Pension Consolidation - Close Old Acct or Leave Running?

Plug on 20/01/2020 - 17:20

I currently have two active funds and am in the process of consolidating them into one. I'm thinking of leaving a nominal sum in the "from" account so as to make it easier to transfer everything back there in the future if necessary. The fund I've decided to consolidate into is PSSap and the one I'm moving away from is BT Super.
PSSap was my previous employers fund of choice, BT Super is my current employers fund of choice.

Is it worth doing this or is it more sensible to close BT completely and just join another fund if and when I need to?

Poll Options expired

  • 16
    Close second fund
  • 0
    Keep second fund open
Financial

Comments

  • HighAndDry on 20/01/2020 - 17:24
    +3

    Most accounts will charge fees which, in this case, will reduce the nominal sum you leave in it to zero pretty fast.

    That nominal sum is basically wasted, no point imo.

  • Ocker on 20/01/2020 - 18:53
    +1

    No sense in having two funds running at the same time - you will be paying two sets of fees.

  • RockyRaccoon on 20/01/2020 - 21:54

    You say pension not super, be very careful if you are retired, as some pensions can/are grandfathered with regard to impacting any government pension. Get advice from professionals or even Centrelink financial officer before consolidation.

    If you haven’t retired then no impact as grandfathering was only for those on already on govt pension

    • bemybubble on 21/01/2020 - 08:47

      ++ this

      Deeming provisions changed 1 January 2015 for centrelink purposes. Might wanna speak to a pro mate.

  • Candour on 21/01/2020 - 08:32

    best close the retail fund and find an industry fund. hostplus and sunsuper seem to have more options for investment and I will use both. check with centrelink fis officers as well. sunsuper will also give you free advice. from a planner, it seems.

  • Plug on 21/01/2020 - 21:49

    Yeah super not pension, sorry. I'm nowhere near retired yet and doubt I'll be able to afford to be so anyway. Work and die I reckon, nothing in between.

  • eclaw on 21/01/2020 - 22:20

    One account is nearly always better than two given you are paying less fees.

    The only time I can think of why some people would want two accounts is:

    1) One account has shown to be superior from a fee and performance perspective (Your go to everyday account) and;

    2) The second account has features that is not offered by (1) - e.g. Your employer may provide you with additional benefits if it is a corporate plan, the insurance is better and/or cheaper etc. etc.

    Most people won't have this issue though but you should still make sure you aren't missing out on anything before you close.

  • SydneySwan on 22/01/2020 - 09:58

    I would definitely close the BT Super account. PSSap is a far better option. Although some of the industry super funds like HostPlus, Australian Super, etc. are better still. Better = lower fees and generally higher returns. However you didn't mention life insurance. If you have this and it is important to you be careful how you consolidate to ensure you always have cover.

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