Over R89bn in unclaimed assets savings is owed to approximately 4.4-million South Africans, many of whom are unaware that they can claim these funds.
Unclaimed retirement savings account for R48bn of this.
Unclaimed benefits are financial assets or payouts not collected by the rightful recipient within a specified time frame.
These include retirement and pension-related benefits, insurance payouts such as life insurance claims, funeral and endowment policies, and income protection benefits.
Other unclaimed benefits include investments, bank accounts and employee and government benefits such as workplace compensation, Unemployment Insurance Fund money, state social grants and education funds.
Liberty, which administers over R1.6bn in unclaimed benefits owed to more than 100,000 beneficiaries, hosted an open day last week to discuss and educate the public about ways to claim for their retired loved ones, some of whom might have passed on.
Over 800 members attended the event in which R12.3m in benefits was successfully matched under Liberty’s administration.
Inaccurate records and lack of education are contributing to the accumulation of unclaimed benefits and difficulties in tracing families.
Kabelo van der Merwe, Liberty’s head of strategic programmes, said: “Many legacy retirement funds hold inaccurate or incomplete member data, such as names, ID numbers, contact details, and next-of-kin information, which are often missing or inconsistent.
Some members have moved jobs, changed addresses, or migrated (domestically or internationally) without updating their fund details.
“In some cases, beneficiaries often pass away without clear estate documentation or registered heirs and beneficiaries,” said Van der Merwe.
In some cases, beneficiaries often pass away without clear estate documentation or registered heirs and beneficiaries
— Kabelo van der Merwe, Liberty’s head of strategic programmes
“But most importantly, many potential beneficiaries don’t know they are entitled to benefits or don’t trust the process enough to engage with fund administrators or tracing agents.”
Industry players have been on various campaigns to trace beneficiaries who might not even be aware of the funds due to them.
“Over the years, we have worked tirelessly to trace beneficiaries using both traditional and advanced technology tracing models with strategic fintech partners,” said Van der Merwe. “The open day is about restoring dignity and empowering families to access what rightfully belongs to them.”
The open day, held in Braamfontein, Johannesburg, hosted different activities and a panel discussion to educate the public on the claiming process.
Some financial institutions have outsourced fintech and tracing companies to help them find beneficiaries as ordinary tracing mechanisms came up short.
“Failing to claim your benefits means you miss out on money that could provide immediate financial relief, help pay off debt, contribute to savings goals, or make retirement more secure,” said Sarah Nicholson, an operation manager at personal finance company, JustMoney.
Nicholson said leaving assets unclaimed for a lengthy period means their value could diminish due to poor investment performance.
“Financial institutions’ administrative costs for record-keeping, storage, and legal fees can also erode asset value,” said Nicholson.
How to check your eligibility:
There are several ways to check if you are entitled to unclaimed benefits:
- Your employer or HR department: Former employers may have records of retirement contributions and will direct you to the relevant fund administrator.
- The Financial Sector Conduct Authority: The registrar of pension funds has a central database on the FSCA website, with an unclaimed benefits search tool. Users enter their ID number and personal details to check if they, or another person on whose behalf they are inquiring, have benefits due. If you have a match, you receive the fund’s or administrator’s contact details. You then contact them directly and follow their claims process. See www.fsca.co.za
- Johannesburg Stock Exchange: SAcompanies hold about R4.5bn in unclaimed dividends, according to the JSE. Search the JSE’s claim site to identify unclaimed dividends or funds. www.jse.co.za/claimit
- Tracing companies and tools: Verifi is an online tool providing an overview of life insurance and investment policies. This service is available free to South Africans once a year. Check www.verifi.co.za
- Department of labour: Check for UIF benefits on the department of employment and labour website (www.labour.gov.za), or visit a labour centre near you.
- Association for Savings and Investment South Africa: Financial institutions that are Asisa members paid R22.7bn of formerly unclaimed assets to policyholders, beneficiaries, investors, and heirs in 2021. See www.asisa.org.za/
Sowetan
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