How To Change Super Funds

22.08.2023 0 Comments

How To Change Super Funds

How do I change from one super fund to another?

How To Change Super Funds – To change super funds, you will need to complete a superannuation rollover, withdrawal or transfer form (depending on the terminology used by the super fund). Such a form can be found on the website of the super fund you plan on leaving, or the super fund you would like to transfer your balance to.

  1. It is often better to contact the super fund that you plan on transferring your balance to, as they will handle much of the transfer for you and are likely to complete the transfer quicker and more efficiently, because they want you as a member of their fund as soon as possible.
  2. A super fund that you are leaving might not be so helpful.

If you plan on closing your super fund in full. You can use this ATO form, instead. Once completed, it can then be sent to the super fund you are changing out of. This form cannot be used for partial rollovers, only for full balance transfers and subsequent closure of your non-preferred super fund account.

Can you easily change super funds?

Change to Australian Retirement Trust – If you want a super fund that is committed to returning profits to members, not shareholders, switch to Australian Retirement Trust. Yes, you can usually change super funds in Australia, unless you work in an industry that requires you to use one particular super fund.

You can ask your employer if you’re unsure. If you have to keep your account with a particular super fund, you can still join a new fund and just transfer your balance when your employer contributes to your old fund. However, this could mean you’d be paying fees with two separate super funds, so it’s worth checking whether the benefits you would get from switching would outweigh the cost.

Changing Super Funds? Here Are 5 Risks You Must Know.

Yes, you can. If you’ve got more than one super fund, you can move your balance from each of them to your new fund. You can do this in if you’re with Australian Retirement Trust, or you can use the ATO’s rollover tool in, No – super funds are not allowed to charge exit fees as a cost for you to leave their super fund and switch to a new one.

However, some super funds do have other fees or tax implications when you switch super funds, such as a buy/sell spread fee when they cash out your investment. So it’s worth calling them to check before changing super funds. You also need to remember that it may still cost you if you don’t switch super funds.

If your current super fund has high fees and/or poor performance, you may end up with less money at retirement than if you had switched to get lower fees and better performance.

  1. Before you switch super funds, make sure there are no fees or tax implications for leaving your current super fund.
  2. Consider if the timing is right and whether you’ll be missing out on pension options.
  3. You also want to make sure you won’t be without insurance during the switch to your new fund.

If you’re currently on claim through the insurance included with your super account, you can still switch super funds. But before switching, you should check with your super fund or your financial adviser about whether to leave some money with that fund to ensure you remain covered in the future.

Yes, you can – but this will close your Defined Benefit account, and you usually can’t reopen it after you switch. Our Defined Benefit account has a number of pension options and other benefits that most other super funds cannot match. So you might want to get about whether you’d be better off with your defined benefit or an accumulation type super fund.

There are both pros and cons to changing super funds: It’s easy, and you can do it all online. Fees or taxes may apply when you leave your current fund. Take the chance to compare super funds and look for lower fees and higher returns, or for other benefits.

Your new fund might offer less insurance (if you want it) or put more conditions on insurance for new members. Switching to lower fees now can mean you have more money when you retire. A small number of employers only pay to their chosen super fund, so you might need to check that first. You can search for any lost super or money with other super funds and bring all your savings together.

Your new fund might have educational seminars or offer financial advice that can help you make the most of your super. Compare us Find out why Australian Retirement Trust is a great choice for your working years and beyond. Move your super If you’ve switched here, log in now and bring your super balance over into your new account. Tell your boss Make sure your payroll team or your boss knows your account details for Australian Retirement Trust. The right choice today could make a big difference to your future. : Changing super funds | Superannuation | ART

How hard is it to change super funds?

Go to the ATO portal, then go to the ‘Check Super’ menu. If your new account has registered with the ATO (this could take some time), a ‘Transfer super’ menu option will appear. You should be able to use this to consolidate your super funds. Ask your new super fund to consolidate the other funds for you.

How do I change my super Australian super?

