WORKERS flocking to the mining regions to make their fortune are more likely to be losing part of it through unclaimed superannuation holdings, a new report shows.
The Pilbara, Darwin and the north-west region in Queensland are the areas with the highest
proportion of people with lost
superannuation, according to a Westpac report on lost super.
The report showed that high turnover of fly-in fly-out mining workers and employees hired on a shorter-term basis had probably contributed to the Pilbara having an estimated lost super per person of $3332.$3332. By region, inner-Brisbane ranked No. 4 on the list, followed by inner-Sydney and south-eastern WA.
"You've got very high proportions of losses in remote areas when you have people entering those regions for specific work," said Westpac's group head of superannuation, Melanie Evans. "You also have
people entering regions such as the Pilbara having many jobs over their lifetimes. And they're likely to be very mobile within those regions."
The total of unclaimed superannuation last year amounted to $17.4 billion, down from $20.2 billion in 2010, according to data from the Minister for Financial Services and Superannuation.
Closely following the remote regions, inner-city areas are rife with lost super holdings. The biggest category in those areas was under 40-year-old workers, who have had four or more jobs in their first cade of work, Ms Evans said.
"From our research, it is particularly worrying to see the lack of motivation from younger Australians to take ownership of their super given it's money they have earned."
The Westpac research showed that 61.8 per cent of employees under the age of 40 were likely to have lost super, compared with
41.4 per cent of those between
40 and 59. Of those who were 60 and above, only 21.1 per cent were likely to be missing funds owed to them.
New South Wales had $5.36 billion in unclaimed super, ahead of
Victoria with $4.47 billion, according to Westpac. Queensland had $3.18 billion in lost super, compared with WA which had 2.04 billion.
"The best way for people to avoid losing super is to ensure that their super fund has their tax file number," said the Minister for Financial Services and Superannuation, Bill Shorten.
The government offers a tool for people to track down abandoned super holdings, at www.ato.gov.au/superseeker.
In a move to increase Australians' retirement nest eggs, the superannuation guarantee will rise to 12 per cent from its present 9 per cent,
progressively over six years beginning in July 2013.
The passive nature of the superannuation system in which funds are set aside by companies for employees as soon as they start a job often sees employees failing to switch over their holdings when they switch employers.
Super fund tracking group Chant West forecasts that the median growth super fund, with an
allocation of between 61 and 80 per cent in growth assets, will have grown by 1 per cent in the year to June, amid volatile sharemarkets and sinking commodities prices.
Frequently Asked Questions about this Article…
What is 'lost' or unclaimed superannuation and how much is outstanding in Australia?
Unclaimed or 'lost' super is superannuation money that can’t be linked to its owner. According to the article, the total of unclaimed super last year was about $17.4 billion, down from $20.2 billion in 2010.
Which regions have the highest proportion of lost superannuation?
Remote mining regions show the highest proportions of lost super, with the Pilbara, Darwin and north‑west Queensland singled out. Inner‑city areas are also significant hotspots, with inner Brisbane, inner Sydney and south‑eastern WA ranking highly.
How much lost super is estimated per person in the Pilbara and why is it high?
Westpac’s research estimated lost super per person in the Pilbara at around $3,332. The report says high turnover, fly‑in fly‑out (FIFO) work and lots of short‑term hires and mobility in those regions probably contribute to the higher losses.
Which age groups are most at risk of having lost superannuation?
Younger workers are most at risk: Westpac found 61.8% of employees under 40 were likely to have lost super, compared with 41.4% of those aged 40–59 and 21.1% of people aged 60 and above.
Which states hold the largest totals of unclaimed superannuation?
According to the article, New South Wales had $5.36 billion in unclaimed super, Victoria $4.47 billion, Queensland $3.18 billion and Western Australia $2.04 billion.
What practical steps can everyday investors take to avoid losing their super?
Make sure your super fund has your tax file number (TFN) registered, keep track of which funds hold your super when you change jobs, and actively transfer or consolidate accounts rather than leaving multiple inactive balances.
How can I find abandoned or unclaimed superannuation I might be owed?
The government offers a tool called SuperSeeker on the ATO website (www.ato.gov.au/superseeker) that helps people track down abandoned or unclaimed super holdings.
Will changes to the superannuation guarantee or market performance affect my super balance?
The article notes the superannuation guarantee was scheduled to rise from 9% to 12% progressively over six years beginning in July 2013 to boost retirement savings. It also cites Chant West forecasting that a median growth super fund (61–80% in growth assets) would have grown by around 1% in the year to June despite volatile sharemarkets and falling commodity prices—both factors that can influence your balance.
Call 1300 880 160
Start a chat
Schedule a call
