Every time you change jobs in Australia, your employer typically opens a new superannuation account unless you nominate an existing fund. The result: millions of Australians unknowingly maintain multiple accounts, each silently deducting fees on money that is doing nothing extra to earn them.
APRA data consistently shows the average Australian with multiple funds loses $700–$1,500 per year in avoidable fees. At an assumed 7% annual return, $1,000 saved per year compounded over 30 years becomes over $94,000 in additional retirement savings — purely from eliminating duplicate administration costs.
The fee drag effect is asymmetric: a 1% annual fee on a $100,000 balance costs $1,000 this year, but because that $1,000 cannot itself compound at 7%, it represents over $7,600 in foregone wealth over the next 30 years. This is the mechanic the calculator models — the future value of fees not paid.
The ATO estimates around $17.5 billion in lost and unclaimed super sits in the system. While not all of that belongs to people with duplicates, a significant share does — accounts opened during brief jobs then forgotten when the member moved on.