You can change how your account is invested in your other AustralianSuper investment options by making an investment switch request in your account online. If you have a super account, you can also change how any new contributions to your account are invested.

Can I transfer from one fund to another?

Rules for Switching Mutual Funds – Before switching mutual funds in a portfolio, investors need to understand the relative income-generating capacity of the switched fund and the mutual fund switch rules. Evaluation and revaluation of the portfolio are crucial. Here are some rules you should keep in mind before going ahead with the switch:

Investors can switch their mutual fund investments within the same fund scheme or a different one. Some basic rules for switching within the same fund scheme include fulfilling the minimum investment criteria, bearing the burden of exit loads and taxes on capital gains, etc. Inter-fund switching is possible by selling the existing fund scheme and applying for redemption. The IT Act rules that capital gains attract taxes, and those from mutual funds are subject to short and long-term taxation on capital gains. Equity funds attract 15% taxation for short-term gains and 10% for long-term gains.Moreover, some mutual fund schemes like Equity Linked Savings Scheme have lock-in periods of 3 years. This indicates that investors cannot switch from these accounts before that.

Can I have 2 super funds?

Why choose Australian Retirement Trust? – There may be reasons for having more than one super account, but in general multiple super accounts could mean multiple fees, more paperwork and more of a chance of losing track of your money. That’s why consolidating your super into one account can be a smart choice.

  1. Not only could you be reunited with your lost and unclaimed super, but combining multiple accounts can be an important step in growing your long-term super savings.
  2. We’re a fund that works for you, not shareholders.
  3. Whether our members are starting out their working life, already retired, or somewhere in between, we’ll guide them to help ensure they’re secure, confident and protected.

We’ll leverage our size and scale to be a force for good to make our members’ world better, seeking out investments to guard and grow their savings and retirement income. With a proven record of strong performance, our returns that have beaten the industry average over 1, 3, 5, 7 and 10 years.5

Which super fund is the best in Australia?

Top 10 super funds for 2022-23 revealed

  • “Performance over the last 12 months has been a welcome result for our members and follows a multi-year program of reorienting the portfolio towards areas of competitive advantage,” he said.
  • “Our shorter term performance is explained by our positioning in equities and bonds, however our dedicated investment team remains firmly focussed on delivering longer-term investment outcomes to members.”
  • SuperRatings executive director Kirby Rappell said funds with higher equities exposure generally outperformed those with more unlisted property this year, and members invested in index funds did especially well.

“We observed funds reviewing and writing down their unlisted asset valuations at the end of the financial year, contributing to the moderately weaker annual performance of funds with significant exposure to these assets in FY23,” Mr Rappell said. HESTA’s indexed growth fund was the top-performing passive balanced option for the year, with returns of 12.5 per cent, followed by Rest and Hostplus’ offerings, which delivered 12.4 per cent and 12.3 per cent respectively. But super fund members needed to focus on long-term performance, Mr Rappell added, which benefited from heavy unlisted asset exposures. The biggest industry super funds, which typically invest 30 per cent to 40 per cent of their portfolios in unlisted assets, dominated for 10-year returns in their balanced options. Super SA’s sustainable balanced option followed with 12.1 per cent. Industry heavyweights UniSuper and Aware Super’s ethical funds also performed well with returns of 11 per cent and 10.9 per cent respectively.

  1. But Mr Rappell said investors should remember that super was a long-term investment and most ethical options were “still relatively new in superannuation terms”.
  2. He said members should also brace for more ups and downs in their super funds’ returns next financial year, mirroring warnings by superannuation executives earlier this month.
  3. “Since the onset of the COVID-19 pandemic, managing volatility has really come back into focus for funds after almost a decade of steady gains,” he said.
  4. “The sharp rise in inflation and global uncertainty has been a constant over the past couple of years, and we expect this to persist.”
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Analysing seven-year returns in balanced options when adjusted for volatility, CareSuper had the most reliable option, according to SuperRatings. It delivered 7.5 per cent for the period. : Top 10 super funds for 2022-23 revealed

How much does it cost to manage a super fund?

