Do you have lost or unclaimed Super?

With recent legislative changes, if you have lost or unclaimed Superannuation the ATO can hold untouched super accounts with balances of up to $2,000. Superannuation fund providers have until May 31, 2013 to transfer untouched super accounts to the ATO. Once transferred to the ATO you will lose any insurance arrangements you have with your fund.

The process of claiming your lost super back from the ATO may be time consuming. Therefore if you have any lost Super act now before the transfer occurs.

 

You can locate your lost super by doing a search at the following web address (Note you will need your Tax File Number to do this):

 

http://www.ato.gov.au/individuals/content.aspx?doc=/content/33301.htm&alias=superseeker

If you find any lost super you can complete an application to transfer the funds into the Superannuation fund of your choice.

Term Deposit growth and low interest rates

As can be seen from the graph below the rapid growth of term deposits since the Global Financial Crisis in Australian bank term deposits has almost been threefold from just under 200 billion to around 550 billion. The irony being the term deposit rate, except for a very short period in 2008, has been very low indicating the investment has not been based on the return being offered but rather the safety of getting your money back. With these rates now below the 20 year average will this large supply of funds remain in this asset class or find another area offering a higher level of income such as shares or property. Only time will tell given the fears of America's debt and the Eurozone debt crisis however as these fears subside pressure will mount for retirees to look for more income.