Yes, you can have two super accounts. There is no law stopping you from holding super in more than one fund, and around 4 million Australians already do. But just because you can have two accounts does not mean you should. For most people, a second account means paying two sets of fees and two sets of insurance premiums for no extra benefit.
In this guide, we explain how people end up with two super accounts, what it costs, the few cases where keeping two makes sense, and how to combine your super if you decide one account is enough.
How Do People End Up With Two Super Accounts?
Most people do not set out to have two super accounts. It usually happens by accident:
- Changing jobs. Before November 2021, if you started a new job and did not tell your employer which fund to use, they could open a brand-new account for you in their default fund. Each job change could add another account.
- Not nominating a fund. If you leave the choice blank on your new job’s paperwork, your employer pays into a default fund rather than your existing one.
- Working two jobs at once. Part-time or casual workers sometimes end up with a separate account for each employer.
- Personal choice. Some people deliberately open a second account to keep a particular insurance policy or investment option.
Since 1 November 2021, “stapling” rules have made accidental second accounts much less common. We explain stapling below.
What Are the Downsides of Having Two Super Accounts?
1. You pay fees twice
Every super account charges administration fees and investment fees. With two accounts, you pay both sets. Even a modest fee on a second account adds up over a working life, because that money is no longer invested and growing for your retirement.
2. You may pay for insurance you do not need
Most funds provide automatic default insurance, such as death cover, total and permanent disability (TPD) cover and income protection. Hold two accounts and you may be paying two premiums. Worse, you might not even be able to claim on both: some income protection policies reduce or refuse payment if you are already receiving a payment from another policy.
3. Your money is harder to keep track of
Two balances, two sets of statements, two logins and two lots of paperwork make it easy to lose sight of part of your retirement savings. Accounts you forget about can become “lost super” over time.
4. An inactive account can be moved to the ATO
If an account holds less than $6,000 and has not received a contribution or any other activity for 16 months, the fund may be required to transfer it to the Australian Taxation Office (ATO). Your money is not gone, but it is no longer invested with a fund and you will need to track it down and claim it back.
When Does Keeping Two Super Accounts Make Sense?
There are a few genuine reasons to keep a second account open:
- You are in a defined benefit fund. Some older-style funds pay a benefit based on your salary and years of service rather than your balance. Closing such an account can mean giving up a valuable entitlement, so check before you move anything.
- You need the insurance in one fund. If one account holds cover you could not easily replace, for example because of a health condition, it may be worth keeping it and paying the extra premium.
- You want different investment options. A second fund might offer an investment choice your main fund does not. This is rarely a strong reason on its own, since most large funds offer a wide menu of options.
If none of these apply to you, one account is usually the simpler and cheaper choice.
What Is Super Stapling?
Super stapling started on 1 November 2021 as part of the government’s Your Future, Your Super reforms. In simple terms, your existing super account is “stapled” to you and follows you from job to job.
When you start a new job and do not nominate a fund, your employer must check with the ATO for your stapled fund and pay your contributions into it. They can only use their own default fund if you have no stapled account at all. You can still choose a different fund at any time — stapling does not lock you in, it just stops a new account being opened for you by default.
Should You Combine Your Super Accounts?
For most people, yes. Combining your accounts into one fund means one set of fees, one insurance premium, one statement and one balance to watch. It also reduces the chance of an account drifting off into lost super.
Before you combine, do these checks:
- Compare insurance first. Make sure the fund you are keeping gives you the cover you need. Once you close an account, its insurance ends, and you may need to pass health checks to get the same cover elsewhere.
- Check for fees or tax effects. Ask both funds whether anything is charged to roll your balance over, and whether the move has any tax consequences for you.
- Check your employer arrangements. In rare cases an employer covers the fees or insurance premiums of a particular fund. Closing that account could cost you that benefit.
- Do not close a defined benefit account without advice. If either account is a defined benefit fund, get professional advice before moving the money.
You can usually combine accounts through your chosen fund’s website or app, or through your myGov account linked to the ATO, where you can see every super account held under your tax file number and request a rollover.
Frequently Asked Questions
Can I have two super accounts with the same fund?
It is possible in some cases, for example if you hold both an accumulation account and a pension account, but most funds will simply hold one accumulation account per member. If you somehow end up with two, your fund can usually merge them for you.
Can my employer force me into their default fund?
No. You have the right to choose your super fund, and you can change your nominated fund at any time by giving your employer a standard choice form. If you do not choose, your employer pays into your stapled fund, or their default fund if you have no stapled account.
What happens to my second account if I stop working?
It stays open, and fees keep coming out of the balance. If the balance falls below $6,000 and the account sits inactive for 16 months, it may be transferred to the ATO as lost super. You can still claim it back, but it is far better to combine it into your main account while you are still paying attention to it.
Is it better to have one super account or two?
For most people, one account wins: lower fees, one insurance premium, simpler paperwork and less chance of losing track of your money. Two accounts only make sense when the second one protects something valuable, like a defined benefit entitlement or insurance cover you cannot replace.
The Bottom Line
Yes, you can have two super accounts, and millions of Australians do. But unless the second account is protecting a defined benefit entitlement or insurance cover you need, it is usually just costing you extra fees. Check what you hold through myGov, compare the insurance before you move anything, and combine your super into one account if the second one is not earning its keep.
This article is general information only and is not personal financial advice. If you are unsure about combining your super, consider speaking with a licensed financial adviser.
