Super made simple
Many super funds now offer a new, simple and cost-effective
super account called MySuper.
We explain what MySuper accounts offer you and how you can get
What is MySuper?
All MySuper accounts are accumulation funds and not defined
benefit funds. Retail, industry and corporate funds can all offer
MySuper accounts. Find out more about different types of
MySuper accounts offer:
- Lower fees (and restrictions on the type of fees you can be
- Simple features so you don't pay for services you don't
- A single diversified investment option or a lifecycle
Since 1 January 2014, if you haven't chosen a super fund, your
employer must pay your super to a super fund that offers MySuper.
If you are in an existing default fund (a fund your employer has
chosen) your super fund has until 1 July 2017 to transfer your
balance into a MySuper account.
There are two ways super funds can manage your investments
through MySuper accounts. They will either use a single diversified
investment strategy or a lifecycle approach.
Single diversified investment strategy
This is how most MySuper options work. If you do nothing your
money will be put in a standard mix of investments and the
risk-reward approach will stay the same for your whole life.
Check with your super fund to find out about their investment
approach. It is common for these funds to have a
balanced/growth approach to investing with 70% of assets in growth
(e.g. shares and property) and 30% in defensive investments (e.g.
cash and fixed interest).
Lifecycle investment strategy
Super funds that offer a lifecycle option will move your money
from growth investments when you're young to more conservative
investments when you're older.
The goal is to take on more risk when you're young because you
have time to ride the ups and downs of financial
markets. Then as you get older your super fund will
reduce your risk to secure what you've built up over your working
You don't have to make any changes yourself with a lifecycle
option - your fund changes your investment strategy automatically
MySuper lifecycle funds typically categorise you based on
your age or when you were born - which is effectively
the same thing.
This table shows you an example of a typical investment mix with
the percentage of your super savings in growth and defensive
assets, depending on your age.
Typical mix for a lifecycle investment
|Age (year you were born)
|Under 45 (or born in the 1970s or later)
|45-54 (or born in 1960s)
|55-64 (or born in 1950s)
|65 or older (or born before 1950s)
Find out more about super investment options.
Getting a MySuper
If you haven't chosen your super fund in the past and you have
just gone with the fund your employer has selected, then you don't
have to do anything. Your super will automatically be transferred
into a MySuper account by 1 July 2017.
If you are in a defined benefit fund or you have invested in
certain legacy products you will not be transferred to a MySuper
account. Ask your super fund if you are not sure where you stand or
you want more information. If you have already chosen a super
investment option within your existing fund you can choose to move
to a MySuper option if you want.
Contact your super fund to see if MySuper is right for you. See
a super fund to find out more about your options.
Picking the right super account is important no
matter what your age. How much your money grows will affect the
lifestyle you have in retirement.
Last updated: 16 Feb 2016