Today's top super funds
Find popular superannuation lenders from a wide range of Australian. View All >
Popular super funds
Product | Past 5-year return | Admin fee | Company | Calc fees on 50k | Features | SuperRatings awards | Go to site | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
10.81% | $65 |  HESTA - Industry Super Plan | $515 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |       | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.65% | $78 |  Hostplus Superannuation Fund - MySuper | $533 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |        | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.61% | $117 |  AustralianSuper | $417 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |     | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.48% | $96 |  UniSuper Accumulation - MySuper | $361 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |  | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.23% | $78 |  Cbus Corporate Super | $498 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |   | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.21% | $78 |  Sunsuper for Life - Super-savings Account | $533 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |    | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.18% | $57 |  Mercy Super - MySuper | $660 | Advisory services Death insurance Income protection Online access Term deposits Variety of options | | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.11% | $0 |  QSuper Lifetime | $465 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |  | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9.10% | $78 |  MTAA MySuper | $443 | Advisory services Death insurance Income protection Online access Term deposits Variety of options | | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8.92% | $0 |  Grow Wrap Super | $365 | Advisory services Death insurance Income protection Online access Term deposits Variety of options |  | More details | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Superannuation companies
Superannuation news
Popular superannuation searches
Find popular superannuation searches from a wide range of Australian. View All >
What is superannuation?
Superannuation (also known as ‘super’) is a compulsory savings scheme that forces Australian employees to put aside some of their income so they have a nest egg waiting for them when they retire.
How does superannuation work?
Your employer is responsible for paying your superannuation.
Your annual superannuation must be at least 9.5 per cent of your annual salary. For example, if you earn $100,000 (before tax), your employer must pay you at least $9,500 in super per year (a policy known as the ‘superannuation guarantee’).
Employers must make payments into your super fund at least once every three months.
What types of superannuation are available?
There are six types of superannuation funds:
- Retail super funds
- Industry super funds
- Public sector super funds
- Corporate super funds
- Eligible rollover super funds
- Self-managed super funds
| Fund | Description | Availability |
| Retail | Run by for-profit institutions such as banks and financial services companies | Everyone |
| Industry | Run by not-for-profit institutions | Some industry funds restrict membership to certain industries |
| Public sector | Created for federal and state government departments | Public servants |
| Corporate | Run by companies | Employees of those companies |
| Eligible rollover | Special holding accounts; can’t receive contributions from employers | For lost members or inactive members with low balances |
| SMSF | Self-managed super funds are for Australians who want to manage their own investments | Everyone |
Those six types of superannuation funds come in two different flavours:
- Accumulation funds
- Defined-benefits funds
Most Australians are in accumulation funds. When you retire, the fund will pay you whatever superannuation you accumulated during your working life.
Everyone else is in defined-benefit funds. When you retire, the fund will pay you based on a formula. For example, you might receive an ongoing payment calculated as a percentage of your final salary, or a lump sum calculated on the number of years you spent with your employer. Defined-benefit funds tend to be:
- Used only by corporate or public sector super funds
- Closed to new members
What type of superannuation should you get?
Few Australians now have the chance to register with a defined-benefit scheme, so you will almost certainly have no choice but to use an accumulation scheme.
As a result, there are really only two questions you need to ask when comparing super:
- Do I want to manage how my superannuation is invested or do I want professionals to manage it for me?
- If I want professionals to manage my superannuation, do I want to register with a retail fund, an industry fund, a public sector fund or a corporate fund?
Australia’s financial services regulator, ASIC, says you should think twice about getting an SMSF if you:
- Have a superannuation balance of less than $500,000
- Want a simple super solution
- Don’t want to manage your own investments
- Don’t have enough time to manage your own investments
- Don’t have enough skill to manage your own investments
- Have a low level of financial literacy
“SMSFs may be an attractive option for investors wanting more control over their superannuation investment strategy, but it requires real skill, care and diligence to manage your own superannuation,” according to ASIC commissioner Danielle Press.
“SMSFs are not for everyone simply because not everyone can meet the significant time, costs, risks and obligations associated with establishing and running one.”
If you don’t want to open a self-managed super fund, your next decision is what type of fund to choose – retail, industry, public sector or corporate.