How much does it really cost to run an SMSF? Morningstar Investor users sign in, Guidance from ASIC previously stated that balances above $500,000 allowed the flat fee administration to make sense. Research now calls for a revision of this threshold to balances over $200,000. Article Page URL has been copied to clipboard for sharing. Until recently, the Australian Securities and Investments Commission (ASIC) stated that the average yearly self-managed super fund (SMSF) running cost was $13,900—a figure hotly contested by practitioners.

  1. The impact of this significant fee was that the financial regulator also cautioned against establishing an SMSF with less than $500,000.
  2. SMSFs with balances below $500,000 have, on average, lower returns after expenses and tax compared to industry and retail super funds,” a 2019 ASIC fact sheet said.

This had flow on effects, including many financial advisers being extremely cautious about setting up SMSFs for clients with less than $500,000. However, research commissioned by the SMSF Association from the University of Adelaide has recommended a revision of this guidance to balances above $200,000.

This revision gives advisers more confidence to set up SMSFs above this lower range and may encourage self-advised investors to self-manage sooner. The results of the research using data from more than 300,000 funds concluded that the investment performance of SMSFs with balances of more than $200,000 were able to compete with much larger funds.

In December 2022 ASIC updated its guidance, stating balance size is ‘only one consideration of many’. Industry bodies including the SMSF Association long refuted the eye-watering fees that ASIC had tied to SMSF administration. Data from the Australian Taxation Office has provided some vindication for these criticisms.

  1. The latest SMSF data from 2019-2020 show that median operating expenses for an SMSF is $4,000 including deductible and non-deductible expenses such as the approved auditor fee, management and administration expenses and the SMSF supervisory levy.
  2. The SMSF Association’s former chief executive John Maroney  as “a far more realistic assessment of what it costs to operate an SMSF”.

“Previous analysis relied on the use of averages that ignored the significant distortions caused by large SMSFs and funds choosing to use borrowings and buy extensive administrative, insurance and investment services,” he said. Contrasting to operating expenses, the average total expenses of funds in the 2019-2020 financial year were $15,308. Median expenses by expense type, 2019-2020. Source: ATO SMSFs are not independent creatures that can be left to graze. They need constant monitoring, maintenance, administration, and trustees need to keep up to date with market and regulatory changes. An ASIC factsheet stated that on average, their SMSF.

Although the balance at which an SMSF makes sense may have lowered, investors must consider if they are up to the challenge of the obligations that come with managing their retirement savings. I recently wrote a checklist on how to know when you are ready for an SMSF, Industry practitioners concur with the lower cost estimates provided by the ATO data.

“Drawing an average cost between all my clients, I budget the operating expense for an average size SMSF of $750,000 to be around $6000,” said Jonathan Lee, chief operating officer of private wealth and corporate advisory services firm Solomons Group.

  1. Lee advises trustees to “pick your accountant wisely” with accounting fees ranging from $2000 to $6000 for the same amount of work.
  2. He suggested a balance of “at least $700,000” was necessary for an SMSF to be a superior option to an industry or retail fund.
  3. SMSFs are complex and definitely not for the fainthearted.

Fees are also highly variable depending on how much professional services the SMSF trustee has to obtain,” he said.However, while the cons include onerous reporting and other requirements for trustees, the benefits of SMSFs include flexibility in investing in direct assets and alternative investments, together with a high degree of control.

And with the ATO now providing some more detailed data on operating expenses, those contemplating their own SMSF can now make a more accurate assessment of the likely costs together with the benefits. Article Page URL has been copied to clipboard for sharing. © 2023 Morningstar, Inc. All rights reserved.

Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This report has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or New Zealand wholesale clients of Morningstar Research Ltd, subsidiaries of Morningstar, Inc.

  1. Any general advice has been provided without reference to your financial objectives, situation or needs.
  2. For more information refer to our Financial Services Guide at,
  3. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest.

Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. A healthy couple entering retirement can expect at least one of them to live for 30 more years. What do the 30-year asset performance charts say. The quarterly Morningstar Superannuation Survey focuses on fund performance, total fees (including investment and administration), and net assets of. Claims of an impending fall are not supported by the data, and older trustees are investing even more. The AI gold rush involves some familiar tech giants. Should investors be worried about over-exposure to this theme? Here are five tips to help you better manage your retirement savings. In this episode, we discuss the considerations for retirees in high inflation environments, and what they can do to combat it. : How much does it really cost to run an SMSF?

Can I transfer my Australian super overseas?

Australian residents/citizens – If you’re an Australian permanent resident or citizen heading overseas, your super remains subject to the same rules, even if you are leaving Australia permanently. This means your super must remain in your super fund/s until you reach preservation age and are eligible to access it.

How often can I change my super investments?

Future super contributions – You can request to change the way your future contributions are invested once daily. If you make multiple switching requests in one day, only the last request before the 4pm AEST/AEDT (Melbourne time) business day cut-off will be applied. When you make a change, any future contributions made into your account will then be invested according to your new investment choice. If you request your switch before 4pm AEST/AEDT on any business day, we’ll invest any future contributions in your new choice(s) effective at the start of the next business day. If you requested your switch at or after 4pm AEST/AEDT on a business day, or on a weekend or public holiday (national and the Victorian King’s Birthday holiday), the switch will become effective after 2 business days. A business day is any day other than a weekend or public holiday (national and the Victorian King’s Birthday holiday). AEST/AEDT refer to Australian Eastern Standard Time and Australian Eastern Daylight Time as observed in Melbourne, Victoria, Australia. During daylight saving, the AEDT cut off applies to all transactions.

  • You can change your income payment strategy as many times as you want to, whenever you want to. We’ll just need to receive your request at least 5 business days before the next scheduled payment.
  • If you are registered with Member Direct investment option, changes to the way you invest, including cash transfers, need to be requested through Member Direct. Important information about making these types of changes can be found in the Member Direct Guide below,
  • How many times can I transfer funds?

    How Do I Know If I’m About to Go Over My Bank’s Savings Account Transfer Limit? savings account transfer limit Some banks limit how often you can transfer money out of a savings account. Exceeding the allowed quota of transfers via ATM, electronic bill payment or other methods could result in being charged a fee, having your savings account changed to a checking account or even having the account closed.

    1. For a long time, banking regulations required financial institutions to follow the six-transfer limit to make sure the banking system had enough ready money to function properly.
    2. That rule was changed in 2020 but some banks still cap the number of monthly withdrawals.
    3. For help with banking or other money questions, talk to a,

    Savings Account Basics are the most basic kind of bank account and represent many people’s first exposure to the financial system. They are simple and safe. Designed to help people accumulate funds for long- and medium-term financial goals, deposits to savings accounts earn interest and also feature protection against loss provided by the,

    Savings accounts may be called other things, such as passbook accounts and statement savings accounts and money market deposit accounts. However, in keeping with their intended purpose of simply accumulating funds, savings accounts by any name are generally straightforward and offer only a limited set of features.

    Savings accounts are oriented toward providing uncomplicated security rather than facilitating transactions as other such as do. Basic savings accounts generally don’t offer check-writing capabilities or debit cards, for instance. You can withdraw some or all your funds from a savings account any time you want, but it’s not as easy as it is with a checking account.

    • If you’re ready to be matched with local advisors that can help you achieve your financial goals,,
    • What Are Savings Account Transfer Limits? savings account transfer limit accounts have long allowed depositors to make only six transfers out of the accounts each month.
    • Exceeding the six-transfer limit could result in being charged a fee or having the account changed to a checking account, which usually meant not earning interest any longer.
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    Sometimes an account that went over the limit might even be closed. Depositors could always get their funds and only certain types of transfers, called convenient transfers, were affected. They included debit card transactions, transfers from a computer or mobile device such as a phone, transfers and overdraft transfers to a linked checking account.

