If you’ve considered consolidating your super, you may think it’s as easy as choosing the fund with the highest existing balance and moving everything across. There’s actually more to consider, so to help you get the most value from your next Super account, here’s our top tips for what to look for, and how to switch.
Choose a fund that works for you
The first step is to look into the different types of funds on offer so you can make a measured decision on which one will suit you best. As we mentioned, the account with the biggest balance isn’t always the one that is going to drive the most value, or suit you best.
When you’re looking at a super account, here are some things you should consider:
- Fees: What type of fees does the account have, as these can vary across funds? Common fees you’ll incur include administration fees, investment fees and switching / exit fees – so check before you switch!
- Insurance: What insurance options does the fund offer? Death cover, disability insurance and income protection are key benefits of Super accounts you want to ensure are included.
- Beneficiaries: Does the fund provide adequate beneficiary options? Will it ensure your super is being allocated to the right people according to your wishes?
- Flexible investment options: Are there any limitations on how your money is invested or do you have the control to choose? ING Living Super, for example, has a customised option that allows customers to trade in shares and select what ASX 300 listed companies their super is invested in.
Assess your current fund
Before launching into switching your super, look at what’s working and what’s not in your current fund. Start your investigation by working out what kind of account it is – for example, a defined benefit fund differs from an accumulation account (if these are new terms to you, we’ve even included a short glossary below). So, before rolling over a defined benefit fund, take time to consider the benefits, especially on retirement. Keep an eye out for any exit fees that you may not have been aware of and take note of your funds’ performance and any beneficiary options that may be in place. Some funds have insurance policies included so this may need to be replaced elsewhere.
At the end of the day, it’s essential that you find a fund that is transparent and provides easy access to manage your account. ING Living Super allows you to check your super balance at any time, right next to your other ING bank accounts.
Open an account
Once you’ve done the research, found the right fund and understand the exit strategy, it’s time to open a new account with your chosen provider. With ING Living Super, all you need is five minutes. Alternatively, you can call an ING super specialist on 133 464, 8am-8pm Monday to Friday and 9am-5pm on Saturday (AEST/AEDT), just make sure you have your Tax File Number ready to go.
Tell your employer
While the groundwork is largely done by this stage, there are still a few minor steps to go through. To make the transition as smooth as possible from day one, keep your employer in the loop as they can often take some time to arrange for your contributions to be sent your new fund.
Rollover your super to your chosen fund
When it’s time to do the switching, you can do so online at myGov or with your old fund (who may also have an online process). If you’re rolling over into an ING Living Super account, you can speak to an ING Living Super consultant who will guide you through the process. ING Living Super’s RapidRollover functionality will cut out the paperwork as we will track down your existing super accounts for you to consolidate.
- Accumulation accounts: A super account in which contributions are invested by your super fund in your chosen investment options.
- Beneficiary: the person or people you nominate to receive your super in the event of your death.
- Defined Benefit Funds: A super fund that pays a final super benefit based on a formula taking into account your final salary and the amount of years you worked for your employer.
- Portfolio: Representative of the range of investments held within your superannuation account.
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