You have a lot of choice when it comes to superannuation – there are about 190 different funds in Australia (although not all of these funds are open to everyone). So make sure you do your research and compare how different funds compare in terms of fees, investment options, investment performance, insurance options and customer service.
What can you use superannuation for?
Superannuation is meant to be used to fund retirement. So, apart from a few exceptions, you can access your superannuation only in your latter years:
- If you’re permanently retired – you can access your superannuation when you reach your ‘preservation age’ (which is between 55 and 60, depending on when you were born)
- If you’re still working – you can access your superannuation when you turn 65
However, you can access your superannuation early due to some exceptional circumstances:
- If you’ve suffered permanent or temporary incapacity
- If you’ve received commonwealth benefits for 26 continuous weeks but still can’t meet your immediately living expenses
- If you’re seriously ill and need to pay for medical treatment
- If you have a terminal condition and are likely to die within two years
Compare superannuation
How do you compare superannuation?
There are five main ways to compare superannuation funds:
- Fees
- Investment options
- Investment performance
- Insurance options
- Customer service
- All things being equal, a super fund with lower fees is better than one with higher fees. That said, it’s certainly possible that a fund with higher fees might offer better value than one with lower fees.
It’s also important to realise that super funds might charge several different fees, including:
- Administration fees
- Investment fees
- Advice fees
- Switching fees
- Buy-sell spread fees
- Activity-based fees
- Indirect costs
- Insurance premiums
You also want to research the different investment options being offered. You want to make sure you’re comfortable with:
- The amount of risk you would be taking
- The asset classes you would be investing in
- The proportion of your super that would be going to each asset class
While you’re researching each fund’s investment options, you should also research how those options have been performing. Find out what their net returns (i.e. after fees) have been. ASIC (Australia’s financial services regulator) suggests choosing a fund that has “performed well over the last five years” rather than “last year’s best performer”.
Next, if you’re interested in taking out insurance via a super fund, investigate the different insurance offers, including their premiums and conditions. Super funds commonly offer three different types of insurance:
- Life insurance
- Total and permanent disability insurance
- Income protection insurance
Finally, research what sort of customer service you might receive from different super funds. This might involve comparing the promises made by funds with the feedback left on online review sites.
Why should you compare superannuation?
Australians have access to about 190 superannuation funds and 40,000 investment options, according to APRA, so it’s important you do your research so you can find the best super fund and best investment option for you.
Choosing the wrong super fund or investment option can be costly.
Imagine you worked from age 22 to 67 and earned a salary of $75,000 the whole time. And imagine you chose the ‘balanced’ investment option (with an investment return of 4.8 per cent, tax on earning of 6.5 per cent and investment fees of 0.5 per cent). Here’s how much you would have at retirement based on different fee levels, according to the ASIC superannuation calculator:
| Fee level | Contribution fee (%) | Admin fees (p.a.) | Indirect cost ratio (% p.a.) | Final total |
| Low | 0% | $50 | 0% | $404,893 |
| Low-medium | 0% | $50 | 0.3% | $381,156 |
| Medium | 0% | $50 | 0.6% | $359,194 |
| Medium-high | 2% | $0 | 1.3% | $309,247 |
| High | 4% | $0 | 2% | $266,059 |
Now, let’s slightly change the scenario.
Again, imagine you worked for 45 years at a salary of $75,000. Also, imagine you chose a fund with ‘medium’ fees (with a contribution fee of 0 per cent, admin fees of $50 per annum and an indirect cost ratio of 0.6 per cent per annum). Here’s how much you would have at retirement based on different investment options:
| Investment option | Investment return (% p.a.) | Tax on earning (% p.a.) | Investment fees (% p.a.) | Final total |
| Cash | 2.7% | 15% | 0.05% | $247,429 |
| Conservative | 3.8% | 10.6% | 0.3% | $295,529 |
| Moderate | 4.4% | 8.3% | 0.4% | $331,780 |
| Balanced | 4.8% | 6.5% | 0.5% | $359,194 |
| Growth | 5% | 5.8% | 0.6% | $369,607 |
| High growth | 5.3% | 4.1% | 0.7% | $393,595 |
What features of superannuation should you look out for?
The five main features of superannuation are:
- Fees – does the fund have a competitive fee structure?
