Did you know there’s around
$16 billion in lost and unclaimed super
in Australia? Yep, many Australians are missing out on part of the
super they need to retire comfortably
. It’s not surprising, though.
You’ve probably noticed that superannuation in Australia has changed many times over the last decade. Changing regulations has meant super funds have made their own changes to adapt. This has looked like restructures, fund mergers, and name changes. It’s hard to keep up! And if we’re not tracking our super closely, our super accounts can get lost in the process.
If you’ve lost track of one or more of your super accounts, it’s likely it’s now unclaimed super. Maybe you’ve felt prompted to search for your unclaimed super as you take control of your finances. Maybe your financial adviser has picked up on a shortfall of your super balance that doesn’t add up. Whatever brought you here, you’ll leave with the 101 of unclaimed super.
What is unclaimed super?
Unclaimed super is when super accounts become inactive or lost. There are a couple of conditions that apply for your super to become “unclaimed”. The first is your super fund has lost contact with you. The second is there’s been no activity or contributions to your account for five years.
What happens to unclaimed super?
After loss of contact and inactivity for five years, super funds are required to transfer unclaimed super to the Australian Taxation Office (ATO). Rest assured that if your super is lost, it hasn’t disappeared into thin air!
The ATO holds on to these funds on your behalf until you reclaim them. While they hold on to your funds, the ATO proactively works to reunite you with your super savings. This includes a matching process using various data sources to link the unclaimed super to you as the rightful owner. Otherwise, you can search for unclaimed super yourself by following the instructions on the ATO’s website (more on that below).
Causes of unclaimed super
There are a few reasons why super accounts become unclaimed. Common causes are:
- Changing jobs – many people move from one employer to another without taking their super with them. This can result in multiple super accounts across different funds. The more super accounts you have, the harder it is to keep track of them.
- Moving house – relocating to a new address comes with a lot of paperwork, including updating your contact details with various providers. It’s easy for your super fund to slip your mind and to lose contact over time.
- Super fund changes – if you’re not informed about recent changes to your super fund (e.g. mergers), you may lose track of your account.
Maybe one of these scenarios applies to you. If so, you might want to search for any unclaimed super, so you don’t lose out on retirement savings.
How to search for unclaimed super
There are a couple of ways you can search for unclaimed super online:
- Ask your current super fund to perform a search for you. You’ll want this to be the super fund you prefer to hold all your super money with. Once they find any unclaimed super, they’ll consolidate this money into your account with them.
- You can also search online through myGov . After linking your myGov account to the ATO, click on ‘Check super’. This shows you details of all your super accounts and any super held with the ATO. You can then consolidate into one fund.
If you prefer a less digital approach, the ATO also provides phone and paper-based options to find your unclaimed super.
Impact of unclaimed super on retirement savings
Leaving your lost super unclaimed can have negative impacts on your retirement savings. You may miss out on investment earnings over time as unclaimed super isn’t actively invested in a fund. In the years leading up to super becoming unclaimed, your super balance could be eroded by fees and other costs.
It’s important to regularly check and consolidate your super accounts to prevent them from reaching “unclaimed” status. Also, keep your contact details with your super fund up to date so your retirement savings reach their full potential. Financial independence isn’t just about long-term investing - it’s about keeping an eye on your super, too.
