Leaving a job can be a stressful and uncertain time, especially when it comes to your superannuation. Superannuation is a crucial aspect of financial planning for retirement, and understanding what happens to your super when you leave your job is essential for making informed decisions about your future. In this article, we will explore the ins and outs of what happens to your superannuation when you leave your job and what options you have moving forward.
Understanding Superannuation
Before we dive into what happens to your super when you leave your job, let’s first understand what superannuation is. Superannuation is a way of saving for your retirement and is mandatory for most working Australians. Your employer is required to contribute a percentage of your earnings into your super fund, which is then invested by the fund to grow over time.
What Happens to Your Superannuation When You Leave Your Job
When you leave your job, you have several options regarding what happens to your superannuation:
- Leave your superannuation in your existing fund
- Roll your superannuation over to a new fund
- Consolidate your superannuation into one fund
- Withdraw your superannuation
Leaving Your Superannuation in Your Existing Fund
If you choose to leave your super in your existing fund, it will continue to be invested on your behalf. However, you may incur additional fees or charges for maintaining a small account balance, so it’s essential to review your fund’s terms and conditions.
Rolling Your Superannuation Over to a New Fund
Transferring your super to a new fund is a straightforward process that involves completing a Rollover form with your new fund. This option can help you consolidate your super accounts and potentially save on fees by having all your super in one place.
Consolidating Your Superannuation
If you have multiple super accounts, consolidating them into one fund can make it easier to manage your super and reduce the amount of fees you pay. You can do this by contacting your chosen fund and completing a consolidation form.
Withdrawing Your Superannuation
Under certain circumstances, such as financial hardship or reaching Preservation Age, you may be eligible to withdraw some or all of your super. However, it’s essential to consider the long-term implications of withdrawing your super early, as it can significantly impact your retirement savings.
Final Thoughts
Leaving your job can be a time of transition and change, but understanding what happens to your superannuation can help you make informed decisions about your financial future. Whether you choose to leave your super in your existing fund, roll it over to a new fund, consolidate your accounts, or withdraw your super, it’s essential to consider your long-term retirement goals and seek advice if needed.
Remember, your superannuation is your money for retirement, so it’s crucial to make decisions that will benefit you in the long run. By understanding your options and taking proactive steps to manage your super, you can set yourself up for a comfortable and secure retirement.