By Oliver Lees
Sunbury residents have close to $12 million in lost or unclaimed superannuation, according to new Australian Taxation Office (ATO) data.
The data, released by the federal government, tracks lost superannuation by postcode as of June 30, 2020.
There is more than $13 billion in unclaimed superannuation across Australia, according to the ATO.
In Hume, 11 postcodes recorded more than $1 million in unclaimed superannuation.
In the Macedon Ranges, Woodend recorded about $2.2 million in unclaimed superannuation while $3.4 million is unclaimed in Kyneton.
Sage Business Group business and wealth strategist Michael Osborne said lost superannuation happens primarily because people don’t appreciate the value of their superannuation funds, or understand how to manage it.
“The nature of work these days, with people moving around, they change funds, especially in hospitality jobs; those small amounts add up,” he said.
“When you’re younger people don’t place importance on super, but it is your money, everyone should be taking more of an interest.
“It’s really your savings, people wouldn’t leave a savings account unattended, but that’s what’s happening with super.”
He added that often superannuation is lost through small changes or errors recorded in logging personal details.
“Super often gets lost when we change funds, or jobs, or address; even getting married and changing your name,” he said.
Former prime minister Bob Hawke was an early advocate for compulsory superannuation, as he worked alongside the Australian Council of Trade Unions (ACTU) in 1986 to achieve a three per cent superannuation contribution from employers.
The current Superannuation Guarantee system was formally introduced in 1991, boosting super coverage to 80 per cent of the population.
As well as providing a financial pillow for retirement, the federal government has recently allowed individuals to draw on their superannuation in times of need, as a response to the financial pressure of the COVID-19 pandemic.
According to analysis released by wealth management company Colonial First State, one-third of its members aged under 30 withdrew early release payments in 2020.
Mr Osborne said it is time for people to put more thought into protecting their superannuation.
“I think when people understand the power of compounding interest, they would give it more focus.”
For more information on finding your lost superannuation, visit: www.moneysmart.gov.au.