- Investment options – does the fund offer a suitable investment strategy and risk level?
- Investment performance – does the fund have a strong record over the past five years?
- Insurance options – does the fund have the right insurance products at a competitive price (assuming you want to take out insurance through your super)?
- Customer service – does the fund make it easy for you to manage your super?
What are the benefits of superannuation?
There are two main benefits of superannuation:
- You build a nest egg for retirement
- You save and invest in a tax-effective structure (super is taxed at only 15 per cent)
What are the disadvantages of superannuation?
The main disadvantage of superannuation is that its compulsory. So instead of getting access to your money today (in the form of a higher take-home salary), it gets locked away – potentially for decades.
How do you choose a superannuation fund?
The first thing you need to do is check that you can, indeed, choose a superannuation fund. Most Australians will be able to choose their own super fund, but some workers may not be able to do so if their job is covered by a certain industrial agreement.
It’s also possible you may not want to choose a super fund. Why? Well, some Australians in certain jobs have access to special ‘defined-benefit’ funds, which may offer more generous terms than the standard ‘accumulation’ funds used by most Australians.
However, if you are in a situation where you are choosing a super fund, your aim should be to find the best super fund in Australia.
What’s the best super fund? This will differ from person to person, because we all have our own personal preferences and financial situations. So what’s best for one won’t be best for another.
Once you’ve chosen what you believe is the best super fund for your situation, contact the institution or visit their website for more information. Joining a super fund is usually a straightforward task.
How do you find the best superannuation fund?
The best superannuation fund is the one you believe will offer you the best value.
The definition of ‘best’ will differ from person to person. Australia’s financial services regulator, ASIC, has some advice on finding the best super fund:
- Fees: “The lower the better”
- Investment options: “Make sure there are options that suit your needs and comfort with risk”
- Performance: “Pick a fund that has performed well over the last five years – do not chase last year's best performer”
What is the cheapest superannuation fund?
Identifying the cheapest superannuation fund in Australia is an impossible task for two reasons.
First, there are many different types of fees, including admin fees, investment fees, advice fees, switching fees, buy-sell spread fees, activity-based fees, indirect costs and insurance premiums. The same super fund might impose one lot of fees on one member and a different lot of fees on another member, depending on the members’ balance, activity, investment preferences and insurance preferences. The level of fees might also differ from person to person. So an apples-for-apples comparison is impossible.
Second, not only are there many different types of fees, there are also many different super funds (about 190). So at any point in time, there’s a good chance that one of these funds has just changed or is about to change one of its fees. That means that even if you could make an apples-for-apples comparison to find the cheapest super fund, the identity of the cheapest fund might change regularly.
Is the cheapest superannuation fund the best?
The cheapest superannuation fund won’t always be the best superannuation fund for your situation.
Each Australian will have their own definition on what constitutes the ‘best’ super fund. But if you believe the ‘best’ super fund is the one that will help you accumulate the most superannuation ahead of your retirement, it would be more relevant to focus on ‘net returns’ rather than fees. The net return is all the money your fund earns for you (through investing) minus all the money your fund takes from you (through fees).
It’s possible for a higher-fee fund to deliver higher net returns than a lower-fee fund if the higher-fee fund achieves stronger investment results than the lower-fee fund.
That’s why, if you believe the ‘best’ superannuation fund is the one that allows you to accumulate the most superannuation, the cheapest super fund won’t always be the best super fund.
Which superannuation fund should you choose?
You should choose whatever superannuation fund you believe is the best.
Each person will have their own definition of ‘best’, depending on their preferences. Some possible definitions might include:
- The fund that has delivered the highest net returns over the past five years
- The fund that has earned the highest approval ratings on online review sites
- The fund that has the most appealing investment options
Those are just examples – you might have your own definition of what constitutes the best super fund.
The key thing is to do your research, compare your options and then choose the super fund you believe is the best.
Who can get superannuation?
Most Australian workers can get superannuation. To get super, you need to fit one of these two profiles:
- Be at least 18 years and earn at least $450 (before tax) in a calendar month
- Be under 18 years, earn at least $450 (before tax) in a calendar month and work more than 30 hours in a week
These conditions apply even if you’re a temporary resident, a casual worker or a part-time worker.
