There is a massive $19 billion of unclaimed super sitting in fund managers’ accounts.
Instead of being added to retirement savings, it is churning up fees and administrations costs. Westpac Bank executive Rob Coombe announced in June this year that in Victoria there was almost 4.7 billion waiting to be claimed.
What is Unclaimed Super?
An account is considered to be Unclaimed Super when it has not had any contributions for two years, the fund has made reasonable efforts to contact the owner for at least five years or the account owner has reached the age of 65. There is a high frequency of Australians changing jobs and moving residences. Many lose track of their super money. These uncollected and unclaimed funds are left with the Taxation Office. If you have ever changed jobs or forgotten to notify your fund of a change of address, you could be one of the millions of Australians with lost or unclaimed superannuation.
While it is easy to forget to consolidate super into one account, Mr, Coombe said that almost 16% of people with unclaimed super knew they had money in these accounts but could not be bothered to track it down. In a press release in February 2011, The Hon. Bill Shorten said that there was a one-in-two chance that of the $18.8 billion of lost super in Australia, $3,200 might be yours.