    1. In-person and at a bank branch as well as phone transactions requesting a paper check weren’t limited.
    2. Why Savings Accounts Have Transfer Limits The original reason for transfer limits was a rule called Regulation D issued by the,
    3. This rule was part of the Fed’s system of imposing reserve requirements on banks.

    Reserve requirements force banks to keep a certain percentage of deposits rather than lending out all the money received from depositors. Reserve requirements help maintain stability in the banking system. In 2019 the Fed decided to move to a different approach to managing the monetary system that affected the reserve requirements.

    As part of this change, it dropped Regulation D. The change was announced and became effective in 2020 and at the time the Fed also explained it as a way to make it easier for depositors to handle the financial stress and bank branch closings associated with the by having easier access to their funds.

    As a result of this change, many banks dropped the limit and now allow unlimited transfers from savings accounts. Some banks describe the change as temporary, but the Fed has indicated it has no plans to reinstate Regulation D’s. Savings deposit customers who want to be able to make unlimited withdrawals from their savings accounts can identify banks that will accommodate them by checking the banks’ account terms.

    However, while banks were allowed to drop the six-transfer limit, they were not required to eliminate it. And many banks kept the limit, as well as the fees, account conversions and closings for violators. Banks’ explanations for maintaining the now-optional limit are similar to those underlying the original rationale for the Fed’s imposition of the rule.

    That is, it helps them maintain adequate reserves and ensure that should a lot of bank customers suddenly want to withdraw their funds, the money would be there. The Bottom Line savings account transfer limit Transfer limits may keep customers from making more than six transfers out of their accounts during a month.

    This is changing, as the financial industry reacts to a federal rule change that eliminated a long-standing cap on savings account transfers that was intended to maintain the stability of the financial system. But some banks still impose the limit on many types of transfers, charging fees, converting savings accounts to checking accounts and even closing accounts when customers do too many transfers.

    Tips for Banking

    A financial advisor can provide you with insight into banking regulations and how they might affect your financial plan. Finding a financial advisor doesn’t have to be hard. matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals,, To find a savings account you’ll like, take a look at SmartAsset’s evaluation of the nation’s top bank savings offerings. This assessment looks at interest rates, deposit minimums, fees and other features to help you identify a savings account that is just what you need to save for emergencies, retirement, a home down payment or any other goal.

    Photo credit: ©iStock.com/Hirurg, ©iStock.com/whitebalance.oatt, ©iStock.com/Yaroslav Olieinikov The post appeared first on, : How Do I Know If I’m About to Go Over My Bank’s Savings Account Transfer Limit?

    Is it good to switch mutual funds?

    Should you switch to a high-performing mutual fund? – When the mutual fund schemes in your portfolio are giving low returns, you might feel the temptation to switch. You may think that it is better to invest in the ones recording higher returns at the time.

    Is 2 million in super enough?

    Is $2 million enough to retire at 60? We get this question a lot because of our focus on high net worth retirement planning and it’s an important question to ask; particularly in 2023 and going forward. Yes, for some people, $2 million should be more than enough to retire,

    1. For others, $2 million may not even scratch the surface.
    2. The answer depends on your personal situation and there are lot of challenges you’ll face.
    3. As of 2023, it seems the number of obstacles to a successful retirement continues to grow.
    4. From outpacing inflation to keep up with the rising costs of goods to weathering one of the worst bond markets in history, making your $2 million last seems to be getting harder and harder.

    Research shows that the fear of outliving retirement savings is one of the biggest concerns crippling pre-retirees and new retirees alike. Even with a free cheat sheet to guide you, keeping up with the latest strategies to make your $2 million last in retirement is hard.

    1. Free Download: 15 Free Retirement Planning Checklists to Help Make Your $2 Million Last But, the significance of making sure $2 million is enough to retire becomes even more important at age 60.
    2. Why? With improvements in healthcare, people are living longer.
    3. That means you’ll need to plan for at least 30 years or more of sustainable portfolio income.

