career or finding another job after redundancy.

No matter what your reasons for changing jobs, there are a number of things that you need to take into consideration when you move to another job. This includes thinking about your superannuation fund and the money that is accumulated within it. Some people forget to take action when it comes to their superannuation fund and others simply assume that arrangements will be made for a cheque to be sent out to cover this. However, when you change jobs you need to know what your options are and you need to take action accordingly.

Bendigo SmartStart Super

Bendigo SmartStart Super

SmartStart Super offers several investment options with low fees, including an authorised MySuper product.

  • Choose between two main ways to invest
  • Up to 14 different investment options
  • Rollover existing super online
  • Apply online in 10 minutes

    Compare super fund accounts

    Rates last updated November 19th, 2017
    Details Features
    AustralianSuper
    AustralianSuper
    • Admin fee:$78 p.a. + investment fee of 0.75% p.a. (Balanced option)
    • Past 3-year return: +9.23% (Balanced option)
    • Automatic cover: Death and Total and Permanent Disablement insurance
    • Choose from 12 investment options
    • Mobile app available
    • MySuper product available
    • Access education tools and programs
    Go to site More info
    Essential Super
    Essential Super
    • Admin fee: $70.56 + combined investment and admin fee of 0.80% (Lifestage option)
    • Past 3-year return: +5.75% (Balanced option)
    • Automatic cover: Death and Total and Permanent Disablement insurance
    • Choose from four investment options available
    • Manage your account in NetBank
    • Switch investments at any time
    • Consolidate super funds online
    Go to site More info
    Bendigo SmartStart Super
    Bendigo SmartStart Super
    • Admin fee: $98 p.a + indirect cost of 0.430% p.a (MySuper Balanced option)
    • Past 3-year return: +6.05% (MySuper Balanced option)
    • Automatic cover: Automatic Death and Total and Permanent Disablement insurance
    • Choose between two main ways to invest
    • Up to 14 different investment options
    • Rollover existing super online
    • Apply online in 10 minutes
    Go to site More info
    HESTA Super
    HESTA Super
    • Admin fee: $65 p.a + 0.08% of balance + annual investment fee of 0.81% p.a (MySuper)
    • Past 3-year return:+7.95% (MySuper)
    • Automatic cover: Death and income protection cover.
    • Choose from up to 11 investment options
    • No setup or exit fees
    • Industry fund so no commissions paid
    • Consolidate your super online
    Go to site More info
    ING Living Super
    ING Living Super
    • Admin fee: $60 p.a. + 0.64% of balance and investment fee of 0.25% p.a. (Growth option)
    • Past 3-year return: +7.26% (Growth option)
    • Automatic cover: Automatic Death and Total and Permanent Disablement insurance
    • Choose from four investment options
    • Invest in other Living Super investment classes
    • Earn interest on your SMSF balance
    Go to site More info
    Virgin Money Super
    Virgin Money Super
    • Admin fee: $58 p.a. + 0.394% of balance and investment fee of 0.116% p.a (LifeStage Tracker)
    • Past 3-year return: not yet available
    • Automatic cover: Death and Total and Permanent Disablement insurance
    • Choose from eight investment options
    • Consolidate super from your online account
    • Apply online in less than 5 minutes
    • Virgin Money will reward you with Velocity Points
      for contributions (Eligibility criteria + T&C's apply)
    Go to site More info
    Grow Super
    Grow Super
    • Admin fee: 0.95% p.a + $1.65per week
    • Past 3-year return: N/A as GROW Super is a new provider
    • Automatic cover: Automatic Death and Total and Permanent Disablement insurance
    • Choose from up to 13 investment options
    • Invest your spare change with the top-up feature
    • Consolidate your super online or via mobile app
    • Customise + self-select insurance cover
    Go to site More info

    The options when it comes to changing jobs and superannuation

    Within your superannuation fund you will have money that is made up of the superannuation guarantee along with earnings resulting from its investment and you may also have voluntary contributions that you have made. The money made up of the superannuation guarantee is generally preserved funds, which means that you cannot get at them until you either retire or under certain special circumstances. You might be able to make withdrawals on the voluntary contributions you have made – you should be able to work out the proportion of the eligible termination payment (which is the terms of the accumulated money in the superannuation fund) that is made of up voluntary contributions simply by checking the statement of termination payment. However, before you make up your mind with regards to withdrawing any money from your superannuation fund, it is advisable to check with a financial expert with regards to how this will affect your fund and finances in terms of tax.

    When you leave your present job and move to a new job you have a couple of options with regards to the money that is preserved towards your retirement. If you choose to, you can leave this in the existing superannuation fund. Alternatively, you can roll the accumulated funds over to another superannuation fund. If you decide to leave your funds in the existing superannuation fund and if you change jobs quite regularly, you could end up with a variety of different funds. Many people, particularly those who change jobs fairly regularly, prefer to roll over the funds to another superannuation fund, as this can be beneficial for a number of reasons. Some of the benefits of rolling over your existing super to another fund include:

    • Easier to keep track: It can be all too easy to lose track of your superannuation funds and money if you have a variety of funds all over the place as a result of changing jobs on a regular basis. Having just one fund to manage means that you will find it easier and quicker to keep track of your money
    • Lower fees: Due to the fees associated with superannuation funds, having a range of funds could mean that you end up paying higher or multiple fees. By having just one superannuation fund by rolling over the money from other funds, you can cut back on hassle and inconvenience whilst also cutting charges and fees
    • Reduced paperwork: Having just one superannuation fund rather than have a range of them means that you will not have to wade through lost of documentation in order to keep on top of your finances. You will only have to deal with one superannuation fund and you will only have one lot of paperwork that you have to read through
    • Increased manageability: You will find that having just one superannuation fund instead of a number of different, separate funds, makes it easier to manage and control your funding

    Things to consider when rolling over your super funds

    Whilst there are many benefits to rolling over your superannuation funds into one fund, there are things that you need to consider before you rollover your funds. This includes:

    • Checking whether your current superannuation fund will allow you to rollover from other funds
    • Whether you are able to move funds from your current super at a later time if you wish to do so
    • Whether there are any fees involved
    • What the implications of moving funds might be on tax or any insurance you have through your super
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    4 Responses

    1. Default Gravatar
      AlanNovember 25, 2015

      I live and work in Australia from April 1st 1968 to July 1972 do I have any pension claim.
      Thanks for your time.
      Regards
      A.Bethell

      • Staff
        ShirleyNovember 25, 2015Staff

        Hi Alan,

        Thanks for your question.

        This question is best directed at your employer at the time.

        Cheers,
        Shirley

    2. Default Gravatar
      OanhOctober 25, 2013

      After receiving the Super Choice Form, as Payroll Officer, list below what actions you need to take regarding superannuation.

      • Staff
        ShirleyOctober 28, 2013Staff

        Hi Oanh,

        Thanks for the feedback!

        I’ve emailed you a link regarding your comment, we’ve also scheduled and improvement for this page to include your ideas.

        Hope this helps,
        Shirley

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