ATO data puts the average lost balance at about $41,000
Aware Super says more than $21 billion in lost and unclaimed super is waiting to be claimed. Australians can also contact Aware Super for help locating and consolidating eligible lost or ATO-held super into their Aware Super account.
Australian Taxation Office data shows the average amount of lost super is around $41,000. Is enough to make a meaningful difference to retirement outcomes.
Aware Super is urging Australians to hunt down what it calls “zombie accounts”. It describes them as super accounts that are technically alive, but not doing much for their owners.
These accounts can sit forgotten for years after a job change, house move or other life event. They may keep charging duplicate fees, or they may sit with the ATO instead of being actively invested for retirement.
“Most people wouldn’t ignore $41,000 if it was sitting in a savings account, but that’s effectively what’s happening with lost super,” Aware Super Head of Protect Jess Rix said.
Rix explained that when a super fund loses contact with a member or an account becomes inactive for an extended period, it may be classified as lost super. In some cases, the money can later move to the ATO as unclaimed super, where it is held until it can be reunited with its owner.
ATO-held super is designed to keep lost or unclaimed money safe. However, it may not be actively invested, which means Australians may miss potential long-term growth.
“When your super ends up with the ATO, it’s safe, but it’s not exactly pulling its weight,” Rix said.
How the five-minute check works
The release labels the process the five-minute “super exorcism”. Aware Super is encouraging Australians to log into myGov, open ATO Online Services, select Super, check for lost or ATO-held super, and consolidate any old accounts into their preferred fund.
Australians can also contact Aware Super for help locating and consolidating eligible lost or ATO-held super into their Aware Super account. Before combining accounts, members should consider whether any account they plan to close includes insurance, because that cover will be cancelled when the old account is closed.
Before consolidating, readers should also consider the effect on their investments and any tax implications, and read the PDS and TMD. They may wish to speak with a qualified financial planner before making that decision.
“Every dollar of super you reunite today is another dollar that can be invested for your future. Left untouched, lost super isn’t just lost money, it’s a lost opportunity,” Rix said.
Aware Super says it is one of Australia’s largest profit-to-member superannuation funds, investing about $245 billion around the world for about 1.3 million members.
