Should I Consolidate My Super Funds? Benefits and Things to Consider
Consolidating multiple super accounts into one can reduce fees, simplify your finances, and make tracking retirement savings easier. But before you act, there are important things to review — especially around insurance cover.
This article provides general information only and does not constitute personal financial advice. Your individual circumstances will affect what’s right for you. Consider seeking superannuation advice in Port Lincoln before making changes to your super.
The Scale of the Issue: Multiple Super Accounts in Australia
If you’re seeking superannuation advice in Port Lincoln, you may be surprised to learn just how common multiple super accounts really are. According to ATO statistics as at 30 June 2025, around 4 million Australians — approximately 22% of all super holders — held two or more superannuation accounts. The ATO estimates there may be 2 to 2.5 million unwanted or unneeded multiple accounts still in the system.
The cost of inaction is significant. The Australian Government has reported that approximately $21.5 billion in superannuation sits in unclaimed or forgotten accounts across 7.3 million accounts — an average of around $2,950 per account. That is money not actively growing for your retirement.
This is a particularly relevant consideration for people on the Eyre Peninsula, where a mobile workforce across industries such as fishing, agriculture, and mining can mean super contributions going to multiple funds over the years without members realising it.
The Benefits of Consolidating Your Super
For people who hold accounts they no longer actively use, consolidation can offer several meaningful advantages. At Eyre Financial Services, we regularly help clients identify and act on these benefits. The ATO explains that “putting all your super in one account means you only pay one set of account fees and charges.” The ASIC MoneySmart guide to consolidating super also notes that consolidation can reduce paperwork and make it easier to track your balance.
- Fewer fees: Each super account you hold typically charges administration fees. Holding two or three accounts means paying those charges multiple times, which reduces the balance that compounds over time.
- Simpler record-keeping: One account means one annual statement, one set of investment options to review, and one fund to contact if your details change.
- Easier to track your progress: Seeing your full retirement savings in one place makes it easier to assess whether you’re on track toward your retirement goals.
- Reduced risk of super becoming lost: Accounts you’ve lost contact with can become classified as “lost” super, and the funds may eventually transfer to the ATO.
| Potential Benefit | Key Consideration |
| Pay one set of administration fees instead of multiple | Check that the fund you’re consolidating into has competitive fees — APRA data shows the industry collected $12.3 billion in fees in the year to June 2025 |
| Simpler paperwork and one annual statement | Make sure your contact details are up to date in the fund you keep |
| Easier to track your full super balance | Check you’re not giving up a higher employer contribution rate by switching funds |
| Reduces the risk of accounts becoming lost or ATO-held | Insurance cover in the closing account will cease — review this before consolidating (see below) |
What to Check Before You Consolidate
Consolidation is not always the right move for every account or every person. The ASIC MoneySmart consolidation guide and the ATO both recommend checking the following before initiating a rollover:
- Insurance cover: Many super funds provide default life cover, total and permanent disability (TPD) insurance, and income protection insurance. Closing a fund account cancels any insurance held within it. Review what cover you hold in each account before proceeding.
- Exit fees or charges: Some funds may charge fees when you transfer a balance out. Check both the fund you are leaving and the one you are moving into.
- Employer contribution arrangements: If your employer pays a higher contribution rate to a specific fund, switching away from that fund may reduce your future contributions. Confirm this with your employer first.
- Defined benefit funds: If you are in a defined benefit super fund, seek financial advice before making any changes. According to ASIC MoneySmart, “if you leave, you can’t rejoin” — and some defined benefit arrangements are very favourable to long-term members.
- Find all your accounts first: Before consolidating, use the ATO’s myGov tools to make sure you’ve located all your accounts, including any you may have forgotten.
The Insurance Question: Why It Matters
Insurance is one of the most important things to review before closing any super account. Most Australians with super have some form of default insurance within their fund — commonly life cover, total and permanent disability (TPD) insurance, and income protection insurance. ASIC MoneySmart’s guide to insurance in super explains that income protection cover “pays you a regular income for a specified period (this could be for 2 years, 5 years or up to a certain age) if you can’t work due to temporary disability or illness.”
