More than 60 per cent of Australians under the age of 40 are likely to have lost superannuation, a figure significantly higher than for those aged between 40 and 59, according to an industry report.
The Westpac Lost Super Report, released yesterday, found almost two-thirds or 61.8 per cent of those surveyed under the age of 40 were likely to have lost super, compared to 41.4 per cent for those aged between 40 and 59, and 21.1 per cent for those 60 or over.
The report also revealed of those younger Australians who knew they had lost super, 54.5 per cent were not attempting to recover their money. The finding highlighted a high level of complacency among that generation, it said.
To coincide with the report’s release, Financial Services and Superannuation Minister Bill Shorten announced updated lost super figures that showed a 14 per cent fall to $17.4 billion from the previously reported total of $20.2 billion.
“The number of lost member accounts fell from 5 million to 3.6 million – a reduction of 28 per cent,” Shorten said.
Westpac Group head of superannuation Melanie Evans said despite the overall reduction of total lost super among Australians, $17.4 billion remained unclaimed.
“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,” Evans said.
“While retirement may seem like a distant issue for many, super will probably be their second biggest investment and they need to realise that taking action now will make a significant difference to their quality of life in the future.”
The report also found two in five or 39.3 per cent of respondents under the age of 50 might not know if they had any unclaimed super.
“In general, there is lack of engagement around retirement planning across all generations, with the majority of people surveyed seriously underestimating how much super they will require to live comfortably when they stop working,” Evans said.
Despite the report revealing 52 per cent of Australians surveyed believed they would need less than $600,000 to retire comfortably, that figure was too low.
Evans said a retirement with a yearly income of $45,000 would mean women would need $740,000 and men $680,000.
“Australians need to understand that their lost super is their lost money,” she said.
“No-one would throw away thousands of dollars on the street, so why would you be happy to do this when it comes to your super?
“While it’s quite easy to lose track of superannuation when you change names, jobs or move house, the process to reclaim it is simple and the resulting benefits are considerable.”
