Set and Forget? The Super Strategy That’s Costing Aussies Thousands with Steven Cove

Most Australians don’t think about their superannuation until retirement is on the horizon. Unfortunately, that delay often comes with a hefty price tag, and it’s not uncommon for tens of thousands of dollars to be left on the table. In fact, nearly half of Aussies have no idea how their super is even performing, leaving their financial future to chance.

In the very first episode of our long-awaited Pacific Wealth Podcast, host Matt Ganney sits down with our very own Director and Head of Financial Planning, Steven Cove, to uncover the hidden gaps that quietly drain retirement savings and the simple steps you can take today to protect your future.

Here’s what they discussed, and why you need to start paying attention to your super now.

Why Default Settings Don’t Work for Everyone

When most people enter the workforce, their employer sets up a super fund for them. It’s quick and automatic, which seems ideal at the time. But as Steven points out, that simplicity comes at a cost.

“Most Australians will absolutely lose $50,000 to $100,000 in their super fund throughout their entire life, and that’s not because of market downturns,” Steven explained. “It’s because of missed opportunities and defaults that were never reviewed or tailored to the individual.”

Default investment options are designed to serve a broad group of members. Everyone from someone in their first job to someone nearing retirement. The problem is, what’s “balanced” for one person could be completely inappropriate for another.

“When you’re younger, you need to take on more growth assets to build up your balance,” Steven said. “But most people stay in the same investment mix their whole lives. By the time they realise, they’ve missed out on years, even decades, of potential growth.”

The result is a significant gap by retirement age. Steven estimates this misalignment costs the average person close to $200,000 over the course of their working life.

Why Super Feels “Out of Sight, Out of Mind”

Part of the issue, Steven says, is psychological. Superannuation isn’t money you can use today, which makes it feel abstract and easy to ignore.

“You can’t access it until you’re around 60,” he said. “If you start a job in your early twenties, that’s forty years away. Because you can’t touch it, you tend to forget about it.”

Annual statements often arrive by post or email, filled with dense financial language. For many people, it’s easier to glance at the balance, shrug, and file it away.

“As soon as they see words like ‘growth assets’ or ‘fixed interest,’ it all becomes a bit too much,” Steven explained. “So they put it in the too-hard basket and say, ‘I’ll deal with that another day.’ Unfortunately, that day often never comes.”

This lack of engagement means small problems compound over time, turning into major missed opportunities.

Choosing the Right Fund for You

For many Australians, an industry fund is the starting point, and for many, this can remain a perfectly fine option. But Steven is quick to point out that these funds aren’t always the best fit.

“Your super shouldn’t just reflect the industry you work in,” he said. “Two people could have completely different goals and needs, even if they have the same job title. It’s about what’s right for you, not just what’s typical for your field.”

Industry funds tend to offer a limited range of investment options. For people who want more control or specialised strategies, there are other pathways, including retail or adviser-only funds. These provide access to a broader set of investment choices and more personalised features.

Then there are self-managed super funds (SMSFs). These are especially popular among Australians who want to invest directly in property. While they offer maximum flexibility, they also come with extra responsibilities, including ongoing compliance and auditing requirements.

“An SMSF can be a fantastic option for someone who wants to be very hands-on,” Steven said. “But you need to weigh the costs, the time involved, and whether you’re ready to take on the role of trustee. It’s not for everyone.”

The Consolidation Trap (and How to Avoid It)

Rolling multiple funds into one can be smart. It can mean fewer fees and less admin, but timing matters. People often consolidate into a low-fee default option and accidentally cancel the only insurance that would meaningfully protect their family.

As Steven said, “We always replace or right-size cover before closing old policies. Saving a few basis points in fees is irrelevant if you’ve just dropped the safety net you still need.”

A simple order of operations helps. First, check what cover you already have in each fund, set up the right level of Life/TPD/Income Protection in the destination fund (or outside super), and only then roll the balances. Same outcome on fees, but with no unexpected holes in your safety net.

Advice vs. Accounting: Why Both Matter

Many people assume their accountant will take care of everything when it comes to their super. Steven explains that while accountants are essential, their focus is fundamentally different from that of a financial adviser.

“Most accountants look backwards,” Steven said. “They lodge your tax return and make sure everything’s in order for the year that’s just passed. A financial adviser looks forward. We focus on strategies that will grow your wealth and optimise your future.”

This might include recommending contribution strategies, adjusting investments as your goals change, or identifying opportunities for tax savings. Ideally, the two roles work hand-in-hand to give you a complete picture of your financial health.

“When you combine both,” Steven explained, “you’ve got someone making sure everything is compliant today, and someone else ensuring you’re on track for tomorrow.”

Why It Pays to Check Your Super Insurance

One of our colleagues, a research analyst at Pacific Wealth Partners, shared a story about one of his friends. A plumber in his late 30s, was suddenly told he could never work again after complications from a serious illness. He didn’t even realise his super included Total and Permanent Disability (TPD) cover until we suggested he check.He did, and found $156,000 of default cover. A lifesaver, yes. But for someone permanently out of the workforce (even with a paid-off mortgage), that lump sum doesn’t stretch far over decades.

“It’s a sad story, but not uncommon,” Steven said. “Default cover is standardised. Real life isn’t. The right level depends on your age, debts, dependants, income, and how long you need that money to last.”

The takeaway? Don’t assume the insurance inside your super is “set and forget.” If you’ve had kids, taken on a mortgage, changed jobs, or you’re nearing retirement, your cover needs revising. A 20-something with no dependents shouldn’t have the same cover as a 40-something with a family, and neither should mirror someone in their 60s. Small adjustments now can prevent big shortfalls later.

Two Simple Checks You Can Do This Month

Getting on top of your super doesn’t have to be overwhelming. In fact, as Steven revealed it starts with just two simple actions.

“First, find out exactly what you’ve got,” he said. “Log into your super account or check your latest statement. Look at how your money is invested and what insurance you hold.”

The second step is to explore your options.

“Once you know where you stand, take the time to see what else is out there,” Steven advised. “You might discover there’s a better investment mix, or a different fund that aligns more closely with your goals.”

He stresses that these changes don’t need to be dramatic. Even small tweaks, made consistently over time, can lead to a dramatically different outcome by the time you retire.

Client Snapshot: Small Tweaks, Big Difference

After a routine review, one of our clients shifted from a generic “balanced” option to a growth-aligned mix that actually matched their time horizon, and set up a modest salary sacrifice.

“Pick up one or two percent a year from a better-fit asset mix, add $50 a fortnight, and let time do the heavy lifting,” said Steven. “Over 20–30 years, that’s a meaningful difference, without changing your lifestyle.”

Your Future, Your Responsibility

It’s easy to treat superannuation as “set and forget,” but that mindset comes with a cost. By taking small, informed steps now, you can avoid costly mistakes and take control of your financial future. As Steven puts it: “You don’t have to make massive changes. It’s about understanding what you have, making small tweaks, and letting time do the rest.”Is your super working as hard as it could be? Or could there be hidden gaps costing you thousands? Find out by listening to the full conversation here.

Ready to take control of your financial future? Our team of experienced advisers can help you make smarter money moves today,  so you can live the life you’ve imagined tomorrow.

Get in touch today.