    Even worse, social security benefits may only cover 20-40% of your income in retirement, And many smart retirees delay taking social security until age seventy to maximize benefits. SPECIAL NOTE FOR INDIVIDUALS AGED 50+ WITH OVER $1 MILLION: Tying your $2 million portfolio to your retirement and tax plan can be hard.

    If you are interested in learning how we can help fully integrate taxes, investments, and retirement income planning, click here for a free retirement assessment, Get more ideas than you thought were possible. As a result, your annual income need from your $2 million portfolio can be much higher from age 60 to 70.

    At least until you start taking social security. So, while two million dollars may seem like a lot, there are many hurdles to jump over in retirement to make sure your money lasts the rest of your life. In this article, you’ll find out if $2 million is enough to retire based upon different income needs.

    1. How to Stress Test a $2 million Portfolio With Monte Carlo
    2. Summary of Case Study Results
    3. Case Study 1 – $3,000 Monthly Income Withdrawal
    4. Case Study 2 – $4,000 Monthly Income Withdrawal
    5. Case Study 3 – $5,000 Monthly Income Withdrawal
    6. Case Study 4 – $6,000 Monthly Income Withdrawal
    7. Case Study 5 – $7,000 Monthly Income Withdrawal
    8. Conclusion

    Here’s a powerful infographic with the results in case you want to skip the in depth analysis below. But, keep in mind that there is a big difference between knowing “if” you can retire vs. actually knowing “how” to make your money last in the first place. To help avoid costly investment mistakes in retirement, be sure to read our comprehensive guide on how to invest in retirement.

    Is Australian Super a good super fund?

    Investing for you – Super is your money, and it’s important to invest in ways to help it grow. As Australia’s largest super fund, managing more than $288 billion with over 3 million members 5, we’re ranked as one of the top 20 largest pension funds globally 6,

    Can I rollover part of my super to another fund?

    How to rollover your super – the right way! On the surface, rolling over your super fund seems easy. You just send off a rollover form or do it via MyGov and bada bing, bada boom – you’re done! But unfortunately, there is a bit more to it than that. You see, there can be implications, serious implications, of rolling over your fund.

    • Worst of all, once the rollover has been finalised, you can’t go back.
    • So today I want to take you through the process, from start to finish, and cover off the key points you should be considering.
    • Prior to rolling over Prior to implementing any rollover, there are a few things you need to check.
    • Firstly, your insurance cover.

    You may have Life, Total and Permanent Disablement (TPD) and/or Income Protection within your existing super fund. If you rollover your balance, this is likely to cancel any cover your currently have in that fund. Of course, you can apply for replacement cover with your new super fund, but obtaining the cover is not guaranteed! An application for replacement insurance may be rejected due to medical or occupational reasons.

    1. Or you may be offered cover, but on terms that aren’t as good as you currently have with your existing insurance.
    2. There are some group insurance policies out there that can be accepted without going through medical underwriting, however this is not a failsafe! If you go to claim on a group insurance policy, they typically underwrite you at time of claim.

    This means the cover can be put in force, but you may not get paid out because of a pre-existing injury or condition. Typically, I prefer a policy which is medically underwritten upfront, and I ALWAYS get the cover in force prior to cancelling an old insurance policy.

    1. Prior to rollover you also want to consider if you have made any member contributions into your super fund which you intend to claim a tax deduction for.
    2. If you do, you need to lodge a notice of intention to claim form PRIOR to rolling out.
    3. Once you have rolled over your balance, you cannot go back and make a lodge a notice of intention to claim form retrospectively.

    If you are on the top marginal tax bracket and you make a $27,500 contribution, this could potentially be an $8,800 mistake! Then it is also prudent to also consider what you are losing by leaving your current fund. There are some super funds out there which have pretty unique benefits.

