Fortune in lost super grows to $12.9bn

IF Australia's lost super funds were evenly distributed, every man, woman and child would receive a cheque for more than $600.

Lost Super

IF Australia's lost super funds were evenly distributed, every man, woman and child would receive a cheque for more than $600.

The fortune contained in abandoned super funds has leapt another $100 million in the past 12 months, taking the total to $12.9 billion.

Queenslanders alone have forgotten about $2.8 billion, while NSW workers have lost track of $4.1 billion.

Superannuation Minister Nick Sherry was so concerned at people who left jobs without taking their super with them he was considering radical action to protect the returns on abandoned accounts.

The abandoned funds, many with upwards of $10,000 in them, were being eaten away by fees as their owners moved to new jobs where new super accounts were created.

"This is a major structural inefficiency in our retirement savings system," Senator Sherry said.

"It has reached the scale it now has because of 12 long years of the Liberal Party either doing nothing about it or misunderstanding the problem."

Senator Sherry said people were entitled to multiple accounts if they wanted them, but the fees charged ate away at potential retirement payouts.

"My preference is for the Government to develop a new system that automatically consolidates people's lost accounts, but with an individual opt-out for those who actively choose not to take part," he said.