Recent estimates from the Financial Sector Conduct Authority (FSCA) show that a large amount of money remains unclaimed in South Africa, with figures reported at around R88.56 billion in 2022 and about R90 billion in more recent estimates. Retirement funds make up the largest share of these assets, followed by collective investments and life insurance.

More than 4.3 million South Africans are linked to unclaimed retirement benefits worth more than R51 billion, and although claims are being made, the total continues to grow due to low awareness and ongoing administrative challenges such as outdated contact details and poor record-keeping.

What are unclaimed funds?  

Unclaimed funds are money that a beneficiary is entitled to but has not claimed or collected. The money can be held in several different financial products like bank accounts, uncashed cheques, stocks, insurance policies, and more. Funds are considered unclaimed if the beneficiary does not receive them within 24 months of becoming eligible to do so.

Common ways in which funds go unclaimed in South Africa   

• Retirement plans
  Money that has not been paid to individuals who were members of retirement plans, or cases where the member has died and the retirement fund has been unable to trace beneficiaries.
  
  
• Bank deposits
  Money held in savings or current accounts can become difficult to trace if an account has not been used for a long time, contact details have changed, or the accountholder has passed away and their beneficiaries are not identified.
  
  
• Unclaimed insurance payouts
  Money owed to insurance policyholders or beneficiaries that has not been claimed. This can happen with various types of policies, including life, health, or vehicle insurance.
  
  
• Investments
  Money held in collective investments in assets like stocks or bonds that has not been unclaimed. This may be because the investor has misplaced your documents, failed to update your contact details, or forgotten that you made these investments. Your portion of these investments then becomes unclaimed funds.
  
  
• Unclaimed securities
  Money held in company shares or invested in bonds that you forgot to collect or claim. This may be because you have not collected dividends, cashed in your earnings, or updated your contact information.
  
  
• Other sources
  Various other assets can become unclaimed property, like uncashed cheques, dormant bank accounts, or the contents of forgotten safe deposit boxes. These assets may be held by different organisations, including government bodies, employers, or retailers.
  

Most common reasons for unclaimed assets

FSCA has identified several common reasons for money becoming unclaimed:

• Lack of information updates
  Keep your contact details and beneficiary information up to date with financial institutions where relevant. It is also helpful to let trusted beneficiaries know that benefits may exist and where important financial records are kept.
  
  
• Poor record-keeping
  Some financial institutions and their intermediaries don’t always keep proper records, making it difficult to get this money processed.
  
  
• Employer oversight
  Employers sometimes don’t provide complete information about their employees to retirement funds. 
  
  
• Changes in intermediaries
  When intermediaries and administrators change, it can sometimes lead to confusion and make it harder to keep track of unclaimed assets.

Online tools and resources to search for unclaimed money   

Finding out if you have unclaimed funds is simpler than you might think. Simply visit the FSCA website and enter basic information like your name, surname, identification number, fund name, and employer in the search tool. If there’s a potential match, they’ll provide you with the contact details of the relevant fund or administrator. You can then contact them directly and follow their usual claims process.

Step by step: How to claim your unclaimed money

1. Identify the source
   Go to the FSCA website to determine whether you have unclaimed funds, and where they are.
   
   
2. Contact the holder
   Contact the organisation that is holding your unclaimed money. You’ll need to provide proof of your identity and entitlement. This might include details like your name, surname, identification number, fund name, employer name, policy number, account number or certificate number. They may also ask you to complete forms or submit documents to confirm your claim.
   
   
3. Follow the claims process
   Each entity will have its own process for handling claims. Depending on the type and amount of your unclaimed funds, there might be a waiting period before your claim is processed and approved. You may also be required to pay certain fees or taxes on your unclaimed money. Keep track of your claim status and follow up with the entity if needed.
   
   
4. Receive your money
   Once your claim has been approved, you’ll receive your unclaimed funds. Ensure that the payment is accurate and there are no errors or discrepancies.

Tips for ensuring you claim money that’s owed to you

• Keep a well-ordered record of your financial transactions like receipts, contracts and account statements. Regularly review these records to ensure nothing slips through the cracks.
• Ensure that your contact information like your address, phone number, and email address is up to date with all financial institutions and service providers. This ensures that you receive essential notifications.
• Be proactive in claiming any benefits, refunds, or payments to which you are entitled. Don’t procrastinate when money is owed to you.
• Pay attention to notices and reminders from institutions that hold your money. Respond promptly to any requests or inquiries regarding your accounts or investments.
• If possible, opt for direct deposit for payments, salaries, and benefits. This minimises the chances of physical cheques or payments going unclaimed.
• Seek advice from a financial adviser or planner on managing your finances, investing, and estate planning. Their expertise can help you maximise your financial resources.

Don’t fall for scam ‘unclaimed funds’ notifications

These ‘notifications’ are often not professionally written and may have spelling and grammar errors. They might also come from email addresses that aren’t official. To stay safe, always check the sender’s details. However, some scammers are quite clever and can create convincing letters and well-written emails that could even deceive cautious individuals. 

Fraudsters often aim to confuse you and create a sense of urgency, pressuring you to provide your information hastily without proper thought. They may use forceful language and an abnormal rush to make you feel compelled to act quickly.

If you receive a message that looks like it might be a phishing scam or spam, be careful. Your first step should be to close the suspicious message right away. Even though spam filters usually catch these kinds of messages, sometimes a few can sneak into your inbox. In those cases, you need to be extra cautious and avoid interacting with the message or its content to safeguard your online security.

To protect yourself, don’t give out personal information without making sure the source is legitimate. Take your time to check if the request is real. If you ever feel rushed or unsure, it’s best to play it safe and contact the company allegedly sending the message through their official channels to make sure the information is genuine before sharing any of your personal details. 

For example, if the message says it’s from Nedbank, contact our client support to ask whether the message is real. Don’t use the contact details in the message. Instead, go to the official website and use the contact information listed there. Taking this extra precaution significantly reduces the risk of falling for potential scams.