    For example, take GESB West State Super. This is unique in that it is an untaxed fund which gives you access to the untaxed plan cap. West State Super is closed to new members so if you were to close your current West State Super account, you aren’t able to reopen itit’s gone for good! There are also a number of defined benefit super funds out there which can be very beneficial in certain circumstances given that they are not market linked.

    Rolling out of a fund like this is going to interrupt the defined benefit calculation and you may lose out substantially in the long run. Now I am not suggesting that you should never roll out of West State Super or a defined benefit fund, you may have valid reasons for rolling over, but you need to consider the implications first.

    • There are also some employment contracts which offer you incentives to be with a particular fund.
    • For example, sometimes employers match your extra contributions up to a certain level or sometimes they will help cover fund expenses and even insurance premiums.
    • The extra benefits you receive with being in a specific fund may outweigh any benefit you could potentially get by rolling over.
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    Thankfully, it is becoming less likely that your employer is linked with a particular fund and this something that ASIC provides pretty clear guidance on. I do believe that superannuation should be portable for everyone so everyone has the choice to choose the fund they believe will best serve their needs.

    1. Finally, if you are considering rolling over an account based pension, just be aware that if your pension commenced prior to 1 January 2015 the Centrelink treatment of your pension will change.
    2. Prior to this date, pension accounts were assessed based on a deductible amount.
    3. Post 1 January 2015, pension accounts are now deemed.

    Rolling over will switch you to deeming which may be unfavourable from a Centrelink perspective meaning you could get less government assistance. Opening up the new fund Once you have investigated all of the benefits associated with your current fund, and have still made the decision to move, then it is time to set the wheels in motion.

    The first thing you do is apply for new insurance cover. You should do a risk needs analysis to determine how much cover you need given your current financial situation and quote the market to find the most appropriate insurer. No, your insurance doesn’t have to be with the default insurer offered by your super fund.

    You have the capacity to quote the market and fund the premium via rollover. If you want to learn more about this, I have done a detailed video in the past. Now I would suggest you contact a Financial Adviser to help you with this part of the process. As advisers, we have tools that we can use to assess your options.

    • We can also provide recommendations as to how to best structure your insurances to maximise any tax benefits.
    • There are a lot of insurers that only operate through the adviser channel, they don’t deal directly with the public.
    • This may mean you may get a much better policy through an adviser.
    • If you want help in this regard, feel free to reach out.

    Next you need to open up your new super fund. If you are not sure which fund you should be moving to, I have done a video previously outlining what to consider when choosing a fund. The general process of opening up a new fund is relatively easy. You will need certain details like your name, date of birth, etc.

    It is particularly important that you have your tax file number (TFN) available because if you don’t provide your TFN you will miss out on tax concessions within the fund and concessional contributions will incur and additional 32% tax on top of the standard 15% tax. A lot of funds these days let you open up an account online, but they also often give you the option to fill in and submit a paper application.

    If the fund gives you the option to have a binding nomination of beneficiary, and you elect to choose that option, then just be aware that you will need to submit a signed and witnessed nomination of beneficiary form along with your application. Non-binding nominations don’t need to be witnessed.

    Once the application has been made, and your new fund is open, you can then implement the rollover. Implementing the rollover Like we touched on at the start of this article, you can implement the rollover via lodging a request to rollover form or via MyGov.

    If you elect to fill in the request to rollover form, you can send the form directly to the fund you are rolling out of or to your new fund and request that they process the rollover on your behalf. Most super funds will do this bit for you and some even include the rollover form as part of the application.

    If you want to do it via MyGov it’s also pretty simple. Just log into your MyGov account, click on ATO linked services, click on Super, in the drop-down menu select ‘Manage’ then ‘Transfer super’. This is probably not the best way to roll over to a new super account as the ATO can be pretty slow in updating the details so it might take a while for your new account to show up.

    When rolling to a new super fund, I like to do a partial rollover first. I normally leave $10,000 in the old super fund and rollover the remainder of the balance. Doing it this way has a couple of benefits. Majority of the money is transferred to the new super fund straight away.

