Your choice between keeping Australian super and KiwiSaver accounts separate or consolidating them depends on long-term plans. Consider tax implications, fees, and seek expert financial guidance to make well-informed decisions.
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“I’m a 34 years old male, I’ve spent the past 10 years living in Australia and moved back to Wellington in Jan. I had a reasonable job in ,AUS approx 85K AUD before bonuses. I have moved back home to do an electrical apprenticeship, and plan on moving back to aus in approx 4yrs once i complete my apprenticeship. I have 2 super funds 1 Australian and 1 with KiwiSaver. My Australian super has approx 48k aud. My KiwiSaver has approx 30k nzd. I am wanting to know what are my best options to do with these? Do I leave them as is? Or do i consolidate both into my KiwiSaver? And then do the same on my return to Australia?“
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Leaving Funds Separately or Consolidating:
Your decision to leave your Australian super fund and KiwiSaver accounts separate or consolidate them into one primarily depends on your long-term plans and financial preferences. Maintaining them separately may be a prudent choice if you intend to return to Australia in approximately four years. It allows you to keep these accounts distinct and potentially manage them according to each country’s specific regulations. However, if you prioritize simplification and ease of management, consolidating your Australian superannuation into your KiwiSaver account can streamline your retirement savings and make it easier to track your investments.
Tax and Fees Considerations:
Transferring funds between superannuation accounts can have tax implications, which vary depending on the rules of Australia and New Zealand. It’s crucial to understand these implications thoroughly before proceeding. Additionally, compare both accounts’ fees and investment options to determine which offers better returns and lower costs. Assess the historical performance of your super funds, as a consistently higher-performing fund may influence your decision. Keep a close eye on potential changes in superannuation regulations in both countries, as these can impact your options and fund transfer rules.
Professional Financial Guidance:
Decisions about your retirement savings are significant and can have lasting consequences. Therefore, it is strongly recommended that you seek advice from a qualified financial advisor with expertise in international financial matters and retirement planning. Such an advisor can provide suited recommendations based on your unique financial situation and objectives. They can also help you navigate the complexities of tax implications, fees, and investment strategies, ensuring you make well-informed choices that align with your financial goals and minimize any potential risks associated with consolidating or leaving your superannuation funds separate.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
