Super is pretty easy to ignore. For most of us, it sits in the background while we’re busy changing jobs, paying bills, raising kids or saving for other goals. Before you know it, years have passed without checking whether it’s still doing what you expect.
The good news is that most super mistakes are easy to fix. A quick review once or twice a year can help you avoid unnecessary fees, make sure your employer is paying the right amount and give you a better idea of how your retirement savings are invested.
Here are eight common mistakes to look out for (and how to fix them).
1. Ending up with multiple super accounts
It’s easy to collect more than one super account over your working life. Every time you start a new job, there’s a chance you’ll be offered a new default fund. If you don’t nominate your existing account, you could end up paying multiple sets of administration fees and insurance premiums.
The fix: Log into myGov and use the ATO’s online services to see every super account under your name. Before consolidating your super, compare the fees, insurance, investment options and other features attached to each account so you don’t accidentally lose benefits you still want.
2. Not checking your employer’s super contributions
Most employers pay super correctly, but mistakes happen. If you never look at your account, missing or incorrect contributions can go unnoticed for months.
(This is also a timely reminder that your employer now has to pay your super at the same time as your regular pay – you can learn more about recent super changes here!)
The fix: Compare your payslip with your super fund’s transaction history every now and then. If something doesn’t look right, speak to your payroll team first. If the issue isn’t resolved, the ATO can help.
3. Paying more in fees than you realise
Super fees usually come out of your balance automatically, so they’re easy to overlook. But even small differences in fees can make a noticeable difference over the long term because less of your money stays invested.
That doesn’t automatically mean you should choose the cheapest fund. Sometimes, higher fees pay for insurance or investment options that suit your needs.
The fix: Check your annual statement or Product Disclosure Statement (PDS) to see how much you’re paying each year. Then compare those costs with your fund’s long-term performance and the features you actually use.
4. Treating your super as “set and forget”
One of the benefits of super is that you don’t have to think about it every week. Contributions happen automatically and your investments continue in the background.
But that doesn’t mean you should never check in. Your balance changes over time, and so can your fees, insurance and investment options. The investment option that suited you when you started working may not be the best fit years later.
The fix: Spend 10 minutes once a year reviewing your super. Check your balance, investment option, fees, insurance and beneficiary nomination. While you’re there, ask yourself one simple question: Do I understand how my super is invested, and does it still suit my goals?
If you’re struggling to answer that very question, check out our comprehensive guide to superannuation investment options.
5. Missing opportunities to grow your super
For many Aussies, the only money going into super is their employer’s compulsory contributions. That may be enough for now, but depending on your circumstances, you might be able to boost your balance in a tax-effective way.
Options like salary sacrifice, personal deductible contributions, spouse contributions and government co-contributions may be worth exploring. The right approach depends on your income, goals and stage of life.
The fix: If your budget has changed, check whether making extra contributions could work for you. Just remember that super is only one part of your financial plan. Building an emergency fund or paying off high-interest debt may come first.
6. Forgetting about the insurance inside your super
Many super accounts include life insurance and total and permanent disability (TPD) cover. Some also include income protection.
Because premiums are deducted automatically, it’s easy to forget the cover is there until you need it. It’s also easy to accidentally cancel insurance when closing or consolidating an account.
The fix: Review your insurance cover every few years and before consolidating accounts. Make sure you understand what you’re paying for and what you’d lose if you closed an account.
Find out more in this guide to superannuation insurance.
7. Forgetting to update your beneficiary nomination
Your super doesn’t automatically form part of your estate, so your will doesn’t always determine who receives it.
If your beneficiary nomination hasn’t been updated in years, it may no longer reflect your circumstances.
The fix: Check whether you have a binding or non-binding nomination and review it after major life events to make sure it’s still current.
8. Treating super as separate from the rest of your finances
Super is one of the most tax-effective ways to save for retirement, but it isn’t your only financial priority.
Depending on your goals, it may make more sense to build an emergency fund, reduce expensive debt, invest outside super or save for a home deposit before making extra super contributions. At other times, increasing your super contributions could be the better choice.
The fix: Think about your super alongside the rest of your finances. The best strategy is the one that supports your long-term goals, rather than focusing on any one account in isolation.
A quick super check-up
If it’s been a while since you’ve logged into your account, start with these simple checks:
- Search for duplicate or lost super accounts through myGov
- Make sure your employer’s latest contributions have been paid
- Review your investment option, fees and insurance
- Check your beneficiary nomination is up to date
- Consider whether extra contributions make sense for your situation
Why all this matters
Looking after your super doesn’t mean checking it every week or constantly switching funds.
For most people, a quick review once or twice a year is enough to catch common issues before they become expensive mistakes.
Whether you’re investing inside or outside super, the same principles generally apply: invest for the long term, understand what you own, keep costs low where you can and avoid making decisions based on short-term market noise.
Your super is there to support your future. Spending a few minutes checking it’s still on track can be time well spent.
General information disclaimer
This article is general information only and doesn’t take into account your personal circumstances. Consider speaking with a licensed financial adviser about your super and estate planning, and check current rules with your fund and the ATO before acting.
