Whether you’re approaching retirement or already there, consolidating your super can be one of the simplest and most powerful steps to strengthen your financial position. But surprisingly, many Australians either delay it or aren’t sure where to begin.
Why it matters is simple: having multiple super accounts can quietly erode your retirement savings. Each account may be charging its own set of fees and insurance premiums. Over time, that duplication can cost you thousands – money that should be working for your future.
But the benefit of consolidation isn’t just about savings fees. It also brings clarity. When all your super is in one place, it’s easier to track your balance, review your investment mix, plan contributions and make informed decisions about retirement income options. Whether you’re just starting to plan your retirement or you’re getting ready to draw an income, having everything in one fund makes life easier.
Another often-overlooked step is checking for lost super. It’s more common than you might think – especially if you’ve changed jobs, moved house, or changed your name at any point. According to the ATO, there are still billions of dollars in unclaimed super across Australia. A quick search using your myGov account can help reunite you with money you didn’t even know was missing (here’s how to get started).
Look before you leap
Of course, while consolidating your super is usually a smart move, there are some things to be aware of before you act:
- Check your insurance: If you have life or disability insurance linked to a super account, make sure you’re not losing valuable cover when closing it.
- Compare fees and investment options: Not all super funds are equal. Look at performance history, fees, and features before deciding which account to keep.
- Consider timing: If you’re close to retirement or planning contributions, check how consolidation might affect your strategy – especially if you are thinking of making concessional or non-concessional contributions.
Beyond the Basics: What else should you know?
If you’re aged 60 and over, or at Age Pension age (currently 67), and you’re sitting on more than one super account—or have already started an Account-Based Pension (ABP) – there are some common questions and myths that often come up in Retirement Advice Consultations.
Myth 1: “I need to keep an old super fund open just in case I want to contribute again.”
Actually, no. These days, opening a new super account is easier than ever—often done online in minutes. Unless you’re still working and actively contributing (e.g. via employer Superannuation Guarantee contributions), there’s no reason to keep a fund open ‘just in case.’ You can always reopen a fund later if your situation changes.
Myth 2: “I’m too old to make super contributions.”
Not necessarily. Many people aged 60 to 74 are still eligible to make large non-concessional contributions, using the bring-forward rule. If you’ve recently downsized, received an inheritance, or have money sitting in cash, this may be a great way to grow your retirement savings inside a tax-effective structure. It’s a widely underused opportunity. That might be because there are a few rules and requirements, so if you are unclear if this is a smart option for you, our team can help support your decision making in a Retirement Advice Consultation.
Myth 3: I’ve already started an Account-Based Pension so I can’t consolidate anymore.
You can’t combine two existing ABPs—but if you’ve still got a super balance in accumulation phase elsewhere, you can consolidate that into an ABP fund by starting a new one. The key is understanding how it interacts with your transfer balance cap and any Age Pension or tax implications. Strategy can make a huge difference here.
Myth 4: “I might lose insurance if I roll over my super.”
This is one to watch carefully. If your old fund holds insurance—especially life or TPD cover—you may lose it when consolidating. Check what cover you have, whether you still need it, and which options are available through your preferred fund before proceeding. You may be able to retain a minimum balance to maintain your insurance and rollover the rest.
Why now is the right time
The start of a new financial year is a natural checkpoint and a time when contribution caps are reset. You may be updating your income plan or checking Centrelink entitlements. It’s also the perfect time to streamline your finances—and you can start with your super.
Simplifying your super doesn’t just tidy up paperwork—it can help you:
- Better manage your retirement income drawdowns
- Track your investment growth in one place
- Cut down on duplicated fees and paperwork
- Make contribution planning simpler
The team at Retirement Essentials believes that good retirement planning should be simple and practical. If you haven’t yet brought all your super together – now may be the time to tick that box.
What about you?
Are you holding on to a super account you don’t really need?
Do you agree on consolidating your different accounts into one?
Have you taken full advantage of the new financial year to refresh your retirement strategy?
This article is provided by Retirement Essentials Representative Number: 001260855. We are an authorised representative of SuperEd Pty Ltd ABN 88 118 480 907 AFSL #468859. This information is not intended as financial product advice, legal advice or taxation advice. It does not take into account your personal situation, goals or needs and you should assess your own financial situation, consider if the information is suitable for you and ensure you read the relevant Product Disclosure Statement (PDS) if you choose to make any changes to your financial situation. It is always advisable to consult a financial adviser before making financial decisions.
The line about ‘it takes minutes to open an account’ is absolute rubbish. If you are disabled and cannot use a mobile phone, or you are smart and use the MUCH cheaper VOIP option for voice calls, you are DISCRIMINATED AGAINST because they make it mandatory to provide an expensive mobile telephone number, just to open an account online. Or if you are non binary, you cannot do it – they force you to change your gender to M or F !!! Or if you do not want to be automatically enrolled in their expensive insurance options and immediately pay them, you cannot enrol online. Or if you don’t want to BY DEFAULT have your details handed to vaguely-described ‘third parties’ for ‘marketing’ purposes, you cannot enrol online. They have vague notes saying ‘contact us later’ to change this…but good luck with that. They even insert a Title in your account WITHOUT YOUR PERMISSION. You are forced to do it by paper based methods…and one super fund we did this with took FOUR MONTHS to open our account…and only after we raised a formal complaint!!