The 7 biggest super mistakes – and how to avoid them

Strategies and tips to make the most of super can seem endless, but what about the things that can go wrong? You might be putting some good habits into practice, only to then sabotage yourself by making one of these common and potentially costly super mistakes.

1. Sticking with a bad super fund

Comparing funds and moving your super could be something you’ve put in the ‘too hard basket’ or simply haven’t taken the time to think about, but staying with a dud can cost you dearly.

The Productivity Commission’s 2018 report on the super industry estimated that an employee earning $50,000 who stayed in a MySuper product performing in the bottom quarter of funds would have a balance 45% ($502,000) lower at retirement than if they were in a MySuper product with performance in the top quarter of funds. That’s ten years’ wages less to spend in retirement.

Performance is only half the story. High fees can also erode your savings. Paying an additional half a percent of your balance in fees throughout your working life could reduce your final retirement balance by 12%.