In Australia, “rollover super” refers to the process of transferring your superannuation savings from one super fund to another.
By receiving advice on whether you should rollover your super to a new super fund, you should gain a super fund that will have access to features and benefits that align to, and help you meet, your goals.
Several Benefits include:
- Superannuation Structure: Determine the most appropriate superannuation account structure Industry Fund, Master Trust, Wrap Platform or Self-Managed Superannuation Fund based on your current financial position.
- Consolidation of Accounts: Many people accumulate multiple super accounts over their working lives, especially if they change jobs frequently. Rollover super allows you to consolidate all your super savings into one account, reducing paperwork and making it easier to manage your retirement savings.
- Cost Savings: By consolidating your super accounts, you can potentially save on fees and charges associated with multiple accounts. Having just one account may also give you access to lower administration fees and investment costs.
- Easier Tracking and Management: With a single super account, it becomes much simpler to keep track of your contributions, investment performance, and overall super balance. This visibility can help you make more informed decisions about your retirement savings.
- Enhanced Investment Options: Some super funds offer a wider range of investment options than others. By rolling over your super into a fund with better investment options, you may have the opportunity to tailor your investments to suit your risk tolerance and financial goals.
- Potential for Better Returns: If your existing super fund has been underperforming, you might consider rolling it over to a fund with a stronger track record of investment returns. However, past performance is not a guarantee of future performance, so thorough research is essential.
- Insurance Continuity: Some super funds provide insurance coverage for their members. By rolling over your super, you may be able to maintain your existing insurance policies or get access to better insurance coverage through the new fund.
- Convenience and Simplification: Rollover super is a straightforward process, and most super funds can assist you in transferring your funds. It simplifies your financial affairs and can help you stay organized with your retirement savings.
- Super Death Beneficiary Nominations: ability to correctly nominate who you wish to receive your superannuation assets in the event of death.
Despite these benefits, it’s essential to consider some potential drawbacks and factors specific to your individual circumstances before making a decision. For instance, you should review exit fees from your current fund, compare the fees and performance of the new fund, and assess any potential impact on insurance coverage before proceeding with a rollover. It’s also a good idea to seek advice from a financial professional to ensure it aligns with your long-term financial goals.