Compare personal super funds

Superannuation is the money set aside for your retirement, so that when you reach the age where you stop working for a living, you can be less reliant on an age pension. In Australia, employers are required to pay part of each employee’s pre-tax salary into their personal superannuation fund, to help maintain a high enough super balance to enjoy a comfortable retirement.

Super funds often invest your retirement savings in a variety of assets to help further grow your total super balance. When choosing your personal super fund, you can compare different investment profiles, such as a Balanced profile, a Growth profile that invests more in higher-risk assets, or a Conservative profile that invests more in assets that should maintain their current value. Different personal super funds with different investment profiles could offer different returns, which may better suit the preferences and financial needs of different Australians.

Keep in mind that there’s more to a personal super fund than just its returns. Many super funds charge fees that could affect the growth of your super balance, which you may want to compare before making a selection. Also, many super funds offer additional features and benefits, such as access to insurances or other financial products. This could mean some super funds offer greater value in your financial situation.

As of 1 July 2021, the super guarantee rate (SG rate) is 10 per cent. This means that your employer is required to pay 10 per cent of your pre-tax income directly into your super fund.

The SG rate is forecast to increase over the next few years until it eventually reaches 12 per cent in 2025. This is to help ensure that every Australian’s super balance continues to grow at a healthy rate until it’s enough for a comfortable retirement.

It’s also possible to make personal contributions to your super fund, either out of your pre-tax or post-tax income. Also, self-employed Australians aren't required to pay themselves super at the SG rate, though this could affect your final retirement balance. 

While your employer will automatically pay a percentage of your income into your super account to help grow your retirement balance, you can also choose to make voluntary contributions to your super fund.

You can choose to contribute a lump sum from your bank account into your super fund at any time it’s convenient. These are sometimes called non-concessional contributions if they're made out of your after-tax income (e.g. your take-home pay). 

You can also choose to have your employer pay more than the minimum 10 per cent of your pre-tax income into your super fund. This is sometimes called making a salary sacrifice or making concessional contributions.

Making extra contributions to your super fund can help to grow your super balance more quickly, for improved security in retirement. Also, you may be able to access some of these extra contributions before you retire under specific circumstances, such as using the First Home Super Saver (FHSS) scheme to pay part of the deposit on your first home loan out of your personal super contributions.

Additionally, if you are a low income or middle income earner and fulfil certain eligibility requirements, you may receive government co-contributions when you make personal contributions to your super fund.

Personal super contributions can sometimes be declared as deductions on your personal tax return, such as when you’re making a contribution out of your post-tax income.

Salary sacrificing your pre-tax contributions can’t be declared as a tax deduction, though these contributions are typically taxed at a lower rate than your marginal tax rate. Additionally,  salary sacrifice contributions effectively lower your taxable income each financial year for tax purposes, which can also affect your income tax return.

There are limits to the maximum amount you can contribute to your super as deductible contributions before the end of the financial year before it will start being taxed differently. Exceeding the maximum concessional contributions caps could mean paying extra tax.

Tax laws, rules and regulations can change regularly, so it’s important to consider checking the ATO website and/or contacting a tax accountant for financial advice before making changes to your superannuation contributions as part of a tax strategy.

RateCity makes it simple to compare a wide variety of different personal superannuation funds side by side before making a decision. Using our tables, you can compare super funds by their recent performance, though this does not guarantee future performance. You can also compare the fees they charge to the features and benefits they offer, to better determine which super funds may offer the most value to you in your financial situation.

If you’re not certain which super fund may be best for you and your household, be sure to read the relevant product disclosure statements (PDS) and consider contacting a financial adviser for independent financial advice.