Can you have 2 superannuation funds?
Updated on 30 October 2024 | 3 minute read
Yes, you can have accounts with multiple super funds. The key is understanding the pros and cons of both scenarios so you can make better choices for your retirement.
You're allowed to have accounts with multiple superannuation funds. In fact, the Australian Taxation Office (ATO) says there are around 4 million Aussies who have 2 or more super accounts. There are a lot of reasons why this is the case, so it's good to know the potential benefits as well as drawbacks of having more than one account if you want to supercharge your super.
Why you might have 2 or more super accounts
There are a few reasons why you may have multiple super accounts with different super funds:
You changed your name or address and unintentionally lost contact with your super fund.
You want access to different insurance options available within different super funds.
You have a specific investment strategy and need more variety in investments to reach your retirement goals.
You have savings balances in multiple super funds, and you're not sure which one to stick with. If this is you, it's a good idea to do your research to find the right fund for you.
What can happen if you have multiple super accounts
Having more than one super account could hurt your retirement plans for a number of reasons.
By using multiple super accounts, you could be lowering your super balance over time with extra fees.
More fees, more paperwork
The more super funds you have, the more you could be paying in fees. Not to mention more paperwork to keep your details up-to-date. Some fees and costs are calculated based on your balance, but most funds also charge a flat fee – and if you have more than one account, you’re paying those flat fees multiple times.
Increased insurance premiums
You might be paying for more than one insurance cover, which could be more than you need. Especially if you're paying an increased amount for the combined total value of the cover, rather than insurance coverage linked to just one super account. (On the flip side, you should be aware that if your super fund isn't receiving any contributions for a longer period of time, the fund may cancel your insurance for that super account.)
Risk of lost or unclaimed super
If your super fund can't contact you or your account becomes inactive (no contributions or account updates for 5 years), the fund will report it to the ATO and your super becomes officially 'lost'.1 Unclaimed super is when your super fund sends your account to the ATO.1
Worried you might have unclaimed or lost super?
We can help you track down unclaimed or lost super, and you can decide whether you want to combine them.
Impact of having multiple super accounts
If you had a starting salary of $50,000 and multiple super accounts, over the course of your working life you could end up with $51,000 less to spend in retirement than if you had just one super account, according to the Productivity Commission report.2
Super balance at retirement
Productivity Commission 2018 - Superannuation: Assessing Efficiency and Competitiveness Report. Based on starting salary of $50,000.
How to switch from multiple super accounts to just one
So now you know the ways you could be losing money by having multiple super accounts.
With just one account to keep up to date, you can rest easy with simplified fees, less paperwork, and a streamlined view of your investments. Having one super account means you can put your focus where it matters most: building your dream retirement.
Here's what to do next if you're ready to combine your super into one account:
Once you've chosen a fund that's best suited to you, simply reach out to them to get the ball rolling. If that's us, we'll contact any other funds you have super with on your behalf and transfer all balances into one account. With your super savings all in the one place, you can make even better investment choices for your dream retirement.
Before you consolidate
Think about whether it’s right for you. You'll lose access to benefits such as insurance or pension options, and you need to consider tax implications.
Still undecided? No worries. You could run a super search in myGov to find any unclaimed super with the ATO and go from there.
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