Starting a new job brings plenty to think about. Between meeting new colleagues, learning new systems and tasks and working through the usual paperwork, your superannuation can easily slip down the priority list. But changing jobs is actually a great time to give your super a quick health check. Taking a few minutes now can help you keep track of your retirement savings, avoid unnecessary fees and identify any issues before they become bigger problems.
Check your first few payslips
When you start a new role, you’ll generally be asked for information about your super fund alongside related paperwork like your tax file number declaration and giving bank account details for your salary payments. Once you’re settled in, take a moment to review your first few payslips and check your super account. This can help confirm that your salary, tax withholding and super contributions are being processed as expected. Your first super contributions should arrive in your fund within 20 business days of your first payday, and subsequent contributions within seven business days of each payday. If something doesn’t look right, it’s generally easier to raise questions early rather than months down the track.
Do you have more than one super account?
If you’ve changed jobs a few times over the years, there’s a good chance you’ve accumulated more than one super account. Having multiple accounts may mean you’re paying multiple sets of fees and charges unnecessarily, and can make it harder to keep track of your retirement savings. The ATO provides online services through myGov that allow you to view your super accounts, including lost super and certain super amounts held by the ATO. Reviewing your accounts can help you understand exactly where your super is and decide whether you need further advice about your super arrangements.
Don’t overlook insurance
Many super funds offer different types of insurance cover, such as life insurance, total and permanent disability (TPD) insurance and income protection insurance. Before closing or consolidating any super account, it’s important to understand whether insurance is attached to that account and consider what effect any changes could have on your cover. In some cases, replacing insurance later may be difficult or more expensive. Starting a new job can also be a useful reminder to review the insurance attached to your super, make sure you understand what cover you currently have, and consider if it still suits your situation.
Check for lost super
Changing jobs, moving house and not updating contact details are some of the most common reasons people lose track of super accounts. Even if you’re confident you know where all your super is, it can be worthwhile checking. The ATO’s online services can help you identify lost super and other super amounts being held on your behalf.
A small task worth doing
Super is designed to support you in retirement, but it’s something many people only think about occasionally. Starting a new job provides a convenient opportunity to check that your contributions are being received, your accounts are organised and you understand the insurance attached to your super. If you’ve recently changed jobs and would like to better understand your super position, contact our office. We can help explain the tax and superannuation implications of your situation and, where appropriate, refer you to a licensed financial adviser for personal financial advice.
