Answering your key question: should I consolidate my super?
Consolidating super means rolling multiple superannuation accounts into a single fund. For many Australians carrying two, three, or even five super accounts from different jobs over the years, bringing everything together can reduce fees and make retirement planning significantly simpler.
However, consolidation is not always the right move. If you hold a defined benefit fund, a Super SA Triple S account, or have valuable insurance attached to an existing fund, rolling out could mean giving up benefits that cannot be replaced. This is where super advice or superannuation advice becomes essential before taking action.
Professional financial advice in Adelaide can help you assess whether consolidation makes sense based on the fees you’re paying across funds, the insurance you might lose, your investment options, and your retirement goals. The decision should be informed by your specific circumstances, not just a general preference for simplicity.
If you’re in your 40s, 50s, or 60s and have accumulated multiple super accounts over your working life, this guide will walk you through what consolidation involves, when it makes sense, when it doesn’t, and how to approach it step by step.
What does it mean to consolidate your super?
Consolidating your super means transferring the balances from two or more superannuation accounts into one chosen fund. Instead of having retirement savings scattered across several providers, you end up with a single account holding your total super balance.
Consider someone who worked at a retail job in 2005, moved to an office role in 2012, and started their current position in 2019. Each employer may have set up a default super fund, leaving this person with three separate accounts. Consolidating would mean choosing one of those funds (or a different one entirely) and rolling the other two balances into it.
This process uses what’s called a “rollover” between complying super funds. Your money moves directly from one fund to another without being paid out to you personally. Because the funds remain within the super system, tax generally doesn’t apply at the point of transfer.
It’s worth understanding the difference between:
Consolidating super in the accumulation phase – combining accounts while you’re still working and building your balance
Starting a retirement income stream – converting super into an account-based pension once you meet a condition of release, such as reaching preservation age and retiring
Online tools have made finding and consolidating super much easier than it used to be. Through ATO online services via myGov, you can see all super accounts linked to your Tax File Number, including lost or inactive accounts. The YourSuper comparison tool helps compare MySuper products, and most super fund portals now offer simple consolidation features.
Why people end up with multiple super funds
Having multiple super funds is extremely common, especially for people who have changed jobs regularly since compulsory superannuation began in 1992. The Productivity Commission estimated that millions of Australians hold unintended multiple accounts, costing members billions in unnecessary fees and duplicate insurance.
Here’s how it typically happens:
Default funds set up automatically when changing employers. If you started a job in 2010 without nominating an existing fund, your employer likely opened an account in their default fund. The same thing happened when you changed jobs in 2016, and again in 2021. Three jobs, three funds.
Working multiple casual or part-time jobs at once. Someone working weekends in hospitality while studying, then picking up shifts in retail, might have had each employer paying into a different default fund simultaneously.
Not providing existing fund details to a new employer. Before the “stapling” rules introduced on 1 November 2021, there was little to prevent employers from opening new accounts every time someone started a job. Even now, older accounts from before stapling remain scattered across the system.
Older lost or inactive accounts. Many people have small balances sitting in funds from jobs they held 15 or 20 years ago, sometimes holding just a few hundred dollars or only an insurance policy.
South Australian public sector employees may have additional complexity. A nurse, teacher, or government employee might hold a Super SA Triple S account alongside retail or industry funds from previous private sector roles. This mix of untaxed public sector schemes and standard accumulation funds requires careful consideration before consolidating.
Having multiple accounts isn’t automatically a problem. But it usually means paying multiple sets of fees and makes it harder to track your total retirement savings. This is often what prompts people to seek superannuation advice.
Benefits of consolidating your super
For many Australians, consolidating to one high-quality super fund can meaningfully increase retirement savings over the long term. The benefits come from cutting unnecessary costs, simplifying investment decisions, and making it easier to plan for the future.
Lower fees across your total balance. Each super fund typically charges administration fees and investment fees. Some are fixed dollar amounts (say, $120 per year), while others are percentages of your balance. If you’re paying three separate $120 admin fees annually, that’s $360 instead of $120. Over 20 years, with investment returns factored in, those unnecessary fees could cost you tens of thousands of dollars in retirement savings. Consolidating to one account means paying one set of fees rather than several.
Easier to track and manage. Instead of logging into three different portals, remembering multiple passwords, and receiving several annual statements, you see one balance in one place. This makes it far simpler to check your investment performance, review your insurance cover, and understand where you actually stand financially.
Clearer investment strategy. Multiple funds often result in accidental duplication or gaps in your asset allocation. You might have three “balanced” options that each hold 60% in Australian shares, giving you more exposure to local markets than you intended. Or you could have one fund in “growth” and another in “conservative” without realising the combination doesn’t match your risk tolerance. Consolidating lets you set a single, deliberate investment strategy aligned with your age and retirement goals.
