Lost superannuation was back in the news last week, with the revelation there was $19 billion sitting in ‘lost super’ accounts, according to Westpac.
Quite a jump, especially when you consider superannuation researcher, SuperRatings, reported there was $5.4 billion sitting in lost super accounts back in April.
And I’ve previously read the figure was $13 billion.
Whichever research you choose to believe, all figures appear substantial enough to show there’s ongoing apathy towards superannuation.
Not that there’s been much complaint from the superannuation funds, or the tax office.
The super funds continue to cream fees from lost super accounts with balances higher than $1000, often at a higher rate because they’re inactive.
While accounts with a balance of less than $200, or those that have been inactive for five years, are transferred to the tax office.
After being transferred to the ATO, if the money remains unclaimed, it will go into the government black hole of consolidated revenue.
Some small steps have been made to help reunite owners and their accounts.
From the new financial year, super funds will be able to use tax file numbers to alert members they have identified multiple accounts and suggest consolidation.
While the ATO also has a search tool to track lost accounts, this again relies on the motivation of the account holder and that motivation is sorely lacking.
Bizarrely, in the past when some super funds have attempted to take the initiative, through tracking down account holders and pointing out their lost money, the response from many account holders has been inflammatory.
Super funds have been confronted by irate account holders, annoyed they’ve been found and showing no interest in claiming their own money!
I imagine those account holders’ retirements are already well planned.
If you’re interested in finding lost super, you can visit the ATO SuperSeeker search at www.ato.gov.au/superseeker
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL / ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. If you want help with your financial future, we think we’re Australia’s top financial planner.
