Money
You might be richer than you think – check your lost super
Nearly $19 billion in lost super is sitting around waiting to be claimed. Some of it could be yours.
By Bron Maxabella
Every few months, the ATO drops a number that makes most of us splutter into our coffee. This time it’s $18.9 billion. That’s how much lost and unclaimed super is floating about Australia, waiting patiently for its rightful owners to show up. It’s spread across almost 7.3 million forgotten accounts, which means there’s a good chance a little slice of it belongs to you.
So how does money we earned, saved and contributed just… disappear? It usually happens when we change jobs and accidentally start a new super fund, forget to merge the old one, move house and neglect to update our details, or simply drift away from the paperwork.
“Your super can become lost if your account is inactive, and your fund can’t contact you,” says ATO Deputy Commissioner Ben Kelly. “If you’ve changed jobs, moved house or simply forgotten to update your details, you may have lost or unclaimed super.”
Why we should care (a lot)
If you’re between 40 and 65, this isn’t small change. This is your money, and it’s one of the simplest wins you can score in retirement planning. Here’s why.
First, it’s practically free money. You don’t need to earn it, invest it or manifest it; you just need to find it. Second, it can make a real difference over time. Even a few thousand dollars reclaimed now can grow significantly by the time you retire and beyond, especially when compounding gets to work.
And finally, bringing your super accounts together means fewer fees nibbling away at your savings, fewer statements clogging your inbox and a much clearer view of where you actually stand.
How to find your missing millions (okay, maybe hundreds)
Tracking down lost super is actually super easy. “Superannuation is one of the most important investments you make in your lifetime, and we want to ensure every dollar earned for retirement ends up where it belongs,” says Mr Kelly.
All you need is a myGov account. Once you’ve logged in, link it to the ATO and head to the “Super” section. In seconds, you’ll see every super account in your name, including any that have gone walkabout.
From there, you can choose to roll any lost funds into your active super account. But before you do, double-check the details. Some old funds come with insurance you might still want, or investment options that differ from your current setup. A quick comparison is all it takes to make sure you’re not accidentally giving up something valuable.
And while you’re in there, make it harder to lose super again. Update your address, email and phone number with your fund and make sure your Tax File Number is on record. It’s the simplest form of super hygiene you can do.
Don’t let small balances fool you
Plenty of people think their old accounts aren’t worth the effort – a few hundred dollars here, a few thousand there. But those bits and pieces can add up fast. Combine a few forgotten accounts, give them a few more years to grow, and you might be staring at an extra holiday (or three) in retirement.
And remember: while your money is sitting lost, it’s not earning much. Consolidating it into your main fund means it starts working again and isn’t chewed up by duplicate fees.
The great super treasure hunt
Super might not be the most thrilling topic in the world, but think of this as a treasure hunt where you already own the treasure. The ATO has made it easy, so take five minutes, log in and check.
The ATO’s 5 step Super health check can help you get your super back where it belongs in just a couple of minutes.
To complete the checklist, all you need to do is:
- Confirm your contact details
- Check super balances and employer contributions
- Look for lost and unclaimed super
- Find multiple accounts and consider consolidating
- Confirm nominated beneficiaries
For more information visit Super health check on the ATO website.
Because that forgotten account from your first full-time job? It might just be the easiest financial win you’ll ever have.
This article reflects the opinions and experiences of the author and does not necessarily reflect the views of Citro. It contains general information only. It is not financial advice and is not intended to influence readers’ decisions about any financial products or investments. Readers’ personal circumstances have not been taken into account and they should always seek their own professional financial and taxation advice that takes into account their financial circumstances, objectives and needs..
Feature image: iStock/Lincoln Beddoe
Tell us in the comments below: Did you check and find any lost super?
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