This can be a good way of combining super at the same time as submitting forms to join the fund.Before making a decision to combine your superannuation, you should consider any penalties such as exit fees, change to insurance cover or loss of benefits that may apply and, if necessary, consult a qualified financial adviser.The easiest way to find your other fund details is by reading your super account statements.All super funds are required by law to provide you with an annual member statement following the end of the financial year on 30 June, but some funds may send statements every six months or on a more frequent basis.If you’re self-employed and wish to claim a tax deduction for personal super contributions, you must lodge a notice of intent to claim a tax deduction with your original fund, before you combine your super into another fund.
According to the Australian Taxation Office (ATO), more than 6.3 million people, or 45% of the workforce, were unaware that they hold multiple super accounts in 2016 – and are therefore very probably incurring more than one set of fees.
In fact the ATO’s database shows that 1.2 million people are members of three or more super funds.
New research from the Association of Superannuation Funds Australia (ASFA) in November 2016 has found that more people than ever before are consolidating their super, showing that industry campaigns are working.
In fact, the number of people with more than one super fund has halved since October 2013.
In October 2013, approximately 33% of the survey respondents had more than one superannuation fund because they hadn’t got around to consolidating them yet.
If you have multiple super accounts, then you can avoid paying multiple fees which eat away at your future savings.