5 Common Super Mistakes

(and how to avoid them)

Your super is the key to having enough money to live comfortably in
retirement. Yet many of us are letting our retirement dreams slip away by
falling into some common, and easy to prevent, super traps. Here are the
top five super mistakes you should avoid.

1. Losing track of your super

There are over 3.4 million lost super accounts worth more than $16 billion.1 If you’ve ever
changed your name, switched jobs or done casual work, you might have lost track of some
of your super without realising it.

2. Keeping more than one super account

In 2012 there were nearly 32 million super accounts in Australia, which is an average of
almost three accounts for every worker.1

If you have different super accounts, 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. It will also cut down on your paperwork and make it easier to keep track of
your super if you change jobs.

But before you move all of your super into one fund, make sure you consider any
withdrawal fees, your investment mix and any insurance you may lose if you leave a fund.
So be sure to speak to your financial adviser before making any decisions.

3. Assuming your employer’s default fund is right for you

Every Australian employer has to offer their employees a default super fund. If you don’t
choose a separate fund to pay your super into, this is where it will all go.

Around 80% of Australian super fund members are in their employer’s default fund — and,
for many, it could be the right choice. 2

That’s especially the case now that the Government’s MySuper regulations have created a
new breed of default super funds, with lower costs and standard insurance benefits.

General Advice Warning: This article has been sourced from Colonial First State# (www.colonialfirststate.com.au). Though all
care is taken at the time of publication, the information does not constitute advice. Please use this article as general
information only, as it does not take into account your individual circumstance. Snelleman Tom makes no representation or
warranty as to the accuracy, reliability timeliness or completeness or material in this newsletter. No liability is accepted for
any loss as a result of reliance of this information.

* Snelleman Tom Consulting Accountants and Financial Planners: Snelleman Tom Pty Ltd (ABN 97 093 585 614) and
Snelleman Tom Financial Services Pty Ltd (ABN 97 064 306 010).

# Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) based on its
understanding of current regulatory requirements and laws as at 20 September 2013. While all care has been taken in the
preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no
person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any
loss suffered by any person arising from reliance on this information

1|Page www.snellemantom.com.au
But if you would like more control over how your money is invested, you might prefer a
fund that offers more investment choice.

4. Relying solely on super guarantee contributions

Your employer must contribute 9.25% of your salary to super each year under current laws.
But research shows that at this rate, the average wage earner won’t even have half the
super they need for a comfortable retirement. That’s why it’s worth considering options like
pre-tax salary sacrifices or personal contributions from your take-home pay to help grow
your super nest egg.

5. Leaving it too late to boost your super

Even if your retirement is still a long way off, it pays to start building your super sooner
rather than later. You might be surprised at how a small increase to your super now could
have a big impact in the long run.
1
Lost and Unclaimed Superannuation Money, Discussion Paper, Australian Government
Treasury, June 2013.

2
Stronger Super, Australian Government Treasury, 2013.

Need more
information?
Please speak with your
financial adviser or contact
Snelleman Tom on 07
3871 0081 to discuss your
personal circumstances.

General Advice Warning: This article has been sourced from Colonial First State# (www.colonialfirststate.com.au). Though all
care is taken at the time of publication, the information does not constitute advice. Please use this article as general
information only, as it does not take into account your individual circumstance. Snelleman Tom makes no representation or
warranty as to the accuracy, reliability timeliness or completeness or material in this newsletter. No liability is accepted for
any loss as a result of reliance of this information.

* Snelleman Tom Consulting Accountants and Financial Planners: Snelleman Tom Pty Ltd (ABN 97 093 585 614) and
Snelleman Tom Financial Services Pty Ltd (ABN 97 064 306 010).

# Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) based on its
understanding of current regulatory requirements and laws as at 20 September 2013. While all care has been taken in the
preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no
person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any
loss suffered by any person arising from reliance on this information

2|Page www.snellemantom.com.au