Last week you learnt about the essential ‘Lost Super Track’ process (LST).
A necessity as most Australians don’t know they have Super which is listed as Lost. All lost Super is owned by the Government. $14.4B in Australia alone.
This week you will learn the 7 things you need to know about consolidating.
Consolidating saves you fees and charges and can increases funds available when you retire. Most importantly it ensures your Super will never be ‘lost’ again.
7 things to know:
- Compare different funds. It’s not just who has the biggest return this year. What are the retirement benefits? Are you in a defined benefit fund? Can your employer contribute to your chosen Super fund.
- What industries do they invest in (do you want to be part of supporting that particular industry? You may be unpleasantly surprised)
- Your address and Tax file number ensure: the low tax rate, that you aren’t subject to extra restrictions on making contributions and your Super account is never again ‘Lost’ into the Government’s coffers.
- Complete a valid binding death benefit nomination immediately. Do it now. Who do you want your death benefit paid to? Many costly legal battles are launched over disputed Super entitlements once people have died. More about that fiasco in a future blog!
- What’s the maximum Super supplied life insurance you can have. Never accept the minimum offered. Your life insurance can be paid in full through your Super fund = increased cash flow in your family’s budget.
- What are the entrance and exit fees of your old and new Funds?
- You can nominate to use your own Super company when changing jobs. Your Super company will supply you with the codes and member numbers you need.
Finally as my dad would say… if it sounds too good to be true – it probably is. Steer clear of ‘Super Scams”. The tax man eventually catches up.
If you are consolidating your Super you can either ask Ben in our office to help – our independent Super Expert or take care of the steps below yourself:
As I mentioned last week tracking down your lost Super yourself will take time, patience and understanding. So too will consolidating them all into one Super fund.
Steps to move funds
- Choose one fund –Decide which super fund is best for you.
- Check your insurance cover– Make sure your level of insurance is appropriate.
- Open an account –If it’s a new super fund you will need a new account.
- Request all the details your employer will need to pay your Super into that new fund.
- Update your employer –Make sure they know where to pay your super, when it is to be commence and how to correctly identify you to the fund.
- Consolidate all your Supers into your new fund including all lost accounts. Complete legally required paper work for both the fund you are going to and leaving.
- Keep copies of every document, used registered mail and prepare to wait. Sadly many documents are ‘lost’ in transit during this process and it can set you back weeks.
To have Ben take care of the LST and consolidating of Supers for you call 1300 132 648 or email our Appointment coordinator Nerissa@thewealthcentre.com.au