More than 2.74 million Australians have ‘lost’ some or all of their retirement savings, due to changing employers and forgetting to consolidate their superannuation.
More than 2.74 million Australians have ‘lost’ some or all of their retirement savings1, due to changing employers and forgetting to consolidate their superannuation.
This can be a particular issue for women who often have small and multiple superannuation accounts due to changing employers after family breaks or returning to the workforce on a casual and temporary basis. According to a recent report, right now, 36% of working mothers are utilising flexible working arrangements such as part-time work and job-sharing2.
The total amount of ‘lost’ superannuation has now reached a staggering A$6.9 billion3, at a time when many people are discovering they don’t have enough superannuation to support them throughout their retirement years.
Many people know they have additional super ‘somewhere’ but haven’t got around to actively transferring it. Instead they continue to receive three or four sets of superannuation reports and only make the effort to quickly glance at their balance.
According to Norwich Union Australia’s general manager group product distribution, Shaun Williams, this is bad news for members of superannuation funds everywhere.
"With the downturn in investment markets it really is time for all of us to get our individual finances in the best shape possible – we need to make the most of what we have and try to minimise exposure to any outside influences.
"And for many, one of the first things to consider getting organised is superannuation.
"If a bank account had suddenly disappeared you would definitely be asking questions about your funds. Well the same thing should apply with superannuation – it is your money and you should take responsibility for it by investing it all in one account, ensuring your total investment works for you," said Shaun.
"In these times of uncertainty, it is frustrating enough for our superannuation balances to suffer from negative returns – but to be hit by multiple fees is a definite double blow."
And, administration fees eating away into numerous funds rather than one total balance can make a significant difference to the sum of your superannuation investment when it comes time to retire.
For most people it is not a difficult process to consolidate superannuation funds. At Norwich Union there is a simple transfer form to fill out and all you need to know is the details of any funds. An independent financial adviser can assist in streamlining this process and ensuring all funds are best placed for long term growth.
And for people who cannot trace old superannuation funds, the Australian Tax Office has a register of lost superannuation money. The Lost Members’ Register can be contacted on 131 020.
"It’s logical to get your money organised and to remember how important your superannuation is. A superannuation sum forgotten for years may be worth a considerable sum when you go to retire," said Shaun.
"Throughout the 1990s investment performance averaged returns of 12%. These outstanding returns cannot be expected in the current climate. There are many factors that influence the world financial markets and we have seen a number of these occur in the past twelve months, including terrorism, war and a health epidemic," said Shaun.
Shaun Williams is available for interview.
For further information, please contact:
Simon Morgan
Group General Manager Public Affairs
(03) 9829 8892
0407 966 632
1Media Release Senator Helen Coonan, Minister for Revenue – Unclaimed Super Recovery Initiative to reunite Australians with missing billions, Canberra, November 2002.
2C Bye. Job Sharing, Herald Sun, March 2002, Melbourne.
3Media Release Senator Helen Coonan, Minister for Revenue – Unclaimed Super Recovery Initiative to reunite Australians with missing billions, Canberra, November 2002.
Note to editors:
- Norwich Union Australia is a group of two specialist financial services companies; Navigator and Norwich Union Life. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company to Norwich Union. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Norwich Union Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is the worlds seventh-largest insurance group and the biggest in the UK. It is the leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$77.3 billion, and more than A$593 billion of assets under management (as at 31 December 2002). The group has more than 59,000 employees and 25 million customers worldwide.