Mistakes, Complaints and Official Sources
Superannuation mistakes that cost money, and the official sources to fix them
The super mistakes that most often cost Australians money — duplicate accounts, lost insurance, unpaid super, scams, missed nominations — with fixes and official contacts.
The super mistakes that cost the most are rarely about picking the "wrong" fund. They are duplicate accounts charging two sets of fees and premiums, losing insurance by rolling over or letting an account go inactive, not noticing unpaid employer super, switching after a cold call into high-cost or risky products, losing track of old accounts, and leaving no valid beneficiary nomination. Each has a free fix using official tools: myGov and the ATO for finding and combining accounts and reporting unpaid super, your fund and then the Australian Financial Complaints Authority (AFCA) for disputes, and ASIC's Moneysmart for checking offers.
This is the overview for the Mistakes, Complaints and Official Sources section. Examples are illustrative patterns, not real cases. General information only, not financial advice.
The mistakes at a glance
| Mistake | What it costs | Fix | Detailed guide |
|---|---|---|---|
| Several accounts left behind by old jobs | Extra flat fees and premiums each year | Consolidate after checking insurance | Consolidating through myGov |
| Forgotten or lost accounts | Money you do not know about | Search in myGov | Finding lost and unclaimed super |
| Not checking employer contributions | Missing super, sometimes for years | Check your fund after each payday | Unpaid super: what to do |
| Switching after a cold call or social media ad | High fees, risky investments, possible losses | Stop, check ASIC's warnings, get independent advice | Switching scams and pressure selling |
| Trying to access super early through a promoter | Tax, penalties and losses | Use only lawful release through the ATO or your fund | Early release of super |
| No or lapsed beneficiary nomination | Super may go somewhere you did not intend, or to your estate | Make or renew a nomination | Death benefits and nominations |
| Not complaining when something goes wrong | Lost money, delays | Complain to the fund, then AFCA | Complaints to your fund and AFCA |
Mistakes with fees
- Comparing headline fees only. Investment and transaction costs often come out of returns and are invisible on statements. Compare total fees in dollars on your balance; see super fund fees explained.
- Comparing different options. A high-growth option's returns cannot be compared with another fund's conservative option.
- Ignoring fees in retirement. Pension balances are often the largest you will ever hold, so a percentage fee costs most then.
- Paying for advice you no longer receive. Ongoing advice fees deducted from super must be agreed to and renewed. Check your statement for advice fees and cancel any you did not agree to.
- Switching too often. Each switch can cost buy/sell spreads and risks missing market recoveries.
Mistakes with insurance
- Rolling over before arranging new cover. Closing an account normally ends its cover. If your health has changed, you may not get it back.
- Letting an account go inactive. Cover stops after 16 months without contributions unless you tell the fund you want to keep it.
- Paying for cover twice. You may not be able to claim on both policies, especially income protection.
- Not knowing what you have. Read the insurance section of each statement every year.
Mistakes with contributions and tax
- Going over a contribution cap because two employers contribute, or a salary sacrifice arrangement continues after a pay rise. Track contributions in myGov.
- Forgetting the notice of intent before claiming a deduction for personal contributions, or rolling the money over before the fund acknowledges the notice.
- Missing a Division 293 notice for high incomes and paying late.
- Not giving your tax file number to your fund, which leads to higher tax on contributions and stops the fund accepting some contributions.
Illustrative pattern: small leaks add up
An illustrative member in their forties has three accounts from past jobs, each paying $1.30 a week in administration and about $4 a week in default insurance premiums. Two of the accounts have had no contributions for years. Unnoticed, the two old accounts cost about 2 × ($1.30 + $4.00) × 52 = $551 a year — unless their insurance has already been cancelled, in which case the member is paying fees for accounts that also no longer provide the cover they thought they had. One afternoon with myGov, the comparison checklist and a phone call to the fund they keep would stop the leak.
Where to go for help
| Need | Who to contact |
|---|---|
| Find all your super, consolidate, report unpaid super, check caps | Australian Taxation Office via myGov or the ATO website |
| Check a fund's performance test result and prudential supervision | APRA |
| Check a financial adviser's registration, scams and warnings | ASIC and its Moneysmart website |
| Complaint your fund has not resolved | AFCA, after first complaining to the fund |
| Free financial counselling if money stress is involved | National Debt Helpline (1800 007 007) |
| Free retirement income information | Services Australia's Financial Information Service |
Frequently asked questions
What is the single most common costly mistake?
Holding more than one account without knowing it, which means duplicate fees and premiums. Checking myGov once a year catches it.
My fund made an error on my account. What can I do?
Ask the fund to correct it in writing. If the fund does not resolve it, you can complain to AFCA, which is free. See complaints to your fund and AFCA.
How do I check whether an adviser is licensed?
Search ASIC's financial advisers register on Moneysmart. If someone offering super advice is not listed, do not proceed.
Is it a mistake to stay in my employer's default fund?
Not necessarily. Many default MySuper products are competitive. The mistake is never checking. Compare it once using the comparison checklist.
Official sources
- ATO — super in myGov, unpaid super reports, caps, lost super
- APRA — performance test and regulated funds
- ASIC and Moneysmart — scams, financial advisers register, choosing and consolidating super
- AFCA — free external dispute resolution
- National Debt Helpline — free financial counselling
