3 common super mistakes not to make this year
Super is key to living comfortably in the future. Yet many of us fall into some common, and easy to prevent, super traps.
To help you stay on top of your super this year, here are the top three super mistakes you should aim to avoid.
Losing track of your super
Did you know that there’s over $16 billion1 in lost super? If you’ve ever changed your name, switched jobs or done casual work, you might have lost track of some of your super without even realising it.
But that doesn’t mean it’s lost forever because it’s quick and easy to find your missing super using the ATO’s SuperSeeker service.
And if you’re an Essential Super customer you can use our Super Sorter tool available in NetBank to find lost super and bring together any other accounts in a few simple steps, without having to complete any paperwork.
Having too many super accounts
If you have more than one super account, you could be chipping away at your super savings by paying multiple fees and insurance premiums. That’s why it pays to always keep your super in one account. The added benefit is that you’ll cut down on your paperwork and keeping track of your super will be that much easier.
If you do change jobs this year, make it a habit to take your super along with you, by providing your current super details to your new employer. All they generally need is a Super Choice form with your fund details. Just remember, before making a decision, you should compare the costs, risks and benefits of your other funds. It’s also a good idea to consider things like fees, loss of insurance cover and any costs for withdrawing from your other super funds as well as any investment or tax implications.
Letting your employer choose your super fund
When you start working for a new employer, it’s likely you’ll get the option to choose your own fund. If you don’t choose, your super will get paid into a fund your employer chooses (their default fund).
Around 80% of Australian super fund members2 are in their employer’s default fund. However, if you would like more control over how your money is invested or already have your preferred super fund, you might not go with your employer’s option.
You can learn more about Essential Super.
2 Stronger Super, Australian Government Treasury, 2013.
This article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the Trustee of Commonwealth Essential Super ABN 56 601 925 435 (Fund) and the issuer of interests in Essential Super which is a product of the Fund. A Product Disclosure Statement (PDS) for Essential Super is available from commbank.com.au/super or by calling 13 4074. You should read the PDS and assess whether the information is appropriate for you before making an investment decision. Colonial First State is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (‘the Bank’). The Bank provides certain distribution and administrative services to the Trustee. The Bank and its subsidiaries do not guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with, or other liability of the Bank or its subsidiaries. An investment in Essential Super is subject to risk, loss of income and capital invested.