Abandoned super accounts across super funds in Australia add up to about $100 million each year. It is hard to believe that amounts of 10k and more get left behind and completely forgotten by those who earned it.
Australian superannuation mechanics are known to be far from perfect. The system is built around the concept that individuals would take care of consolidating their super. Normally, working people would have one nominated super fund and roll over all other super accounts into it. But what if they don't?
Young Australians and working holidaymakers can't really be bothered with pension days; they take casual employment, move too fast and too often, leaving no room for paperwork. The result is billions of dollars that never get into Australia's economy but get slowly eaten away by administration fees.
Plans for a new system are being pushed forward by Superannuation Minister Nick Sherry. A system that would automatically consolidate super, unless opted out. It seems like a smart move, but until implemented, make sure you take your super with you.