New year, new job?

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Just because you're changing jobs doesn't mean you need to change your superannuation account.

But if you start a new job and don’t ask your new employer to make your super guarantee contributions to your existing super account, they may open a new super account for you and make your super guarantee contributions to that account instead.

That means you’ll have at least two super accounts with two sets of paperwork and may have to pay multiple sets of fees. And the more accounts you have, the more fees you may have to pay.

Having one super account could help you save money and avoid the hassle of trying to manage multiple super accounts.

Want to take your super account with you?

It’s your money and, often, it’s your choice. When you start a new job, generally you don’t have to automatically accept your new employer’s default super fund. If you are eligible, you can tell them where you’d like your super to go. Check first if your new employer allows you to ‘choose’ your own super fund – some employers may not offer this option.

Before you make a decision, it’s worth comparing the features, fees and benefits of your current fund with your new employer’s fund to see which fund is best for you. You should also check whether any exit fees will apply if you close your super account in your current fund or if you will lose other benefits such as insurance cover.

If you prefer to stick with your current fund and your new employer permits this, then all you need to do is fill out the Standard Choice Form to ask your new employer to make your super contributions into this fund.

Or if you prefer to switch to the new employer’s fund, you can ask your existing super fund to transfer – or roll over – your savings into the new fund. Whatever your decision, you’re in charge.

A little extra legwork now could save you time and money in the long run. And it could put you in a better position to reach your long-term investment goals and enjoy a comfortable retirement.

Have you left it too late?

If you’ve already changed jobs but forgot about super, don’t worry. It’s never too late to consolidate, by bringing your super together into one account. If eligible, you can exercise choice of fund at any time[1].

Do you have any ‘lost’ super?

Like many Australians, you could have more money lying around in old super accounts. It’s all too easy to lose track of your super accounts, particularly when you’re starting out in the workforce in casual or part-time jobs.

And every time you’ve changed jobs, you’ve probably started contributing to a new fund. Fortunately, there’s an easy way to find your lost super. The Australian Taxation Office’s SuperSeeker is a secure, convenient service designed to help you keep track of your super, including finding your lost super. There’s more than $17 billion[2] in lost super – some of this may be yours.

Like to know more?

If you’d like to know more about how to keep your existing super account when you change jobs, call us on 02 9299 9777, and we’ll help you get started.

What is the super guarantee?

Employers are obliged to make super guarantee payments into eligible employees’ super accounts. The current minimum amount is 9% of employees’ ordinary time earnings. This is set to rise to 12% over the next seven years.

In the early days of super, you didn’t have much say over where your super was invested. But these days it’s different. Choice of fund and portability rules mean your super future is in your hands.

What is choice of fund?

Most working Australians can choose which super fund their employer super contributions are paid into. Once you’ve chosen a fund, your employer has up to two months to begin making your super payments to your chosen fund.

What are the portability rules?

Portability rules allow you to transfer your superannuation account balance between funds.

[1] There are limited circumstances in which your employer is not required to accept your ‘choice’ form.

[2] ASIC. Find unclaimed money. moneysmart.gov.au/tools-and-resources/find-unclaimed-money

What you need to know

Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. If you decide to purchase or vary a financial product, your financial planner, our practice, AMP Financial Planning Pty Ltd and other companies within the AMP Group will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. You can ask us for more details.

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