Unclaimed super accounts and superannuation holding accounts worth $2.3 billion have been transferred to the ATO, while the remaining $15.9 billion is still being held by super funds.
Colonial First State general manager Geoff Peck said $18.2 billion is a significant number when you consider the amount of fees being paid in these lost or unclaimed accounts.
As a result, CBA’s Essential Super has launched Super Sorter, an online consolidation tool.
“These fees are directly eroding the retirement savings of Australians,” said Mr Peck, claiming a number of superannuation funds charge a dollar-based administration fee of around $1.50 per week or $78 a year.
“When you compound that across four or five accounts, you are looking at around $312 to $390 per year in administration fees alone,” he said.
A campaign conducted by Essential Super found one of its members aged 21 already had 12 different super funds.
Mr Peck said the real value of members finding their super is that ultimately it will form part of their retirement benefits.
“It is actually an individual’s money, they are entitled to it and they should actually have it under their control,” he said.
It can be difficult for an individual to try and get their money back, “simply because they don’t know where to begin”, Mr Peck added.
Research conducted by the Association of Superannuation Funds of Australia also found that one of the biggest challenges for members attempting to consolidate their super accounts is the excessive paperwork and differing rules and requirements involved.
