Financial planning

Lost superannuation and free money. It’s time to collect yours!

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In this final interview, Balance finance contributor Dianne Charman talks about lost superannuation and why you shouldn’t leave “free money” on the table.

What is lost superannuation?

Did you know that in 2014 there were approximately six million ‘lost’ superannuation accounts which contained over $16 billion in total?1 This means there is more than $16 billion in unclaimed super just sitting there, waiting for the proper account holder to claim it. You might have unclaimed superannuation savings you didn’t even know about.

Many Australians hold multiple active super accounts, and each fund attracts its own fees and charges. This means you probably have your super monies scattered through multiple active and lost super funds, and over the duration of your working life this could cost you thousands of dollars. If you find your lost superannuation and consolidate it into a single account, you might save yourself thousands of dollars.

Why should I find lost superannuation?

The financial advantages can be considerable if you find your lost super. It will allow you to consolidate your superannuation into one account, potentially saving you thousands of dollars over the duration of your working life. Each super fund carries its own fees and charges, so it makes sense to consolidate.

Many people believe it is not worth the hassle, because they think their lost super accounts will only contain a small amount of money. But this attitude ignores compound interest, which could grow superannuation exponentially over a person’s lifetime.

Another major benefit of consolidating your super funds is that this allows people to more easily track their finances. You can also make sure that your money is sitting with the super fund of your choice. For example, when your unclaimed funds sit with the ATO, you have no control over your super; but if your money is consolidated with a super fund, you can choose the product which best suits your needs and goals.

(Source: https://www.amp.com.au/personal/super-and-retirement/services/find-lost-super)
Read more from AMP about superannuation
1 Australian Taxation Office, Research and statistics―super accounts data overview, 2015.

“(Lost superannuation) It’s not really free money in that respect because it was your money to begin with,” said Dianne.

“The free money to me is what are we missing out on,” said Dianne.

“Some employers offer incentives that if you put a little bit extra into your super, they will match it, so that’s free money right there,” said Dianne.

Deb and Dianne then suggest additional ways of contributing to your financial security by negotiating favourable superannuation and bonus terms with employers who are willing to provide incentives.

“There is money that’s come to you from working hard, let’s not squander it,” says Dianne.

Dianne and Deb go on to discuss that with a little effort you reap the rewards of companies and organisations offering “free money”.

“I love the concept of free money because it’s amazing where you find it,” says Dianne.

“People give you cash backs and coupons,” said Dianne. “At the end of last year, you go and buy an appliance and they give you $30 back,” said Dianne.

“It was a bit of effort but I got my $30,” said Dianne. “It may not sound like a lot, but it’s my money isn’t it?”

Lost superannuation and free money. It’s time to collect yours!

*Dianne Charman is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706.
Any advice given is general only and has not taken into account your objectives, financial situation or needs.  Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.

About Dianne Charman

Dianne Charman believes in empowerment through knowledge. Building confidence in your financial world. With over 20 years’ experience in the Financial Planning profession, and over 10 years as a practicing Certified Financial Planner, Dianne’s specialist qualifications include Self-Managed Superannuation Funds and Direct shares. She has also held senior roles in funds management, insurance, superannuation; and now is the Director of Jade Financial Group. A family orientated business, working hard to provide Clients with, honest, long term financial advice in order to turn their goals into reality.
In 2010 Dianne founded the Jade Kids Foundation – a not for profit organisation helping our next generation to make better money choices for a secure financial future. Dianne is a proud member of the Association of Financial Advisers (AFA) and in 2012 and 2013 was a Finalist in the AFA Female Excellence in Advice Award. Now Dianne sits on the board as the AFA’s Queensland Director, helping to provide its members with a voice and to continually improve practices. Particularly, Dianne is committed to improving Financial Literacy and leads the AFA Financial Literacy Working Group on important issues for women and our elderly.

Balance Team

This article was written by the brains trust of Balance . We are a talented team of writers and contributors with real life experience and a passion for finding balance.

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