This guide explains general concepts for educational purposes. It is not financial, tax or legal advice, or a recommendation to buy, sell, hold or change a financial product or strategy. It does not take into account your objectives, financial situation or needs. Rules, caps, thresholds and product terms can change. Check the current official information and obtain advice appropriate to your circumstances before making a financial decision.
Find out what you actually hold
Combining super can make administration easier and may reduce duplicated expenses. Start by listing every account, including the investment option, fees, insurance, beneficiaries and any special benefits. The largest account is not automatically the best destination.
Use your fund records and official services to confirm balances and account details. Older accounts may have features you no longer use, but they may also contain insurance or rights that are difficult to replace. Establish the facts before requesting closure.
Check insurance before a transfer
Closing an account can end the insurance attached to it. Replacement cover may require underwriting, have different definitions or cost more. A health change since the original policy began can make that difference particularly important.
If replacement insurance forms part of the plan, confirm acceptance and commencement before cancelling existing cover. A submitted application is not the same as an active policy. Understand what remains insured during the transition and keep the confirmation documents.
Compare the destination and the transaction
Look beyond the headline administration fee. Investment costs, available options, service, account features and the consequences of selling or transferring holdings all affect the comparison. Past performance alone is not a reliable basis for choosing the receiving fund.
Defined-benefit accounts and other special arrangements warrant particular care because their value may not be captured by a displayed balance. Confirm any consequences with the provider and obtain personal advice before giving up benefits you do not fully understand.
Finish the account housekeeping
After a transfer, check that the receiving fund has the correct details, investment allocation and nomination. Tell your employer where future contributions should go and monitor the next payments. Otherwise, a new contribution can recreate an account you intended to close.
Keep the comparison and transaction confirmations with your records. Consolidation should produce a simpler arrangement that still serves your needs; it is not a reason to stop checking insurance, contributions and fees afterwards.