255. What to do with Old Employer Super Funds: Should You Consolidate Them?

Welcome back to another episode of the 360 Money Matters Podcast! This week, hosts Billy Amiridis and Andrew Nicolaou tackle a question a lot of people have sitting quietly in the background of their finances: what should you actually do with an old employer superannuation fund? Billy and Andrew start by explaining how these old funds usually come about, often set up by default through a workplace with little to no thought behind which fund was chosen, and why the odds of that default fund actually being the right one for you are pretty slim. From there, they unpack the common advice to simply consolidate multiple super funds into one, and why that's not always as straightforward as it sounds. The conversation focuses heavily on the insurance attached to superannuation accounts, an area Billy and Andrew describe as one of the biggest traps in the consolidation process. They share a real client example of how consolidating funds unexpectedly cancelled an income protection policy, and why replacing that cover wasn't as simple as reapplying. They also explain why comparing superannuation performance figures from a fund's website can be misleading, and how to track down and consolidate lost or old super through myGov and the ATO. This episode is for anyone with more than one superannuation fund, or anyone who has an old fund from a previous employer sitting there untouched. It's a practical, cautionary look at a task that seems simple on the surface but can carry real consequences if it's not done properly. Listeners will come away with a clearer understanding of why old employer super funds exist, and why the usual advice to simply consolidate them isn't always the full picture. The episode explains how to weigh up cost savings against the insurance cover you might lose in the process, why comparing superannuation performance figures from a fund's marketing isn't a reliable way to judge a fund, and how to track down lost or unclaimed super through myGov and the ATO. It's a practical guide for anyone wanting to tidy up their superannuation without accidentally losing valuable cover or making a decision based on misleading numbers. This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorised representatives and credit representatives of Akumin Financial Planning – AFSL 232706. Episode Highlights How old employer super funds usually come about, and why they're rarely chosen with your best interests in mind. Why the usual advice to simply consolidate multiple super funds overlooks some important risks. How insurance attached to a superannuation account can be lost if you consolidate without checking it first. A real example of how consolidating super funds led to a client losing income protection cover they couldn't replace. Why comparing insurance across super funds is far harder than comparing fees or investment performance. Why published superannuation performance figures are more of a marketing tool than a reliable comparison. Why your probability of getting favourable insurance terms diminishes as you get older and health issues arise. How to find lost or unclaimed superannuation through myGov and the ATO. Why understanding your overall superannuation strategy matters more than simply chasing lower fees. Connect with Billy and Andrew! 360 Financial Strategists Check out our latest episode here: Apple Podcast Spotify Google Podcast