The risk is straightforward: when you close a super account, the insurance within it ends. As the ASIC MoneySmart insurance in super guide states, “if you change super funds, your contributions stop or your super account becomes inactive, your cover may end. You could end up with no insurance.”
A super fund may cancel your insurance if contributions to that account haven’t been received for at least 16 months. This means an inactive account you plan to keep may already have lost its cover before you act. It also means that if you have duplicate insurance across two accounts, you may be paying premiums twice, which can reduce your balance over time without providing additional benefits.
If you have pre-existing health conditions or are older, obtaining equivalent replacement insurance elsewhere may not be straightforward. This is one area where speaking with a financial adviser before making any changes can help you avoid an outcome that is difficult to reverse.
How to Consolidate Your Super Accounts
Consolidating your super means moving all your super into one account. This can save you time and money — you’ll only pay one set of fees, have less paperwork, and find it easier to keep track of your balance.
Before you consolidate
There are a few important things to check before closing any accounts:
| Check | Why it matters |
| Employer contributions | Changing funds could affect how much your employer contributes — some employers pay more to certain funds |
| Insurance cover | You may have life, TPD, or income protection insurance through your fund. If you leave, you might not be able to get the same cover — especially with a pre-existing condition or if you’re aged 60 or over |
| Type of super fund | If you’re in a defined benefits fund, get professional advice before leaving — these can be very generous, and you can’t rejoin once you leave |
| Which account to keep | Don’t just transfer into the account with the highest balance. The best option may be a smaller account, or even a completely new fund. |
How to consolidate
Once you’ve chosen the account you want to keep, you can transfer your other balances into it online through the ATO:
| Step | Action |
| 1 | Go to my.gov.au and log in (or create an account) |
| 2 | Link your myGov account to the ATO |
| 3 | Select ‘Super’ and then ‘Manage’ |
| 4 | Select ‘Transfer super’ (this option only appears if you have more than one account) |
This will show all of your super accounts and let you transfer your balance from one to another.
You can also transfer your balance by contacting your new fund directly, or by using an ATO rollover form.
If you cannot locate a particular account, the ATO also operates an automated Super Search line on 13 28 65. The ATO’s lost and unclaimed super data shows the scale of the issue — and why it’s worth taking the time to check.
As Assistant Treasurer Daniel Mulino has noted, “your money works for you when it is in your active superannuation account.” Super that sits forgotten in a closed or inactive fund is not compounding or working toward your retirement.
Is Consolidation Right for You?
For many people, consolidating super accounts makes sense — particularly if fees are being paid on accounts that are no longer receiving contributions. However, individual circumstances vary. The right decision depends on your insurance needs, the types of funds you hold, your employer’s arrangements, and your broader retirement goals.
Under the Superannuation Industry (Supervision) Act 1993, you have a legal right to request the transfer or rollover of your super benefits. However, exercising that right without checking the implications first can have consequences that are difficult to undo, particularly around insurance.
If you have questions about whether consolidating is right for your situation, or you’d like to understand how your super fits into your broader retirement planning, Eyre Financial Services is here to help. You can reach out to our team for superannuation advice in Port Lincoln to discuss your options in the context of your individual goals.
Frequently Asked Questions
Will I lose my insurance if I consolidate my super?
Yes — when you close a super account, any insurance held within that account ends. This includes life cover, total and permanent disability (TPD) insurance, and income protection insurance. ASIC MoneySmart’s insurance in super guide states that “if you change super funds, your contributions stop or your super account becomes inactive, your cover may end.” Always review your insurance arrangements before initiating any consolidation, particularly if you have pre-existing health conditions or would find replacement cover difficult to obtain.
Is it free to consolidate my super?
In most cases, yes. Consolidating using the ATO’s online services through myGov is free of charge. However, some funds may charge exit fees or account closure fees. Check the product disclosure statement (PDS) or contact your fund directly before initiating a transfer to confirm whether any fees apply.
What if I can’t find all my super accounts?
The ATO provides tools to help you locate all your super, including accounts you may have forgotten. By logging in to ATO online services through myGov, you can view both active and lost accounts in one place. The Australian Government estimates there is approximately $21.5 billion in unclaimed super across 7.3 million accounts — so it is worth checking. You can also call the ATO’s lost super search line on 13 28 65.
