Recent rule changes to superannuation have highlighted some of the traps that can seriously sting savers.

In the past 18 months we’ve seen new super contribution caps, a life insurance overhaul and a crackdown on employers’ compulsory payments.

They might lull savers into a false sense of security, but ignoring super can risk painful penalties – such as getting taxed more than 90 per cent if you contribute too much or missing out on your money altogether. Here’s how.

TOO MUCH LIFE INSURANCE

Many Australians are underinsured but other fund members have more life insurance than they need, and miss out on the massive benefit of that foregone money compounding over many years.