Please note that a small number of Australians may not be able to get superannuation if they have a job that is covered by a particular industrial agreement.
How can you get superannuation?
Superannuation is an entitlement for most Australian workers.
Assuming you’re entitled to super, your employer should give you the chance to nominate your own fund when you start a new job.
If you don’t choose a fund, your employer should register you with a fund (and choose that fund’s MySuper option).
How can you apply for superannuation?
You apply for superannuation by filling out a standard choice form. You will need to provide:
- Personal details
- Information about your preferred super fund
Your employer will also need to fill out part of the form.
How much does superannuation cost?
You don’t have to pay money to join a superannuation fund. However, the fund will charge you fees to manage your money.
The range of possible fees may include:
- Administration fees
- Investment fees
- Advice fees
- Switching fees
- Buy-sell spread fees
- Activity-based fees
- Indirect costs
- Insurance premiums
How can RateCity help you save on superannuation?
You can use RateCity to compare superannuation funds and superannuation products, including:
- Investment performance
- Fees
- Features
- SuperRatings awards
You can then use that information to choose what you believe is the best superannuation fund for your situation.
A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.
FAQs
Find more frequently asked questions here View All >
Accessing your superannuation is a simple administrative procedure – you just ask your fund to pay it. You can access your superannuation in three different ways:
- Lump sum
- Account-based pension
- Part lump sum and part account-based pension
However, please note that your superannuation fund will only be able to make a payout if you meet the ‘conditions of release’. The conditions of release say you can claim your super when you reach:
- Age 65
- Your ‘preservation age’ and retire
- Your preservation age and begin a ‘transition to retirement’ while still working
The preservation age has six different categories:
| Date of birth | Preservation age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| From 1 July 1964 | 60 |
There are also seven special circumstances under which you can claim your superannuation:
- Compassionate grounds
- Severe financial hardship
- Temporary incapacity
- Permanent incapacity
- Superannuation inheritance
- Superannuation balance under $200
- Temporary resident departing Australia
You or your partner could be forced to surrender part of your superannuation if you divorce, just like with other assets.
You can file a claim for division of property – including superannuation – as soon as you divorce. However, the claim has to be filed within one year of the divorce.
Your superannuation could be affected even if you’re in a de facto relationship – that is, living together as a couple without being officially married.
In that case, the claim has to be filed within two years of the date of separation.
Either way, the first thing to consider is whether you’re a member of a standard, APRA-regulated superannuation fund or if you’re a member of a self-managed superannuation fund (SMSF), because different rules apply.
Standard superannuation funds
If your relationship breaks down, your superannuation savings might be divided by court order or by agreement.
The rules of the superannuation fund will dictate whether this transfer happens immediately, or in the future when the person who has to make the transfer is allowed to access the rest of their superannuation (i.e. at or near retirement).
Click here for more information.
SMSFs
If your relationship breaks down, you must continue to observe the trust deed of your SMSF.
So if you and your partner are both members of the same SMSF, neither party is allowed to use the fund to inflict ‘punishment’ – such as by excluding the other party from the decision-making process or refusing their request to roll their money into another superannuation fund.
This no-punishment rule applies even if the two parties are involved in legal proceedings.
Click here for more information.
Financial consequences
Superannuation funds often charge a fee for splitting accounts after a relationship breakdown.
Splitting superannuation can also impact the size of your total super balance and how your super is taxed.
Click here for more information.
A superannuation fund is an institution that is legally allowed to hold and invest your superannuation. There are more than 200 different superannuation funds in Australia. They come in five different types:
- Retail funds
- Industry funds
- Public sector funds
- Corporate funds
- Self-managed super funds
Retail funds are usually run by banks or investment companies.
Industry funds were originally designed for workers from a particular industry, but are now open to anyone.
Public sector funds were originally designed for people working for federal or state government departments. Most are still reserved for government employees.
Corporate funds are arranged by employers for their employees.
Self-managed super funds are private superannuation funds that allow people to directly invest their money.
Superannuation is paid by employers to employees. Employers are required to pay superannuation to all their staff if the staff are:
- Over 18 and earn more than $450 before tax in a calendar month
- Under 18, work more than 30 hours per week and earn more than $450 before tax in a calendar month
This applies even if the staff are casual employees, part-time employees, contractors (provided the contract is mainly for their labour) or temporary residents.