Simplified paperwork and reporting. Fewer statements mean less paperwork to file and review. At tax time, you’re dealing with one fund’s annual statement rather than several. When you meet with a financial adviser in Adelaide or elsewhere, preparing for the conversation is straightforward.
Better alignment with retirement planning. As you approach retirement, having one primary fund makes it simpler to model how long your money will last, plan your transition to retirement, and eventually start an account-based pension. Rather than juggling multiple accounts, you can focus on the strategies that matter.
Risks and traps to check before you consolidate
Consolidation should be checked carefully before you proceed. Insurance, tax, and special fund features all require attention. This is where tailored super advice is especially valuable.
Insurance in super
Most super funds include life insurance, total and permanent disability (TPD), and sometimes income protection by default. These policies are attached to your account, and if you close that account by rolling the balance elsewhere, the insurance usually stops immediately.
The problem is that you can’t always replace that cover on the same terms. If you’re older, have developed health conditions, or work in a higher-risk occupation, a new insurer may charge significantly higher premiums, impose exclusions, or decline cover altogether.
Consider someone in their mid-50s in Adelaide who has held income protection through their industry fund for 15 years. They consolidated to a different fund for lower fees without checking the insurance. When they tried to get equivalent cover in the new fund, underwriting revealed a back condition that led to exclusions. They lost coverage they’d held for years and couldn’t get it back.
Defined benefit and legacy funds
Some public sector or corporate schemes are defined benefit funds, where your retirement benefit is calculated based on a formula involving your salary and years of service. This is fundamentally different from accumulation funds, where your balance simply depends on contributions plus investment returns minus fees.
Super SA Triple S and certain other SA public sector options may have defined benefit components or special rules. Transferring out of these schemes can mean giving up guaranteed benefits, specific pension formulas, or employer-subsidised arrangements that cannot be recreated in a standard retail or industry fund.
Exit fees, buy-sell spreads, and loss of unique benefits
While direct exit fees on super have been largely banned since 2019, some funds still have indirect costs. Buy-sell spreads (the difference between what you pay to buy units and what you receive when selling) can apply when you exit. Some funds offer loyalty bonuses, fee discounts, or special investment options for long-term members that you would lose by leaving.
Check the Product Disclosure Statement (PDS) for each fund and ask directly about any penalties or lost benefits before initiating a rollover.
Tax considerations
Rollovers between complying super funds are generally not taxed at the time of transfer. The money moves from one fund to another within the super system, and tax is typically paid later when benefits are withdrawn.
However, if you withdraw money to your personal bank account first and then contribute it back, that’s treated differently and can trigger tax. Members of certain public sector schemes, including Super SA Triple S, may have “untaxed elements” in their super. These can face different tax treatment and caps when rolled into other funds. Specialist superannuation advice is important if this applies to you.
Timing issues
If you’ve made personal super contributions and plan to claim a tax deduction for them, you must submit a “notice of intent to claim a deduction” to your fund and receive written acknowledgement before rolling those contributions elsewhere. If you consolidate first, you may lose the ability to claim the deduction for that financial year.
When consolidating super usually makes sense
For many people in their 30s to 60s, especially those with two to four small balances under $50,000 each, simplifying to one well-chosen fund often makes sense.
Consolidation is typically beneficial when:
You have multiple low-balance or inactive funds that are being eroded by fixed fees and insurance premiums
All your funds are modern accumulation funds without special guarantees or defined benefits
Your insurance needs have been reviewed, and suitable cover can be retained or replaced in your chosen main fund
You prefer managing investments in one place and want to engage more seriously with retirement planning
Consider an Adelaide-based couple in their early 50s preparing to retire at 65. Between them, they have six super accounts from various jobs over the past 25 years. Most are small balances in default options, each charging fees and some holding insurance they don’t need. After reviewing their options with a financial adviser, they consolidate into two accounts (one each) in a strong-performing industry fund. They reduce their combined annual fees by several hundred dollars and can finally see their total retirement position clearly.
Many people first consider consolidation when they sit down for retirement planning or super advice, particularly around milestone ages like 55 or 60, or when life events like downsizing the family home prompt a review of their finances.
When consolidating super may not be the right move
“One fund is best” is not a universal rule. In some cases, consolidation can reduce valuable benefits that are difficult or impossible to replace.
You should pause and seek detailed superannuation advice if:
You’re a member of a defined benefit scheme. These funds, common in older public sector and corporate arrangements, provide retirement benefits based on formulas involving salary and service years rather than account balances. Rolling out can mean permanently giving up guaranteed income in retirement.
