When changing jobs, it’s a crucial time to take stock of your financial situation, and your superannuation should be a top priority. Your super is your nest egg for retirement, and managing it effectively during career transitions can significantly impact your future wealth. With the introduction of ‘super stapling’, your existing active super account now follows you from job to job, preventing the creation of multiple accounts and the erosion of your savings through unnecessary fees. This makes it more important than ever to be proactive and ensure your super is working as hard as you are in your new role.

The first major decision you’ll face is whether to stick with your current super fund or opt for your new employer’s default fund. It’s wise to compare the two based on several key factors.

  • Scrutinise the fees, as even a small difference can compound into a substantial amount over the long term.
  • Examine the investment performance and options available to ensure they align with your risk tolerance and financial goals.
  • Additionally, review the insurance cover provided, including life, total and permanent disability, and income protection, to see if it adequately meets your needs.

Don’t simply default to your new employer’s choice without doing your due diligence.

Once you’ve decided on the best fund for you, the next step is to consolidate your super if you have multiple accounts from previous jobs. Consolidating your super into a single account is a straightforward process that can save you a significant amount in fees and make your super much easier to manage. You can do this through your chosen super fund’s website or via the Australian Taxation Office (ATO) through your myGov account. Finally, you’ll need to provide your chosen super fund’s details to your new employer by completing a Standard Choice Form. This ensures your super contributions are directed to the right place from the get-go, allowing your retirement savings to grow seamlessly as you embark on your new career journey.

 

This article is general advice only and does not take into consideration your personal objectives, financial situation or particular needs. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.