Australians are spoilt for choice when it comes to super funds, but not all perform and charge equally. Here is the process if you are considering moving to a new fund.
Whether you have years or decades until retirement, your choice of super fund has the potential to affect how much you’ll have in your nest egg when you get there.
Super funds can vary greatly in terms of their fees and investment returns, as well as in their insurance offerings, the premiums their members pay and their level of service.
Fortunately, it’s now fairly easy to compare funds and see how yours stacks up. A simple search through the Australian Taxation Office’s YourSuper comparison tool shows how much different funds charge each year and what their recent performance has been like.
Keep in mind, how a fund has performed in the past doesn’t determine how it will perform in the future. A number of factors dictate performance, including markets, the level of risk and the investment manager’s expertise.
If you do a comparison and decide you’d like to switch to a new fund, the process is straightforward.
1. Find the fund you’d like to switch to and fill in an application
Go to the fund’s website and download its application form. Usually, you’ll be asked for some information, including your residential address, your Tax File Number (TFN), your employer’s details and whether you’d like insurance through your new super fund.
You’ll also find a link to the Product Disclosure Statement (PDS), which explains the key features of the fund, including its fees.
2. Get super moved from one account to another
If you want to move all your super into your new account – which will mean one set of fees – you need to fill in a rollover form with your new fund.
Generally, your new super fund will do the heavy lifting in terms of moving your super from your existing account to your new one after you’ve completed the form.
You’ll need the details of your existing fund, including your membership number and the fund’s ABN and USI number. You can usually find your member or account number on past letters or emails from the fund, while the ABN and USI can often be found on the fund’s website.
3. Tell your employer
To make sure your compulsory super contributions (SG) end up in the right place, you’ll need to tell your employer you’ve moved funds. Usually this just involves giving them a form with the new details. Some super funds have a downloadable form on their site.
After a few weeks, your new super details should be available in MyGov, which provides a record of recent contributions and your overall nest egg.
Remember, changing super funds can also alter your insurance coverage. If you have questions about how this would affect you, you can speak to your fund or a qualified financial adviser.