Australians “Lost” $16 Billion in Superannuation Funds in 2014
Announcement posted by Approved Financial Planners 14 Jan 2016
Superannuation advisors in Perth reveal why people are losing their supers and how to find them.
Perth, WA, 14 January 2016 - The Australian Taxation Office (ATO) revealed statistics for 2014 that may come as a surprise to you. According to the ATO, $16 billion was “lost” by Australians in superannuation accounts. These are known as “lost supers.” (1)
This money is just sitting in unclaimed superannuation accounts, waiting to be claimed by the people who own the accounts. Many Australians may have “lost supers” and not even know about it. (2)
Each job has its own super fund. When people change jobs, they sometimes forget about their super. A person who has had multiple jobs often has multiple supers. Each of these supers is taking out various charges and fees. These can add up to thousands of dollars over a working lifetime. (2)
An Australian with multiple or “lost” supers can save thousands of dollars by consolidating them into one account. The money they save on fees is compounded and can rise exponentially over a working lifetime. (2)
How Superannuation Funds Become “Lost”
As mentioned before, changing jobs is a common way that supers become lost. But they can also become lost because someone changes their address or their name. The criteria for a super fund member being reported to the ATO as “lost” are as follows:
The super fund cannot contact the member.
The fund has not recorded any activity in the form of contributions or rollover accounts from the member in five years.
The member shifts the account to a new super fund as a “lost super,” but the new super can’t contact the member. (2)
What is an “Unclaimed Super?”
The money from lost supers remains in the super fund. However, there are multiple sets of circumstances in which the monies in a lost super are turned over to the ATO. In this case, the monies stay with the ATO until claimed. One example is an account holding less than $2,000 with no contributions in the preceding year and insufficient data to identify the holder of the account. (2)
Benefits of Claiming a Lost Super
One of the many benefits of claiming a lost super is that it allows the account holder to consolidate the “lost super” into their current account. This cuts down on fees. The money saved on fees is invested and compounded over a period of many years and can increase exponentially. (2)
Consolidating all of one’s supers into one superannuation account also makes it easier for the account holder to track their finances. (2)
Finding a Lost Super
One or more lost supers can be found by contacting every former place of employment and having them check their records. The super could be with a state, a territory or the ATO. The Australian Securities and Investments Commission (ASIC) can also aid in finding lost supers.
According to Daniel Stevens, Financial Planner at Approved Financial Planners in Perth: “Perhaps the easiest way to find and consolidate lost supers is to contact a qualified financial planner.”
Approved Financial Planners offer superannuation help and a full menu of financial planning services to their clients in the Perth area. They are backed by the resources of AMP Capital. The financial planners and advisors in their Perth area office have more than 80 years combined financial industry experience. To learn more, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
(1) Australian Taxation Office--Research and statistics. Super accounts data overview, 2015.
(2) AMP Capital. How do I find my lost super? https://www.amp.com.au/personal/super-and-retirement/services/find-lost-super
Approved Financial Planners
Daniel Stevens, Authorised Representative and Credit Representative of Approved Financial Planners Pty Ltd ABN: 52 116 910 528, trading as Approved Financial Planners, Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327, Australian Financial Services Licence 232706 and Australian Credit Licence 232706.
General Advice Warning
What you need to know.
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.
This money is just sitting in unclaimed superannuation accounts, waiting to be claimed by the people who own the accounts. Many Australians may have “lost supers” and not even know about it. (2)
Each job has its own super fund. When people change jobs, they sometimes forget about their super. A person who has had multiple jobs often has multiple supers. Each of these supers is taking out various charges and fees. These can add up to thousands of dollars over a working lifetime. (2)
An Australian with multiple or “lost” supers can save thousands of dollars by consolidating them into one account. The money they save on fees is compounded and can rise exponentially over a working lifetime. (2)
How Superannuation Funds Become “Lost”
As mentioned before, changing jobs is a common way that supers become lost. But they can also become lost because someone changes their address or their name. The criteria for a super fund member being reported to the ATO as “lost” are as follows:
The super fund cannot contact the member.
The fund has not recorded any activity in the form of contributions or rollover accounts from the member in five years.
The member shifts the account to a new super fund as a “lost super,” but the new super can’t contact the member. (2)
What is an “Unclaimed Super?”
The money from lost supers remains in the super fund. However, there are multiple sets of circumstances in which the monies in a lost super are turned over to the ATO. In this case, the monies stay with the ATO until claimed. One example is an account holding less than $2,000 with no contributions in the preceding year and insufficient data to identify the holder of the account. (2)
Benefits of Claiming a Lost Super
One of the many benefits of claiming a lost super is that it allows the account holder to consolidate the “lost super” into their current account. This cuts down on fees. The money saved on fees is invested and compounded over a period of many years and can increase exponentially. (2)
Consolidating all of one’s supers into one superannuation account also makes it easier for the account holder to track their finances. (2)
Finding a Lost Super
One or more lost supers can be found by contacting every former place of employment and having them check their records. The super could be with a state, a territory or the ATO. The Australian Securities and Investments Commission (ASIC) can also aid in finding lost supers.
According to Daniel Stevens, Financial Planner at Approved Financial Planners in Perth: “Perhaps the easiest way to find and consolidate lost supers is to contact a qualified financial planner.”
Approved Financial Planners offer superannuation help and a full menu of financial planning services to their clients in the Perth area. They are backed by the resources of AMP Capital. The financial planners and advisors in their Perth area office have more than 80 years combined financial industry experience. To learn more, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
(1) Australian Taxation Office--Research and statistics. Super accounts data overview, 2015.
(2) AMP Capital. How do I find my lost super? https://www.amp.com.au/personal/super-and-retirement/services/find-lost-super
Approved Financial Planners
Daniel Stevens, Authorised Representative and Credit Representative of Approved Financial Planners Pty Ltd ABN: 52 116 910 528, trading as Approved Financial Planners, Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327, Australian Financial Services Licence 232706 and Australian Credit Licence 232706.
General Advice Warning
What you need to know.
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.