You hold a Super SA Triple S or other untaxed public sector fund. Tax rules and contribution strategies work differently for these schemes. The untaxed component has specific caps and potential tax implications when moved to other funds. South Australian public sector employees should be particularly careful.
You have long-standing insurance policies with competitive terms. If you’ve held TPD or income protection for 15 or 20 years with low premiums and generous definitions, those terms may not be available in a new fund due to your current age, health, or occupation.
You’re close to retirement or accessing super due to terminal illness. The order and timing of rollovers can affect tax outcomes. If you’re applying to access super under a terminal medical condition, changes to your super structure during the certification period can change how withdrawals are taxed.
In these situations, personalised financial advice in Adelaide or your local area can model the specific pros and cons before any account is closed. The goal is to ensure you’re making an informed decision, not one you’ll regret.
How to consolidate your super – step by step
If you’ve reviewed your situation and decided consolidation makes sense, here’s how to work through the process.
Step 1: Gather your information
Collect your Tax File Number (TFN), current super statements, and online login details for each fund. Create a simple list noting the fund name, your member number, current balance, investment option, and any insurance held in each account.
Step 2: Find all your super
Log into myGov and link the Australian Taxation Office service if you haven’t already. Navigate to Super > Manage > Transfer super. This screen shows all super accounts linked to your TFN, including any ATO-held super from lost or inactive accounts. Small inactive balances may have been automatically transferred to the ATO and can be consolidated from there.
Step 3: Compare your funds
Look at fees, investment options, performance over five to ten years, insurance offerings, and service quality. The YourSuper comparison tool (accessible via myGov) lets you compare MySuper products, though it doesn’t cover every investment option or fund type. Consider which fund genuinely suits your needs rather than simply choosing the one with the highest recent returns.
Step 4: Choose the fund you want to keep
Select the fund that best matches your needs for fees, performance, insurance, and retirement strategy. If you’re unsure, input from a financial adviser can help. Take special care if one of your funds is a defined benefit scheme or an untaxed arrangement like Super SA Triple S.
Before initiating any transfer request, confirm what insurance you have in each fund. Consider whether any health or underwriting issues might prevent you from getting equivalent cover in your chosen fund. Make sure the cover in your target fund is sufficient for your needs. Don’t roll over until you’re satisfied that valuable cover won’t be lost.
Step 6: Initiate the rollover
Full rollovers can usually be requested online through ATO online services via myGov, or through the “receiving” fund’s website. Most funds have a simple consolidation form where you provide details of the other fund and authorise the transfer. A full rollover generally closes the account you’re transferring from. For partial rollovers, you may need to contact the fund directly.
Step 7: Confirm completion and update employer details
Rollovers typically take around three business days, though they can take longer if identity checks or data mismatches require manual processing. Check your receiving fund’s transaction history to confirm the money has arrived and the tax components match what you expected. Contact the old fund if the account hasn’t closed properly.
Finally, give your new fund details to your employer so future employer contributions go to the correct account. This ensures you don’t accidentally create another new fund down the track.
Tax, timing, and special situations
Although rollovers between complying super funds are typically not taxed at the point of transfer, there are situations where tax and timing matter significantly.
Tax on rollovers
When you move super directly from one fund to another, tax is usually not payable at that time. Tax is generally paid when benefits are ultimately withdrawn, depending on your age and the components involved. However, if super is paid out to you personally (into your bank account) and then re-contributed, it may be treated as a personal contribution and could affect your contribution caps.
Untaxed elements
Some public sector funds, including certain Super SA arrangements, contain “untaxed elements” because contributions were made from pre-tax employer money that wasn’t taxed in the fund. When these amounts are rolled to another fund, tax may be withheld if the transfer exceeds specific caps. If you have significant untaxed amounts, specialist superannuation advice is strongly recommended before consolidating.
Personal deductible contributions
If you’ve made personal contributions to your super and plan to claim a tax deduction for them, you must lodge the notice of intent to claim a deduction and receive written acknowledgement from your fund before rolling those contributions elsewhere. Failing to do this can mean losing the deduction entirely.
Terminal medical condition and early access
If you’re applying to access super due to a terminal medical condition, the tax treatment of withdrawals can be more favourable under certain conditions. However, rollovers during the certification period can change how this works. Speak to your fund and a qualified financial adviser before making any changes in these circumstances.
For guidance on these issues, the Australian Taxation Office website and Moneysmart provide reliable, plain-English explanations.
How consolidation fits into broader financial planning
Consolidating super is one piece of a broader financial plan, not an isolated decision. The choice of fund, investment options, and timing should connect to your overall strategy.
