Changing jobs yet again? No worries ladies! Job hoppers are increasingly becoming the face of the Australian workforce since they can earn a higher salary, grow their career, experience varied locations and cultures, and find a better cultural fit.
No matter what your reasons for job hopping, there are a number of things that you need to take into consideration when you change jobs. This includes first and foremost thinking about your superannuation fund and the money that is accumulated within it. Don’t forget about it — remember that this superannuation is your money (your retirement) regardless of where you work.
WHAT ARE YOUR SUPERANNUATION OPTIONS?
Did you know that 40% of Aussies have more than one superannuation account? New job, new account.
When you leave your present job and move to a new job you have a couple of options with regards to your superannuation. If you choose to, you can leave this in the existing superannuation fund. Alternatively, you can have all your payments in one fund which you can do by rolling over your contributions.
It is a good idea to have all your payments in the one fund.
ROLL-OVER – WHY DO IT?
- It is easier to keep track of your money if it is just in one fund, rather than spread across a number of funds.
- You only pay one set of fees.
- It reduces the amount of paperwork you receive and have to read.
- It is easier to control; for example when choosing the type of investment.
In most cases, it’s your choice into which fund your employer will pay your contributions. If you don’t make a choice, your employer will pay your contributions into its default fund.
Think about what happens with your bank account when you change jobs. Your employer gives you a form which you fill in with your bank account details so they know where to pay your wages.
Your superannuation is the same – you should be offered a standard choice form within 28 days of beginning a new job, which you fill in with your superannuation account details so your employer knows where to pay your super.
WANT TO CONSOLIDATE BUT LOST TRACK OF YOUR SUPER?
It can happen to anyone really, especially in this modern world’s employment carousel! On which as a student, you’ve probably worked three and sometimes four casual jobs to pay your way. After graduating maybe you worked for a few years, then took time off to be a parent and then worked part-time role after that, all within a few short years.
As each employer recommends different funds and even signs us up to them without our knowledge, it’s very easy to lose track of your super along the way as it is something that we really don’t think about on a daily basis.
Super is officially recorded as “lost” when the super fund reports it to the Australian Tax Office (ATO) as being so and only if you either:
- Haven’t contributed to the fund in the last 2 years; or
- You cannot be located
Since all lost or unclaimed super is registered with the Australian Tax Office, so they are without a doubt your first port of call. myGov is the tool used to find the lost dollars. Any recent super you have misplaced should come up. If you have any problems with the website, give the staff a call. There’s a lot of misplaced superannuation floating around, and they’d quite happily help to find it’s way back home.
Remember that your superannuation is your retirement. So there is no better time than the present to get it in ‘super shape’ by consolidating it for a start so in the future you can live a happy and stress-free retirement – perhaps travelling the world, doing charitable work or even just sitting overlooking the sea, cuppa in hand, getting through that pile of books!
Want to supplement your super? Signup for Super Rewards the cash reward that helps you make your desired retirement a reality all while you SHOP!
Before you go, let us know:
What steps will you be taking to get your future in ‘super shape’?
Disclaimer: The information on this website is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any financial product.