Currently, the superannuation rate is currently 9.5 per cent of an employee’s ordinary time earnings. This is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.
Employers must pay superannuation at least four times per year. The due dates are 28 January, 28 April, 28 July and 28 October.
Superannuation is designed to provide Australians with money in their retirement. The government has strict rules around when people can take that money out of their fund because it wants to prevent people eroding their savings before they reach retirement.
As a general rule, you can only take money out of your superannuation fund when you reach:
- Age 65
- Your ‘preservation age’ and retire
- Your preservation age and begin a ‘transition to retirement’ while still working
That said, you can take money out of your superannuation fund early based on one of these seven special conditions:
- Compassionate grounds
- Severe financial hardship
- Temporary incapacity
- Permanent incapacity
- Superannuation inheritance
- Superannuation balance under $200
- Temporary resident departing Australia
You can withdraw your superannuation (or at least some of it) when you reach ‘preservation age’. The preservation age is based on date of birth. Here are the six different categories:
| Date of birth | Preservation age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| From 1 July 1964 | 60 |
When you reach preservation age, you can withdraw all your superannuation if you’re retired. If you’re still working, you can begin a ‘transition to retirement’, which allows you to withdraw 10 per cent of their superannuation each financial year.
You can also withdraw all your superannuation once you reach 65 years.
You can withdraw your superannuation when you meet the ‘conditions of release’. The conditions of release say you can claim your super when you reach:
- Age 65
- Your ‘preservation age’ and retire
- Your preservation age and begin a ‘transition to retirement’ while still working
The preservation age – which is different to the pension age – is based on date of birth. Here are the six different categories:
| Date of birth | Preservation age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| From 1 July 1964 | 60 |
A transition to retirement allows you to continue working while accessing up to 10 per cent of the money in your superannuation account at the start of each financial year.
There are also seven special circumstances under which you can claim your superannuation:
- Compassionate grounds
- Severe financial hardship
- Temporary incapacity
- Permanent incapacity
- Superannuation inheritance
- Superannuation balance under $200
- Temporary resident departing Australia
Opening a superannuation account is simple. When you start a job, your employer will give you what’s called a ‘superannuation standard choice form’. Here’s what you need to complete the form:
- The name of your preferred superannuation fund
- The fund’s address
- The fund’s Australian business number (ABN)
- The fund’s superannuation product identification number (SPIN)
- The fund’s phone number
- A letter from the fund trustee confirming that the fund is a complying fund; or written evidence from the fund stating it will accept contributions from your new employer; or details about how your employer can make contributions to the fund
You might want to provide your tax file number as well – while it’s not a legal obligation, it will ensure your contributions will be taxed at the (lower) superannuation rate.
Superannuation is paid by employers to employees, at least once every three months. The ‘superannuation guarantee’ is currently 9.5 per cent – which means that your employer must pay you superannuation equivalent to 9.5 per cent of your salary. The guarantee is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.
Superannuation is generally taxed at 15 per cent. However, if you earn less than $37,000, you will be automatically reimbursed up to $500 of the tax you paid. Also, if your income plus concessional superannuation contributions exceed $250,000, you will also be charged Division 293 tax. This is an extra 15 per cent tax on your concessional contributions or the amount above $250,000 – whichever is lesser.
You can withdraw your superannuation when you meet the ‘conditions of release’. The conditions of release say you can claim your super when you reach:
- Age 65
- Your ‘preservation age’ and retire
- Your preservation age and begin a ‘transition to retirement’ while still working
When you start a job, your employer will give you what’s called a ‘superannuation standard choice form’. Here’s what you need to complete the form:
- The name of your preferred superannuation fund
- The fund’s address
- The fund’s Australian business number (ABN)
- The fund’s superannuation product identification number (SPIN)
- The fund’s phone number
- A letter from the fund trustee confirming that the fund is a complying fund; or written evidence from the fund stating it will accept contributions from your new employer; or details about how your employer can make contributions to the fund
You should also provide your tax file number – while it’s not a legal obligation, it will ensure your contributions will be taxed at the (lower) superannuation rate.