If you find lost super, you could give your retirement a boost. It might even mean you can stop working a bit earlier and enjoy your retirement that much sooner.
Millions of Australians have more than one superannuation account (super fund). That can mean paying more fees and getting less growth in your savings, for your retirement.
You can find lost superannuation accounts and combine them into just one account. This will make keeping track of your super and growth much easier.
Multiple super accounts are common
How do so many taxpayers end up with lost super?
Many employers have a preferred superannuation fund they use for new employees who don’t nominate their own account. This can happen at each new job someone starts.
Before you know it, ten years down the track you could have multiple superannuation accounts.
18% of Australian super holders have more than one account. The good news is, it’s not as hard as it seems to track down your lost super once you know how.
Why is it important to find lost super?
This one is simple… to get back the money you earned towards your retirement!
Each superannuation provider will charge an administration fee to manage your money. Super funds can also include insurances, which have additional fees. The more super funds you have, the more fees you’re paying, and the less money you’ll have when you retire.
It’s estimated that one in four Australians have some level of lost super. This adds up to approximately $16 billion. That’s a serious amount of money!
Lost super is different to unpaid super
Lost super means money in superannuation accounts that you forgot about, lost track of, or maybe never knew about. On the other hand, unpaid super is when an employer underpays their employees super funds. You can read more about unpaid super here.
How to find lost superannuation money
1. Ask an advisor at your current super fund for help
Your super fund can help you more than you might expect. At many super funds, you can meet with trained specialists for help and advice. Some funds charge a small fee, and sometimes even no fee, to help get your super affairs in order.
2. ATO Lost Superannuation Search
Your super fund will report you as a lost member if they cannot contact you and have not received any contributions over the past five years.
To check if you fall into this category, you can use the Australian Government “Searching for lost super” form.
Please note, this is a limited search and only provides information on “lost super” or “ATO held super”.
I found an old super account. What now?
If you discover that you’ve got multiple super accounts, or find lost super you didn’t know about, you should consider consolidating these accounts as soon as you can. You are likely paying fees on all your accounts, reducing your retirement savings.
Option 1: Let your chosen super fund handle the transfer
With your signed approval, your preferred superannuation provider can request the funds from your other super accounts to be transferred into your preferred account.
Option 2: Do it yourself via the ATO
If you want to take care of it yourself, you can do this through myGov. Before you start, you’ll need to decide which super fund you’d like to stick with and nominate it during this process.
Before you move funds:
Before you decide to move your lost super, we recommend getting advice from a superannuation advisor or qualified financial planner who can help you determine if:
- Any termination or exit fees apply on the account you’re transferring from.
- You have any existing insurance included on the account you’re closing.
- Your current employer can contribute to your preferred fund.
Your superannuation is important – it might be the only money you get when you retire! So, getting it organised, properly invested and managed is worth an hour or two today.
Spend some time to find your lost super or consolidate multiple super accounts. In the long term, you could see your savings grow faster, which means more money to spend when you retire.
Still need help to find your lost super? Send us a message via Live Chat or My Messages in your Etax Account. We’d be happy to help point you in the right direction.
The above article on lost super is general in nature and should not be taken as detailed advice. Before making a decision on superannuation you should seek professional advice from a superannuation advisor or financial planner.
