How Unclaimed Money can help with the Cost of Living Crisis

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In the context of the cost of living crisis, unclaimed money can make a significant difference in people’s lives. There’s over $23 billion in unclaimed money in Australia right now, yet few people are aware of this great asset.

In this blog post, we explore why so few people are aware of unclaimed money and how it can help alleviate financial burdens and bring about positive change.

What is Unclaimed Money?

Unclaimed money refers to funds that belong to individuals who have lost track of or forgotten about them. These funds can come from a variety of sources such as inactive bank accounts, unclaimed insurance payouts, forgotten investments, uncollected wages, unclaimed deposits, domant super accounts, unknown inheritances, etc.

Organisations that hold these funds are required by law to transfer them to relevant government holding authorities. Then, if owners of these funds do not submit refund claims within a specified time, the money can be absorbed as government revenue.

The Surprising Lack of Awareness 

Even though 1 in every 3 Australians have unclaimed money owing to them, a vast majority remain oblivious to this opportunity. There are several reasons for this lack of awareness:

  • Limited Publicity: Government agencies responsible for managing unclaimed money often face resource constraints when it comes to publicising these funds effectively. Consequently, many individuals never learn about their entitlements.
  • Lack of Information: The agencies holding unclaimed funds often struggle to locate rightful owners due to outdated contact information or changes in personal circumstances. As a result, individuals remain unaware that they have unclaimed money owing to them.
  • Misconceptions: Misunderstandings about unclaimed money may also contribute to the lack of action. Some individuals may assume that unclaimed funds are insignificant amounts or are wary about the subject.

The Positive Difference

Discovering and recovering unclaimed money can have a positive impact on individuals and families, particularly in an era of increasing living costs. Here’s how it can make a positive difference:

  • Financial Relief: Unclaimed money can provide much-needed financial relief by helping individuals pay off debts, cover unexpected expenses, or contribute towards long-term financial goals. It can serve as a safety net during challenging times, reducing stress and improving overall well-being.
  • Economic Stimulus: The retrieval of unclaimed money injects capital back into the economy. When individuals claim their funds, they may choose to spend or invest, creating a positive ripple effect that supports local businesses and boosts economic growth.
  • Financial Empowerment: The process of recovering unclaimed money can empower individuals to be more proactive in managing their finances.  It could help foster a more responsible and informed approach to personal finance.

Taking Action

To make the most of this hidden opportunity and potentially improve your financial situation, there are steps you can take:

  1. Check Your Financial History: You may have inactive bank accounts, cheques that haven’t been cashed, deposits that haven’t been recovered, life insurance policies that have matured, dormant super accounts, unclaimed dividends or rights shares, etc.
  2. Update Your Contact Information: Ensure that your personal information is up to date with relevant organisations. This reduces the chances of funds being transferred to holding authorities due to an inability to locate you.
  3. Seek Professional Assistance: Consider consulting professionals who specialise in recovering unclaimed money. They can guide you through the process and increase your chances of a successful refund claim.

Conclusion

It is truly surprising that so few people are aware of the existence and potential benefits of unclaimed money. Unclaimed funds can provide much-needed financial relief, stimulate the economy, and promote financial empowerment. By taking proactive steps to claim these funds, individuals can make a positive difference in their lives and the broader community.

It’s quite possible that you may be among the 1 in 3 Australians who have unclaimed money owing to them. Don’t overlook it or let it get absorbed as government revenue – take action and claim what is rightfully yours. Click here for more information.