How to Consolidate Super and Plan Your Retirement Timeline

Changed jobs a few times? There’s a fair chance you have more than one super account, and each one may be charging you its own fees. Knowing how to consolidate super is one of the simpler money jobs you can tick off, and most of it can be done online through myGov.

Before you move anything, though, it’s worth a quick check of what each account includes. Some accounts carry insurance you’d lose by closing them. Others might hold features that are hard to replace. And once your super is in one place, it’s a good time to look at how it’s invested and when you’ll actually be able to use it.

This guide covers the basics: why people consolidate super, what to check first, the four steps in myGov, how investment risk works inside super, and how to sketch out a simple retirement timeline. It’s general information to help you get organised. If your situation has a few moving parts, that’s where personal advice earns its keep.

Why consolidate super?

The main reason is fees. The ATO notes that holding more than one super account could mean paying multiple sets of fees and charges, which can reduce your retirement savings over time. One account means one set of fees and one balance to keep an eye on.

It also makes your super easier to track. Moneysmart estimates there’s almost $19 billion in lost and unclaimed super in Australia. Some of that belongs to people who simply forgot about an account from an old job. When you consolidate, you’ll see every account linked to your tax file number, including any lost or ATO-held super you didn’t know about.

Having everything in one place also makes the bigger decisions easier later on. It’s much simpler to review your investment option, your insurance and your contributions when you’re looking at one statement, not three.

What to check before you consolidate your super

Consolidating is usually straightforward, but it isn’t always the right move for every account. A few checks first can save you from closing something you’d want to keep.

Insurance. Many super accounts include life, total and permanent disability (TPD) or income protection cover. If you close an account, the cover attached to it may end. If your health has changed since you first took that cover out, getting similar cover in another fund could be harder. Check what each account holds, and whether you can transfer the cover before you roll the money over. If you’re unsure what you need, our personal insurance team can help.

Fees and performance. Compare the fees and long-term performance of the funds you’re choosing between. The ATO’s YourSuper comparison tool is a good starting point for MySuper products.

Employer contributions. Moneysmart points out that some employers contribute more to certain funds. If your employer offers extra contributions into a particular fund, check that you won’t lose them by moving.

Special features. Some older accounts, including defined benefit funds, can have features you won’t find in a standard account. Check the product details before closing one.

If any of these checks raise questions, it’s worth getting superannuation advice before you move your money.

How to consolidate super in four steps

Once you’ve chosen the account you want to keep, the quickest way to combine super accounts is through myGov.

1. Sign in to myGov and link the ATO. If you don’t have a myGov account, or haven’t linked it to the ATO yet, set that up first.
2. Review your super accounts. In the ATO section, go to Super. You’ll see the accounts linked to your tax file number, including any lost or ATO-held super.
3. Select Transfer super. Choose the account you want to keep and the accounts you want to roll into it. This option only appears if you have more than one account.
4. Confirm, then let your employer know. Submit the request and make sure your employer is paying contributions into the fund you’ve kept.

If you can’t use myGov, you can contact the fund you’re keeping and ask them to roll your other super in, or use an ATO rollover form.

Check how your super is invested

Consolidating is a good moment to look at how your super is invested, because many people never do.

Most super funds offer a range of investment options. These usually run from conservative options, which hold more cash and fixed interest, through to growth options, which hold more shares and property. As a general rule, growth options tend to rise and fall more in the short term, while conservative options tend to be steadier but may grow more slowly over long periods.

The right mix depends on things like how long until you need the money, how you’d feel if your balance dropped in a bad year, and what else you own outside super. Someone with 30 years until retirement is in a very different position to someone who plans to stop work in five.

If you’ve never chosen an option, your money is likely sitting in your fund’s default option. That isn’t necessarily wrong, but it was chosen for a broad group of members, not for you. Our investment advice is built around your goals and timeframe, so you know why your super is invested the way it is.

Build a simple retirement timeline

A retirement timeline doesn’t need to be complicated. Start with the ages that decide when you can use your super and when other support may kick in.

Your preservation age is the earliest age you can generally access your super if you retire. It depends on your date of birth:

According to the ATO, you can generally withdraw your super when you:

• reach preservation age and retire
• reach preservation age and start a transition to retirement income stream while you keep working
• turn 65, even if you’re still working.

The Age Pension is separate. You need to be 67 or older to be eligible, and income, assets and residence tests apply.

Put those ages next to your own plans. When would you like to stop full-time work? Would you rather ease out gradually? How many years sit between those dates? Once the dates are on paper, the next question is how much you’ll need to fund them. Our guide on how much super you need to retire is a good next read.

Frequently Asked Questions

What does it mean to consolidate super?

To consolidate super means moving the money from several super accounts into one account in your name. It’s also called combining or rolling over your super. Once the transfer is done, the old accounts are closed. The aim is to pay one set of fees, keep track of one balance, and make it easier to manage your super over time.

Should I consolidate my super?

For many people with more than one account, consolidating makes sense because it can cut duplicate fees. It may not suit you if an account holds insurance you want to keep, defined benefit features, or extra employer contributions you’d lose by leaving. Check each account before you move anything. If you’re unsure, a financial adviser can look at your accounts with you.

Does it cost anything to consolidate super?

There’s no charge to use myGov to transfer your super between funds. Some funds may apply transaction costs when you sell out of an investment option, so it’s worth checking the product disclosure statement for each account you’re closing. The bigger cost to watch for is losing insurance cover or other benefits that you can’t easily replace.

Can my partner and I combine our super?

No. Super accounts are held in individual names, so you can only consolidate accounts that belong to you. Couples can use contributions splitting, where one partner asks their fund to transfer up to 85% of certain before-tax contributions into their spouse’s account. Eligibility rules apply, and not every fund offers it, so check with your fund first.

What is my preservation age?

Your preservation age is the earliest age you can generally access your super if you retire, and it depends on when you were born. If you were born on or after 1 July 1964, your preservation age is 60. For earlier birth dates, it ranges from 55 to 59. It’s different from the Age Pension age, which is 67.

Ready to consolidate super with a plan behind it?

Bringing your super together is a small job that can make a real difference. You pay one set of fees, you can see your whole balance at a glance, and you’re in a better position to make the bigger calls about your retirement.

The steps themselves are simple. Check each account for insurance, fees, employer contributions and special features. Then use myGov to transfer super into the account you’re keeping. Once it’s all in one place, take a look at how it’s invested, and put your key ages on a timeline so you know when your super becomes available.

Where it gets harder is working out what those choices mean for you. Is your investment option right for your timeframe? Do you have the right cover in place? How much do you need to retire when you’d like to? Those answers depend on your circumstances, and that’s the work our advisers do every day.

If you’d like a second set of eyes before you consolidate super, or you want a proper retirement planning strategy built around your goals, book a chat with an adviser. You can also find an adviser near you across our Queensland offices.