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Australians have $21 billion sitting in ‘zombie’ accounts: How to claim yours
Australians are being urged to claim $21 billion worth of their own money after more than 7 million "zombie accounts" were detected.
- Lost and unclaimed superannuation totalled $21.2 billion across nearly 7.5 million accounts as of 30 June, according to the Australian Taxation Office.
- Double fees and insurance charges can chip away at forgotten accounts, while money held by the ATO may sit uninvested, Aware Super said.
- Around 4 million people had super split across at least two accounts at the end of the financial year.
Australians are urged to track down their missing super after it was found that more than $21 billion in unclaimed money was sitting in 7.5 million so-called “zombie accounts”.
Lost and unclaimed super reached $21.2 billion as of 30 June, according to data the Australian Taxation Office (ATO) released in August, with the average lost balance at around $41,000.
Australia’s third largest super fund, Aware Super, says these forgotten balances can be chipped away by double fees and insurance charges, while money moved to the ATO may sit uninvested.
“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.
“They’re technically still alive, but they’re not helping anyone and, in some cases, they’re quietly draining retirement savings through duplicate fees and insurance premiums,” Rix said.
How super goes missing
Superannuation funds hold and invest the compulsory retirement savings employers pay into workers’ accounts, currently 12 per cent of their earnings and paid each payday since 1 July.
Super most often goes missing when contributions dry up, and a fund can no longer reach the member, according to an ATO statement released in August.
“If you change jobs, move house or switch phone numbers, this can leave super sitting in old or inactive accounts, or result in your super being transferred to the ATO,” ATO deputy commissioner Ben Kelly said in the statement.
Around 4 million people had super split across at least two accounts as of 30 June, while the tax office said it reunited members with more than $1.1 billion last year.
“Holding multiple accounts might not sound like a problem, but it could mean you’re paying multiple sets of fees and insurance premiums, which can draw down your retirement savings over time,” Kelly said.
How to find your lost super
The quickest route is online, according to the ATO’s guide to tracking down missing super.
- Sign in to myGov and open ATO online services, or use the ATO app.
- Head to Super, then Fund details, where your active and lost accounts are listed.
- Look for a Contact fund label next to a fund’s name, which flags a lost account still held by that fund.
- Check for anything marked ATO-held super, which is money your fund has already passed to the tax office.
- Move any old balances into the fund you want to keep.
If you’d rather not go online, you can call the ATO’s automated lost super line on 13 28 65 with your tax file number and past addresses handy, or ask your current fund to search for you.
Anyone consolidating should first check for insurance on the accounts they are closing, since that cover is cancelled along with the account.
Kelly said the average lost balance, “depending on your age,” could “grow to hundreds of thousands of dollars if you put it to work for your retirement where you want it.”
Topics: Finance, money, superannuation