Unclaimed assets: You may be eligible for a payout

South Africa’s financial institutions hold an estimated R89 billion in unclaimed assets, in the form of cash – and you could unknowingly be one of the rightful claimants.

This article explains how you can check whether you are the owner of an unclaimed asset, and the action you can take to secure your payout.

Tip: Secure your financial future. Log in now to explore solutions.

What are unclaimed assets?

Unclaimed assets are financial payouts not collected by the rightful recipient within a specified time frame.

These include:

• Retirement and pension-related benefits: Unclaimed pension and provident funds, retirement annuities, preservation funds, and unpaid death or disability benefits.
• Insurance payouts: Life insurance claims, funeral policies, endowment policies, and income protection benefits.
• Investment and bank accounts: Dormant bank accounts, unit trust investments, estate funds, bonds, unclaimed shares and dividends. For example, you may unknowingly hold shares through a BEE scheme at a former workplace.  
• Employee and government benefits: Workplace compensation, Unemployment Insurance Fund (UIF) benefits, state social grants, and education funds.

Why are assets unclaimed?

Many people don’t know they are entitled to these assets or payouts, or forget to claim them. The beneficiary’s contact details may be out of date, or the beneficiary may have passed on before telling their family about the money.

Employers may not provide complete member information, and funds may not adequately inform members leaving their jobs about claiming benefits.

Other obstacles may include poor administration and record-keeping, as well as challenges for foreigners who want to claim benefits after leaving the country. Beneficiaries may not have the correct documents to prove their identity or their relationship to the original beneficiary.

Missed opportunities

Failing to claim your assets means you miss out on money that could provide immediate financial relief, help pay off debt, contribute to savings goals, or make your retirement more secure.

In addition, 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.

Check your eligibility

There are several ways to check if you are entitled to unclaimed assets.

• 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 (FCSA). The Registrar of Pension Funds has a central database on the FSCA website, with an unclaimed benefits search tool. Enter your ID number and personal details to check if you, or another person on whose behalf you are enquiring, 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 https://www.fsca.co.za.
• Johannesburg Stock Exchange (JSE). South African companies hold about R4.5 billion in unclaimed dividends, according to the JSE. Search the JSE’s Claim It site to identify unclaimed dividends or funds. Note, however, that this search includes only participating companies, such as Old Mutual, Sasol, and Growthpoint Properties.
• 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 https://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 (ASISA). Financial institutions that are ASISA members paid R22.7 billion of formerly unclaimed assets to policyholders, beneficiaries, investors, and heirs in 2021. See https://www.asisa.org.za/.

Gather documentation

Check which documents you will need to make a claim with the fund administrator or FSCA. In addition to the completed claim form, ID book, contact details, proof of address, and banking details, you may need a copy of a payslip or other proof of employment, and proof of contributions, to verify past employment linked to the fund.

When claiming as a spouse, you will need a certified copy of the deceased member’s death certificate, and marriage certificate. When claiming as an estate executor, you will require a copy of the will and a letter of authority from the Master of the High Court. Dependents’ birth certificates will be needed when claiming on behalf of minor children.

Being organised, gathering the necessary documentation, and keeping records of correspondence are key to claiming what’s rightfully yours. It’s also worth getting advice from a financial adviser or planner on how best to allocate or invest the money.

Log in to JustMoney now to request a call with a coach and discover personalised solutions to boost your financial health.