    This allows you to get the benefits you were seeking by making the move in the first place. It also allows you time to get the new insurance in force and paid for, prior to cancelling the old policy. In addition, you don’t want to close your old super fund if contributions are still being paid into the account.

    As soon as you open your new fund, you want to update your employer with the details of your new super account. I have seen in the past that employers can sometimes be a little slow to update super details, causing the money to be paid into an old account.

    1. If that account is closed, the money is generally refunded back to the employer, and they need to redirect it to the new account.
    2. Sometimes this gets neglected and the contribution gets lost so you need to follow them up.
    3. To avoid this issue, simply leave a small balance in the old super fund until you have confirmed with your employer that future payments will be made into the new fund.

    Once you have confirmation from your employer, and the new insurance cover is in force, you can lodge a second full rollover form to transfer the remainder of your balance. Just be aware there may be some fees / costs incurred when implementing a rollover.

    • Luckily, exit fees were abolished from 1 July 2019 but there may still be brokerage, or a sell spread when selling down your current investments.
    • Also, if you have made a capital gain on your investments, then your super fund will pay capital gains tax (CGT).
    • If you are in accumulation phase, the maximum tax rate on a capital gain is 15% however this can be reduced to 10% if the assets were held for more than 12 months.

    During the rollover process your money will likely be in cash for a period of time. If markets fall during this time, then it is going to benefit you because you won’t be subject to the decline however, on the flip side, you will miss out on the upside if markets rise.

    Which super fund is the best in Australia?

    Top 10 super funds for 2022-23 revealed

    • “Performance over the last 12 months has been a welcome result for our members and follows a multi-year program of reorienting the portfolio towards areas of competitive advantage,” he said.
    • “Our shorter term performance is explained by our positioning in equities and bonds, however our dedicated investment team remains firmly focussed on delivering longer-term investment outcomes to members.”
    • SuperRatings executive director Kirby Rappell said funds with higher equities exposure generally outperformed those with more unlisted property this year, and members invested in index funds did especially well.

    “We observed funds reviewing and writing down their unlisted asset valuations at the end of the financial year, contributing to the moderately weaker annual performance of funds with significant exposure to these assets in FY23,” Mr Rappell said. HESTA’s indexed growth fund was the top-performing passive balanced option for the year, with returns of 12.5 per cent, followed by Rest and Hostplus’ offerings, which delivered 12.4 per cent and 12.3 per cent respectively. But super fund members needed to focus on long-term performance, Mr Rappell added, which benefited from heavy unlisted asset exposures. The biggest industry super funds, which typically invest 30 per cent to 40 per cent of their portfolios in unlisted assets, dominated for 10-year returns in their balanced options. Super SA’s sustainable balanced option followed with 12.1 per cent. Industry heavyweights UniSuper and Aware Super’s ethical funds also performed well with returns of 11 per cent and 10.9 per cent respectively.

    1. But Mr Rappell said investors should remember that super was a long-term investment and most ethical options were “still relatively new in superannuation terms”.
    2. He said members should also brace for more ups and downs in their super funds’ returns next financial year, mirroring warnings by superannuation executives earlier this month.
    3. “Since the onset of the COVID-19 pandemic, managing volatility has really come back into focus for funds after almost a decade of steady gains,” he said.
    4. “The sharp rise in inflation and global uncertainty has been a constant over the past couple of years, and we expect this to persist.”

    Analysing seven-year returns in balanced options when adjusted for volatility, CareSuper had the most reliable option, according to SuperRatings. It delivered 7.5 per cent for the period. : Top 10 super funds for 2022-23 revealed

    How long does it take to transfer super from ATO to super fund?

    View details of all your reported super accounts, including any you have lost track of combine multiple super accounts by transferring your super, including ATO- held super, into your preferred eligible super account – if this is a fund-to-fund transfer it will generally be actioned within three working days withdraw