With the Your Future, Your Super (YFYS) changes now in place, it’s worth thinking about combining all your super accounts into one.
What does it mean to consolidate your super?
Consolidating (or ‘rolling over’) your super means combining all your super from multiple accounts into one fund and closing your other accounts to save paying several sets of fees and help make it easy to keep track of your super.
Why would you have more than one super account?
If you’ve had more than one job, chances are you have more than one super account. Having multiple accounts can happen when you change jobs, and your employer joins you into a new fund (called their ‘default’ fund). Or, you could have an old account from a long-forgotten job. Either way, having multiple accounts could mean you’re paying multiple fees, and possibly insurance premiums, which could be eating into your retirement nest egg.
What’s consolidation got to do with Your Future, Your Super?
An important part of the YFYS changes is ‘stapling’, which began on 1 November 2021. It aims to reduce the number of super accounts you’ll have over your working life. Instead of having a new super account opened for you every time you change jobs, you’ll be ‘stapled’ to your current super fund which will automatically move with you from job to job.
But stapling only means that you won’t have a new account opened for you when you change jobs. It doesn’t automatically close or consolidate any existing accounts you may already have had before 1 November 2021.
Having one super account makes it easy to keep track of your super. Plus, you’ll only ever pay one set of fees and costs, meaning you’ll have more savings in your super account to invest and grow.
If Hostplus is your current super provider, you’ll most likely be stapled to us. And, unless you choose another fund in the future, we’ll follow you when you change jobs in the future too. This means you’ll continue to enjoy all the benefits of our competitive performance, flexible insurance offerings and the freedom to choose the investment option that best suits your needs.
However, if you have other super accounts, and would like to move these to your Hostplus account – which is known as consolidating your super – there are a few important things to consider before doing so.
Before you consolidate
1. Do a little research first.
Lots of people don’t pay much attention to their super and may think that all funds are the same. But they’re not. Find out what you can about the fund you’d like to roll into. Does it have low fees? Does the fund have a proven history of strong long-term returns? Does it offer competitive and flexible insurance cover that suits you, and does it offer investment options that meet your risk profile and preferences and that align with your values?
It’s important that you’re happy with your stapled fund and that it’s performing well and offers value for money. After all, this may well be the fund that your super contributions will be paid into over your working life (unless you decide to change it).
The YourSuper tool , set up by the government to help you compare funds, can also help.
2. Check the fine print.
When you’re ready to consolidate your super, check with your existing super fund(s) as to whether there are any fees or charges that may apply when exiting the fund, or if there’s any loss of benefits (such as insurance cover). If you have insurance cover with another super fund, you may be able to transfer that cover to Hostplus.
3. Consider obtaining advice.
Getting the right advice today could make a difference to your retirement. That’s why our financial planners are available face to face, via phone or video conference to help you take control of your future.
- Face to face retirement advice explores your complete personal and financial situation to help you maximise your retirement.
- Super advice is available via phone, video conference or online for contributions, insurance and investments within your Hostplus account at no additional cost.
Call us on 1300 303 188 or book a callback to make an appointment.
Prefer online? Explore SuperSmart.
It’s an innovative and interactive platform to get financial education and tailored advice* online to help supercharge your future. It’s exclusive to Hostplus members and available 24/7 via Member Online at no extra cost.
*Members with Term Allocated Pension, Lifetime Pension, Defined Benefit Pension, nil balances, non-standard investment options and some Maritime Contributory Accumulation members cannot access SuperSmart financial advice services.
How do you consolidate your super into Hostplus?
We’ve made consolidating your super easy. Simply log in to your Member Online account, enter the details of your other super accounts and we’ll help with the rest – and at no extra cost to you.
We’re here to help
If you have any questions about consolidating, or anything else about your super, contact us online or call us on 1300 467 875.
The information in this article is correct as at time of publication.
This information is general advice only and does not take into account your personal objectives, financial situation or needs. You should consider if this information is appropriate for you in light of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement (PDS), available at hostplus.com.au before making a decision about Hostplus. For a description of the target market, please read the Target Market Determination (TMD), available at hostplus.com.au/ddo.