News

Tips for Consolidating Your Superannuation

July 13, 2011 3:50 pm

Take as keen an interest in your super account(s) as you would your bank account. It’s YOUR money, don’t ignore it – take control. Here are some helpful tips on how to get on top of your super and make the most of it:

Track down all your superannuation funds:

Collect all your superannuation statements
Do a search on the Australian Tax Office website in the SuperSeeker section
Contact any previous employers to find out where they were paying your superannuation entitlement

Once you have found all your different superannuation funds and BEFORE you consolidate:

Calculate how much personal insurance cover you require i.e.:

  • Death cover,
  • Total and Permanent Disablement (TPD) cover,
  • Salary Continuance (aka Income Protection)

Things to consider when determining an appropriate level of insurance cover:

Death: If you were to pass away, how much money would you like to leave to your family to cover any personal debts and replace your income so your loved ones may financially continue life without losing everything you’ve worked hard to achieve?

Total and Permanent Disablement: If you were too sick or injured to ever be able to work again, how much money would you like to receive to cover any personal debts, make alterations to your home and provide a lump sum to replace your income (in conjunction with income protection insurance)?

Salary Continuance: If you are too sick or injured to work and run out of sick leave, how long before you feel financial pain? This will help determine your waiting period for income protection.

Decide which insurance policies you would like to hold within your superannuation fund. Generally, you can hold Death, Total and Permanent Disablement and Salary Continuance within your superannuation fund.

Compare your superannuation funds (and other super fund alternatives which may better suit your individual requirements) by carefully considering the:

  • Range of investment options
  • Investment returns (ensure you are comparing like-for-like assets)
  • Insurance held
  • Insurance premiums
  • Fees – management, investment, advice, admin, and member, etc
  • Any other features which may differ between the funds
    (Overall value, not cost, should be your main consideration)

Once you have decided on the which superannuation fund is most appropriate for you:

  • Make your investment selection (a key factor over time)
    Apply for your desired level of insurance cover
    Nominate your chosen benficiaries
  • Rollover (consolidate) your other funds into your chosen fund
  • only once your requested insurance cover is in place
  • Finally, if all this sounds too hard, feel free to contact us today to arrange a time to meet to discuss how we may assist you.

“This advice is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice. Prior to investing in any particular product, you should read the Product Disclosure Statement.”