Starting a new job
The average Australian changes jobs 12 times in their lifetime. When you change jobs, there are important financial decisions to consider. We’ve put together our top tips covering some of the main ones including the one many seem to overlook - looking after your super.
Changing jobs can be exciting. But don’t lose sight of keeping your finances in check so that when you do change roles the transition is relatively stress-free.
Changing jobs is the new normal
It used to be normal for people to stay in one or two jobs for most of their working life. These days not only is changing jobs common but so is changing careers.
With businesses increasingly hiring casual or contract workers to suit seasonal requirements such as Christmas or harvest time, there's often an increase in staff turnover. With this comes fewer full-time opportunities and employees often working more than one job to make ends meet. Frequent change can mean your finances become a bit disorganised. There are steps you can take when you're changing jobs to help keep your finances in order.
It might sound obvious but confirming a few key administration details before you start and finish a job will make it much easier to take control of your finances later.
Confirm your new wage
When you find a new job, check if the salary includes or excludes superannuation. The Superannuation Guarantee (SG) – which is what your employer pays into your super – is 9.5% as long as you meet the eligibility criteria. By understanding the breakdown of your salary, you'll have a better idea of what your take-home pay will be.
Finalise your last pay
Once you finish up at a job, check your final payslip to make sure it includes any leave you're owed, and your final super contribution has been paid. You can usually log in to your super account to check this as well.
Choose where your super goes
Most employers allow you to choose your own super fund. This is especially helpful if you want to stay with the one you’re already with. If you don't tell your new employer what fund you want to be with, they'll sign you up to what they use as their 'default fund'. The choice is yours! So, if you’re changing jobs and want to keep your LUCRF Super account, complete the Choice of Fund online form by clicking the button below and we’ll email you the completed form to give to your new employer. They’ll do the rest.
Not a member yet?
You can still let your new employer know that you want to become a member. Complete the online form by clicking the button below, we’ll email you the completed form to give to your new employer. They’ll do the rest.
How super can help
Now might be a good time to find out if you have any super accounts you don’t know about. If you have multiple accounts, you may be paying fees to several super funds which could eat into your savings. By having just one account, it’s easier to keep track of your super. There are a few things to consider before combining your super account – you can learn more here.
If you've changed jobs, you might have also changed work categories. Review your insurance cover through your super to make sure it still suits you and your work requirements.
If you’re lucky enough to be earning more in your new job, it might be a good time to look at how you can grow your super. Salary sacrificing, for instance, is an optional super contribution which comes out of your pre-tax wage. If you can afford it, it’s a great way to help you save for retirement.
Next steps to consider
Take your super with you when you’re changing jobs
Consider consolidating into one super fund
Review your insurance cover
Think about contributing extra
Here’s a handy checklist if you’re changing jobs
Check your final payYour previous employer is required to pay out any leave you haven’t taken and are entitled to.
What’s your new wage?
When you’re finalising your contract, make sure you check if the amount includes your super.
Let people know where you go
Let your colleagues know where you’re going and – if you think it’s appropriate – give them your contact details. It’s always nice to keep in touch with your old work mates!
Insurance between jobs
You may be covered by insurance through your super fund. Now might be a good time to review your default insurance cover and any Income Protection you might have.
Your new employers super fund
Employers will have a default super fund they’ll pay your super into if you don’t choose your own. It’s easy to take your super with you
Stay with LUCRF Super1 mins
Leave a good impression
Regardless of why you’re leaving your job, it’s always good to leave on a positive note. A smile and thank you goes a long way in showing respect.
We can help with your super.Get in touch
Average change of job based on Australian Institute of Business article, 24 July 2018.