Winning from losing
Recovering your money now can add up later, writes
MILLIONS of dollars in retirement savings are slowly being clawed back by their rightful owners and it’s helping fatten our superannuation balances.
Australians still have a giant $14.8 billion in lost super, and despite this amount falling by 12 per cent in the past two years there’s still a long way to go.
Westpac data shows that since it launched its SuperCheck online service to reunite customers with their missing super savings, more than 14,000 people have got back more than $247 million of their retirement money. This is an average of $1700 per account.
Westpac’s general manager of superannuation, Melinda Howes, said it was great to see more Australians taking action and getting back in control of their superannuation savings.
“We have a new service where people can now find all of their super, not just their lost super,” she said. “There’s some super out there that people may not see as lost but they didn’t remember they had it.
“Now in less than a minute ■ Check your super accounts by registering for the ATO’s online services via MyGov or contact your current super fund for help.
■ Once you log into your MyGov account you can see all your super accounts and
you can find all of your super, consolidate it and bring it together.”
Lost or inactive super account balances under $6000 must be transferred to the ATO until they are claimed back by its rightful owner.
An account is deemed “lost” balances held by the ATO.
■ You can consolidate your account(s) into your preferred super account.
■ You can also ring the ATO on 13 10 20 to check your accounts and find any unclaimed super in your name.
when it has been inactive for 12 months and there is no possibility the fund can pay the lost member their funds.
Ms Howes said the most common reasons behind people losing super included starting a new job, moving address or changing their name.
Cleaner Rosemary Cooke, 42, discovered several of her super accounts she was unaware of. She rounded up $4000 in missing super and tipped it all into her main super account.
“It was just one click and it transferred everything over. Money was in my account within days,’’ she said.
The Australian Institute of Superannuation Trustees’ chief executive Eva Scheerlinck urged everyone to check to see if they had missing super.
“Every dollar counts in superannuation, so finding even small amounts of lost super sooner rather than later in life can make a big difference to your balance come retirement time,’’ she said.
of about 7.15 per cent, but now it had jumped to between 7.5 and 8.25 per cent.
This means that while you might be paying only 5 per cent on a $350,000 mortgage, costing $2046 a month, a bank won’t lend you money unless you can afford $2760 a month.
Australians often underestimate their spending when applying for mortgages, and lenders are becoming more vigilant by checking income and spending against bank and credit card statements.
“The psyche in this country is people want to max out the amount of money they can borrow,” Mr Bouris said.
“Discretionary spending is increasing but expenses are getting so close to incomes because wages have been flatlining for five or six years.”
Mr Bouris said people should realistically assess their own expenses before approaching a broker or bank. “Don’t walk in and be unpleasantly surprised. Know what your cash flow is.”
People should also consider cancelling unused credit cards or lowering card limits because the full limit was assessed in mortgage applications, Mr Bouris said.
Oracle Lending Solutions director Angelo Benedetti said banks were demanding more data about potential borrowers’ living expenses.
“It’s getting harder – the banks are requiring more information and APRA is tightening the rules and regulations – they don’t want loans to blow out,” he said.