Mercer superannuation report reveals almost one million Aussies missing out on super entitlements

Aussies have been warned to check their superannuation accounts, with an alarming new report revealing nearly one million workers are missing out on their super entitlements. Here’s how you can make sure your nest egg is growing.

Nearly one million Australians are missing out on their superannuation entitlements or failing to put away any money for retirement, alarming new statistics have found.

Analysis from financial services firm Mercer examined new 2016 Australian Taxation Office figures and found almost 400,000 workers eligible for compulsory 9.5 per cent superannuation payments were not paid their entitlements.

In addition to this almost 537,000 self-employed workers neglected to pay themselves any super.

And those left out-of-pocket were either employees or self employed in the following occupations — managers (21 per cent), technicians and trade workers (15 per cent) and clerical and administrative workers (13 per cent).

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Mercer Australia’s partner Jo-Anne Bloch said about 1 in 11 Australia were slipping through the crack when it came to superannuation.

Mercer Australia’s partner Jo-Anne Bloch said the report highlighted compulsory super was failing too many Australians, especially the self-employed who had not tucked any money away at all for their retirement.

“About 1 in 11 Australians are slipping through the cracks,” she said.

“Our data highlights a widespread issue costing Australian workers across all industries billions in lost retirement savings and shines a light on unscrupulous employers.”

The report also found of those 937,000 Australians missing out on super, one in three had no super savings whatsoever and 49 per cent had less than $6000.

The report included examples of Australians describing their experiences of being left without super:

• Liz, 52, “I was paid with super on the pay slip and it wasn’t until after I came back to Melbourne that I realised that nothing had gone into my superannuation account.”

• Harry, 48, “I know myself I don’t have enough super. I think once I have the business more established that’s when I’ll probably start paying myself more super.”

An analysis by Mercer found almost 400,000 workers eligible for compulsory 9.5 per cent superannuation payments were not paid their entitlements. Picture: Getty Images

The Association of Superannuation Funds of Australia’s chief executive officer, Dr Martin Fahy said it was critical all Australians pay attention to their super because they may be left worse off once they stop working.

“The longer unpaid contributions are left, the harder they are to recover,” he said.

“We encourage everyone to talk to their fund to find out what tools are available to help you track contributions and understand what you need to do now, to retire with the lifestyle you want.

“People should check their pay slip, talk to their employer, check with their fund or call the ATO if they are concerned that their superannuation guarantee has not been paid.”

From July 1 people with inactive super accounts with balances less than $6000 will have their money automatically transferred by the ATO into one of their bigger super accounts to prevent Australians holding multiple accounts and paying unnecessary fees.

Multiple super accounts are a long-running problem for Australians who often leave them untouched or may not realise they even exist.

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Originally published as Mercer superannuation report reveals almost one million Aussies missing out on super entitlements