Unclaimed super has generated over $100 million in fees, a research firm has found.
Lost superannuation has reached the $5.6 billion mark with another 423,000 unclaimed accounts created in the past year, according to a report by SuperRatings.
These unclaimed accounts, called eligible rollover funds (ERFs) now total 5 million and hold an average balance of $1,096 per member.
Membership growth has accelerated from 3.74 per cent in 2005/06 to 8.94 per cent in 2006/07, according to the SuperRatings report.
At the same time, more than $100 million in fees have been generated from these accounts.
"Fees remain excessive in many cases given the amount of work involved in managing these accounts," SuperRatings managing director Jeff Bresnahan said.
SuperRatings has awarded the industry super-backed fund, Ausfund (a main ERF) a platinum rating, the highest rating offered by the firm.
"What makes Ausfund stand out from the other ERFs is our investment returns and low fees. We are also proactive in searching for lost members," Ausfund managing director Warren Fawcett said.
"We believe the Government and regulatory bodies need to look at this area. It's obviously a problem, as we keep getting bigger," he said.
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