A major lender has said mortgage brokers could be critical in assisting clients to reconnect with $17.4billion worth of lost superannuation. Westpac have released its Westpac Lost Super Report, which found that 61.8% of Australians under 40 have lost super, and that the majority of those affected were not actively looking for it.
The problem is being accentuated by a rise in job mobility – particularly among those under 40 – with 42% of respondents to the survey saying they have had four or more employers over 10 years.
Westpac head of mortgage broker distribution Tony MacRae said mortgage brokers could play a role in assisting their clients to reunite with their super. “When you look at the $17.4 billion in lost super, that is a lot of money, and when you think that brokers now have about 45% of the lending market, a big chunk of that $17.4bn would be from broker customers.”
MacRae said the bank was focused on raising awareness of the issue among brokers, their customers and their staff, and extended the invitation for all these parties to visit a Westpac branch to track it down or talk to their Broker. Brokers could highlight and promote the issue when they are interviewing clients, he said. “In the customer interview, as they are going through gathering information for a home loan, it’s a good question to ask where their super is, and have they changed jobs regularly in the last five to ten years.”
Just over 40% of those aged between 40 and 59 years were found to have lost super, reducing to 21% when an individual was aged over 60. Australia has $17.4billion worth of lost super in total.