Investment strategy – Once you’ve consolidated, ensure the fund’s asset allocation fits your risk profile and retirement timeline. Someone 15 years from retirement might take a different approach than someone planning to retire in three years.
Tax planning – Your super strategy should coordinate with salary sacrifice arrangements, personal deductible contributions, and spouse contributions. Your financial plan should consider how these elements work together.
Insurance strategy – Life, TPD, and income protection cover inside super should be matched with any cover you hold outside super. The goal is appropriate protection for your family and lifestyle without paying for duplicate policies.
Estate planning – Binding death benefit nominations and your will need to be consistent with your super arrangements. If you consolidate to a new fund, existing nominations in old funds become irrelevant, and you’ll need to establish new ones.
For many clients seeking financial advice in Adelaide, the consolidation conversation happens alongside discussions about retirement age, Centrelink entitlements, downsizing the family home, and planning income through their 60s and beyond. It’s an opportunity to reset and engage more actively with your future goals, rather than just a box-ticking exercise.
Getting superannuation advice and financial advice in Adelaide
Sometimes the sensible choice is getting expert help rather than trying to decide alone. This is particularly true when insurance, defined benefits, or significant balances are involved.
A financial adviser can:
Analyse your existing super funds, including fees, investment mix, and insurance features
Model outcomes of keeping versus consolidating funds under different retirement ages and contribution strategies
Provide tailored super advice and broader financial planning recommendations tied to your goals
When choosing an adviser, look for someone who holds an Australian Financial Services Licence (or is authorised under one) and can provide the level of advice you need. Moneysmart explains the difference between general advice and comprehensive financial advice, including personal financial advice that considers your complete situation.
Adelaide-based advisers often have specific experience with local schemes such as Super SA Triple S and other SA public sector arrangements. This local knowledge can be crucial when deciding whether to roll out of these funds or how to coordinate them with retail or industry super funds.
Before your first meeting with an adviser, prepare by gathering statements from all super funds, listing your goals (retire at 60, work part-time from 62, leave an inheritance), and thinking about your comfort with investment risk. This helps the adviser develop recommendations that actually fit your life.
Money Path is a trusted financial advice service in Adelaide that specialises in superannuation and retirement planning. Their experienced advisers can guide you through the complexities of consolidating your super, ensuring you understand the implications for your insurance, investment strategy, and retirement goals. With Money Path, you receive personalised advice tailored to your circumstances, helping you make confident decisions about your financial future.
Frequently asked questions about consolidating super
Is it always better to have one super fund? Not always. One fund is often simpler and cheaper, but multiple funds may be appropriate where special benefits or valuable insurance exist. The right answer depends on what each fund offers and what you’d lose by leaving.
How long does a rollover usually take? Many transfers are completed in a few business days. However, if identity checks, data mismatches, or manual processing are required, it can take longer. Your receiving fund should be able to track the progress.
Will I lose my insurance if I consolidate? Usually, yes. Insurance in the old fund typically stops when the account is closed. This is why checking your insurance cover before consolidating is essential. Make sure you have adequate cover in place before initiating any transfer.
Can I consolidate super close to retirement? Yes, but the stakes are higher. Mistakes made at this stage can be harder to fix, and the impact on your retirement income is more immediate. Getting superannuation advice before consolidating close to retirement can help avoid irreversible errors.
Does consolidating super cost money? Direct exit fees are largely banned, but there can be indirect costs such as buy-sell spreads or the loss of loyalty bonuses. Review each fund’s disclosure documents and ask the fund directly about any costs before proceeding.
Do I need to speak to my employer? You don’t need employer permission to consolidate, but you should give your employer your updated fund details after consolidating. This ensures future contributions go to your chosen fund rather than creating a new account.
Key takeaways and next steps
Consolidating super can reduce fees, simplify management, and help you achieve clarity about your retirement savings. For many Australians with multiple small balances, it’s a practical step toward a stronger financial position.
However, insurance, defined benefit schemes, untaxed public sector funds, and tax timing issues all require careful review before you act. Super advice or superannuation advice—especially regarding specific strategies like downsizer super contributions—can help ensure your consolidation decisions support long-term retirement outcomes rather than accidentally harming them.
If you hold multiple funds, are a member of a defined benefit or Super SA-type scheme, or are within 10 to 15 years of retirement, consider speaking with a qualified financial adviser. Adelaide residents dealing with local public sector schemes will particularly benefit from advisers with specific experience in these arrangements.
Your next step: review your existing super accounts this month. Log into myGov and use ATO online services to see everything in one place. Use the YourSuper comparison tool to understand your options. Then decide whether you’re comfortable proceeding on your own or whether professional financial advice would give you greater confidence in your decision.
