Most people can choose the fund that receives their super payments.

How to choose a super fund

There are different types of super funds to choose from.

To choose the best super fund for you, it helps to weigh up investment returns and fees against other things like risk, investment options, services and insurance.

Performance

Take a look at how the fund has performed over the past 5 years or more. Also think about how fees and other costs could shape returns over time.

Try to compare similar investment options. For example, look at one balanced option alongside another balanced option, and use the same timeframe so you get a fair picture.

Low fees

Every super fund charges fees. These can be a dollar amount, a percentage, or a mix of both. Lower fees usually help your balance grow faster. Funds usually take fees each month, and they may also charge you when you make changes like switching investments. 

Insurance

Super funds usually offer 3 types of insurance for members:

• life (also known as death cover)
• total and permanent disability (TPD), and
• income protection.

Some super funds might provide you with automatic or 'default' insurance when you join. When you compare the insurance they offer, look for:

• the premium rates
• the amount of cover
• any exclusions or definitions that might affect you.

You can read more in insurance through super.

Investment options

Most super funds offer a range of investment options for you to choose from.

These can include options that invest in a specific asset type only. As well as a mix of diversified investment options, such as:

• growth
• balanced
• conservative
• cash
• ethical
• MySuper, which is a simple super product that adjusts risk based on age.

Some funds also offer more choice, letting you set how much you invest in different types of assets, or pick specific options from the fund's list of direct investments. 

Services

Some funds offer extra services that may cost more. These can include things like financial advice.

Compare super funds

You can also find out about and compare super funds by using:

• the ATO's YourSuper comparison tool, an online list comparing MySuper products
• the product disclosure statement (PDS) for each product offered by a fund
• super comparison websites offered by private companies.

What to do if your super fund is underperforming

Your super fund must let you know if it underperforms under the Australian Prudential Regulation Authority's (APRA) annual performance test.

If this happens, take a moment to consider your options. You can compare the features listed above to help you decide whether to switch funds and to know which product might suit you better. If you have a MySuper product, you can also check the ATO's YourSuper comparison tool to see how it stacks up.

Comparison websites

Comparison websites can be useful, but they are businesses and may make money from promoted links. They may not show every option. They also use their own assessment criteria and score things differently, so rating can vary between sites.

Read what to keep in mind when using comparison websites.

Super comparison websites include:

• Canstar
• Chant West
• Morningstar
• SuperRatings

These sites offer some free information. Some also offer more detailed information for a fee. Don't choose a super fund based only on its rating on one of these websites.

Instead, compare these features:

Once you have the information you need, use our super calculator to compare how different funds will work for you.

If you don't choose a super fund

If you don't choose a super fund, your employer checks with the ATO to see if you already have one. This is your stapled super fund.

If you don't have a fund yet (for example, in your first job) your employer pays your super into a 'default' super product they chose.