The Federal Government has announced plans to help consumers find their lost superannuation.
A new system, an auto-consolidation or rolling together system, will be implemented in 2009, minister for Superannuation and Corporate Law Senator Nick Sherry said.
At present there are 6.3 million super accounts and $12 billion on the lost super register.
In the last year alone there was $2 billion in lost super, Sherry said.
“The growth in the sector is a great concern as it represents a significant inefficiency in our system,” Sherry told Financial Services Partners financial advisers on the Gold Coast last week.
“Lost accounts represent one in five super accounts. So it’s evident that we need to make a much more,” he said.
The system will only require a person’s tax file number to find declared lost accounts.
However, while the process sounds simple enough, Sherry said there will be significant consultation with the industry before the system is officially approved.
“I’m aware there are some issues of policy of how this is done and there will be consultations with the industry later this month as to how we can introduce this system,” he said.
“I anticipate that we will introduce the system in the calendar year next year.”
