$21 billion in lost super is waiting
More than $21 billion in lost and unclaimed superannuation is currently sitting idle across Australia, according to the latest ATO figures. The average lost account holds around $41,000. Last year alone the ATO reunited more than $1.1 billion with members.
That is real money that could be working harder for your retirement. Tax time is the natural moment to check whether any of it belongs to you.
How super becomes “lost”
Super generally becomes lost when an account becomes inactive and the fund can no longer contact the member. Common triggers include:
Changing jobs and leaving an old account behind
Moving house or updating your phone number without telling the fund
Changing your name
When the fund cannot reach you, the account may be classified as lost. In some cases, the balance is eventually transferred to the ATO to hold until the rightful owner claims it. The money does not disappear; it simply sits waiting to be reunited with its owner.
A five-minute health check
Finding lost super is straightforward and free. The quickest way is through ATO online services via myGov:
Log in to myGov and open the ATO section.
Select Super, then Fund details.
You will see any active accounts plus any lost or ATO-held super linked to your tax file number.
You can also use the ATO app or call the automated lost super search line on 13 28 65. A paper form is available if you prefer.
Many people are surprised by what turns up from old accounts from early jobs, small balances that have grown over time, or larger amounts they had completely forgotten about.
Especially valuable if you are approaching retirement
For clients still decades from retirement, finding lost super is useful. For those at or approaching retirement age it can be particularly meaningful. An extra $20,000 or $40,000 (or more) can make a noticeable difference to the size of the nest egg available to draw on. Even smaller amounts compound further once consolidated into a single active account that continues to earn returns and attract any future contributions.
One important practical warning before you consolidate
If you decide to roll multiple accounts into one preferred fund, check the insurance cover attached to each account first. Death, total and permanent disability, or income-protection cover that comes with a super account can sometimes end when the balance is rolled over. Losing that cover without realising it can leave a gap in your protection at the exact time you may need it most. Speak with your fund or adviser before consolidating so you understand exactly what will transfer and what will not.
The commercial upside is simple
Every dollar sitting in a lost or low-balance account is potentially earning less than it could, or incurring unnecessary fees. Bringing the money into one active account usually reduces fees, improves investment choice, and makes it easier to keep track of your overall position. The ATO’s reunification figures show that when people do the search, meaningful amounts are regularly returned.
The process takes only a few minutes and costs nothing. Given that more than $21 billion is currently waiting to be claimed, the odds that some of it belongs to you are higher than many people expect.
You can start the free search here:
If you would like help interpreting what you find, or advice on whether consolidation makes sense in your circumstances (including the insurance check), just get in touch. A short conversation now can put money back into your retirement savings that might otherwise stay forgotten.
This article was originally published in the 'Your Knowledge' newsletter.
Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Comments