Consolidating Super Accounts: Growing Your Retirement Fund

If you’ve had a few jobs over the years, chances are you’ve got more than one super account – possibly without even realising it. You’re not alone. Many Australians have multiple superannuation funds in their name, which can quietly chip away at your retirement savings.

In this guide, we’ll walk through what super accounts are, why it’s common to have more than one, the risks of keeping them separate, and consolidating super accounts quickly and easily using tools like myGov and the ATO.

What’s a Super Account, Anyway?

Superannuation (or “super”) is Australia’s compulsory retirement savings system. Employers are legally required to contribute a percentage of your salary into a super fund on your behalf. These contributions accumulate over your working life, ideally growing into a solid nest egg by the time you retire.

Each super account is held with a specific fund, such as AustralianSuper, Rest, Hostplus, or others, and includes features like investment options, fees, and sometimes life insurance. If you don’t actively choose a super fund when starting a job, your employer usually selects one for you. That’s where the multiple account problem often begins.

Why So Many Australians Have Multiple Super Accounts

Here’s the typical story: You start a casual job as a student, your employer sets up a super fund. A few years later, you switch to a full-time role, and a new employer opens a different fund. You forget to roll the old one over – and so it begins.

Common reasons people end up with multiple accounts include:

• Changing jobs without nominating an existing fund

• Not knowing you could take your super fund with you

• Losing track of old funds due to address changes or forgotten logins

Over time, these stray accounts can become inactive, underperforming, or even go unclaimed if they fall below a certain balance and you stop contributing.

Why Multiple Super Accounts Can Cost You

Having more than one super account might seem harmless, but it can lead to some real financial drawbacks:

✦ You’re Paying Extra Fees

Every super account charges administrative and investment fees. With multiple accounts, you’re basically burning money in duplicate charges that could otherwise be invested for your future.

✦ You Might Be Doubling Up on Insurance

Super accounts often include default insurance for life cover or income protection. If you have three accounts, you might be paying three insurance premiums (often unknowingly) and in most cases, you can’t even claim on multiple policies for the same event.

✦ Higher Risk of Lost Super

Forgotten accounts with low balances may be transferred to the ATO if they become inactive. That’s your money, just sitting there doing nothing.

✦ It’s Harder to Keep Track

Managing multiple funds makes it harder to monitor your super’s performance or align your investments with your goals.

Benefits of Consolidating Super Accounts

Bringing all your super into one account is a smart, simple way to strengthen your retirement plan. Here’s why:

• Fewer fees = more money compounding over time

• Single insurance policy = simpler and cheaper

• Easier to manage = one login, one balance, one strategy

• Improved growth = larger balances are invested more effectively

• Peace of mind = no forgotten or missing accounts

Bonus: since 2019, super funds can’t charge exit fees, so consolidating is typically free.

How to Consolidate Super Accounts (Fast & Free)

The quickest way to combine your super is through the ATO’s service via myGov. It’s secure, free, and you don’t even need to contact your old funds.

Step-by-step:

1. Log in at my.gov.au (or create an account if you don’t have one).

2. Link your account to the ATO. You’ll need your Tax File Number (TFN) and some personal details.

3. Once inside, click on ATO > Super > Manage > Transfer super.

4. You’ll see a list of your super accounts – including any inactive or lost ones.

5. Choose the fund you want to keep, and select others to transfer from.

6. Submit your request. The ATO takes care of the rest – no phone calls, no paperwork.

Your funds will be rolled over automatically, usually within a few days.

Pro tip: After consolidating, give your employer the updated fund info so future contributions go to the right place.

Choosing Which Super Fund to Keep

Before combining your accounts, take a moment to compare your options. Not all super funds are created equal. Consider:

• Fees: Lower fees = better long-term returns

• Investment performance: Look at long-term (5–10 year) results, not just recent ones

• Insurance benefits: If one account has useful cover, ensure it transfers or can be replaced

• Perks or employer deals: Some jobs offer better employer contributions with specific funds

• Fund type: If you’re in a defined benefit scheme, speak to a financial adviser before rolling over – these funds work differently and might offer benefits you’d lose by consolidating

You can use the YourSuper comparison tool on ato.gov.au to compare basic fund performance and fees side by side.

Final Thoughts: Keep Your Super Simple

Consolidating super accounts is one of the easiest financial wins you can score. It’s quick, free, and can save you thousands in unnecessary fees over time.

Your super is your future income – don’t let it get chipped away or forgotten. Use myGov to find and combine your accounts today, or speak to your chosen fund for help with rollovers. Whether you’re 25 or 55, now is the right time to take control.

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.