Written

For

The

Australian

-

Why

hunting

your

lost

super

is

a

worthwhile

pursuit

Would you believe there is $17.8bn of superannuation sitting in limbo across Australia right now? That's not a typo. One in three adults has a lost super account, with an average balance of $2,500 waiting to be claimed.

The problem often starts innocently enough. You change jobs, move house, or switch email addresses, and suddenly your super fund can't find you. For younger Australians in their 20s and 30s, retirement feels like a distant concept, so super arrangements get neglected. But this isn't just a young person's problem — the ATO is currently holding $471m on behalf of Australians aged 65 and over.

Here's what actually happens when your super gets classified as lost. If your balance is above $6,000, it stays with the fund but your life insurance is likely cancelled after 16 months, and lapsing death benefit nominations expire after three years. For smaller balances, after 12 months of no contact the fund sells the investments, cancels insurance, voids beneficiary nominations, and ships the money off to the ATO. Once it's parked there, it only grows at the rate of inflation — currently 3.5 per cent — rather than being invested for real returns.

The estate planning implications concern me even more. Superannuation is often the most valuable asset in an estate, yet lost super can derail your wishes entirely if your family doesn't know where to look.

My advice is simple: treat your super like your bank account. You wouldn't let an employer open a new bank account every time you changed jobs, so why let them open a new super account? Log into MyGov, check for lost super with the ATO, consolidate multiple accounts, and update your beneficiary nominations.

At an 11.5 per cent super guarantee, ignoring your super is effectively wasting four hours of work every week. Retirement sneaks up faster than you think.