Choosing the right superannuation (super) provider is key to securing your financial future in retirement. But it’s hard to know where to start, or what to consider in your decision-making. The Australian Government provides several tools and resources to help you compare super funds.

Here is a step-by-step guide to help you make confident decisions using government-backed information. NOTE: this information is valid at the time of publication, but figures may vary in the future.

Understand super basics

Before diving into evaluating funds, it's important to have a clear understanding of what superannuation is and how it works in Australia.

A super fund is a retirement savings account where your employer contributes a percentage of your salary (currently 11.5% as of 2024, with a scheduled rise to 12% in July 2025) to your chosen fund.

There are different types of funds, including:

• MySuper: A default, low-cost option for those who don’t actively choose a super fund.
• Retail funds: Typically run by financial institutions with various investment options.
• Industry funds: Often non-profit and associated with specific industries, like hospitality.
• Self-managed superannuation funds (SMSFs) : For individuals who want complete control over their investments.
• Corporate and public sector funds: Funds for employees of specific companies or the public sector.

If you’re keen to deepen your understanding, visit the Australian Tax Office (ATO) Superannuation Overview .

Key factors to consider when choosing a super fund

The Australian Government’s oversight of super funds is supported by regulatory bodies such as the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) . Together, they emphasise several key factors when evaluating funds:

Fees

• Fee structures: Super funds charge different types of fees, including administration fees, investment fees, and indirect costs. Even small differences in fees can significantly impact your retirement savings over time.
• Comparison tools: Use the ATO’s YourSuper comparison tool (see next section) to compare super funds’ fees.

Investment options

• Different funds offer different investment options, including conservative, balanced, growth, and high-growth portfolios. Some super providers also let you choose the specific investments you'll hold.
• Consider whether the super fund offers options that match your risk tolerance and financial goals. The ATO website has a lot of information about how investment choices within superannuation impact your final retirement balance.

Insurance

• Most superannuation funds offer automatic life insurance cover (life, total and permanent disability, and income protection). However, they don't typically include trauma, which may be a consideration for some.
• Insurance premiums are automatically deducted from your super balance, which is convenient, but can have an impact on your total retirement returns.
• Review the default insurance coverage offered, and consider whether it meets your needs, whether the fund allows you to adjust your cover, and whether the protection is worth the fees for you.
• ASIC’s Moneysmart website has more detailed information on insurance within superannuation.

Fund sustainability and ethical investment

• If you prefer sustainable or ethical investment options, look into whether the super fund follows environmental, social, and governance (ESG) criteria for its investment decisions.
• Super funds may publish sustainability reports on their websites, and APRA’s annual superannuation statistics can help you identify funds with ethical investment practices.

Customer service and accessibility

• Evaluate the super fund’s reputation for customer service and its ability to provide helpful and timely information.
• Tools such as mobile apps, website features, and customer support hours are also worth considering.

Government tools to set up, compare and track your super

The Australian Government provides several online tools and resources that can simplify setting up your super, comparing funds and tracking your super's performance. Here are a few you can try:

MyGov superannuation portal

This portal offers Australians a centralised platform to manage their superannuation through direct integration with the ATO. It allows you to monitor your super funds, consolidate accounts, and stay up-to-date with your contributions and balance. Here are the steps for how to make the most of MyGov’s superannuation features.

Step 1: Access the MyGov portal and link the ATO service

• Create or log into MyGov: Go to MyGov and either log into your existing account or create a new one if you haven’t yet registered.
• Link to the ATO: Under “Linked services”, select “Australian Taxation Office” if it isn’t already linked. You may need to verify your identity to complete this step.

Step 2: View and track your super accounts

The MyGov superannuation portal provides an overview of all your super accounts connected to your Tax File Number (TFN), including both active and lost accounts.

• Access your super account summary: Once in the ATO section, navigate to “Super” to view all linked super accounts, including their names, member numbers, and balances.
• Check for lost or inactive super: MyGov allows you to view any lost or unclaimed super accounts. These may include accounts you’ve lost track of or that your previous employers set up on your behalf.
• Monitor regular contributions: You can track employer contributions to ensure your super is being paid correctly and on time. Contributions generally appear quarterly.

Things to consider:

• Monitoring your contributions is essential to ensure you receive your full super entitlements.
• If you spot an unclaimed account, consider consolidating it to save on duplicate fees.

Step 3: Consolidate super accounts

A key feature of the MyGov superannuation portal is you can consolidate multiple super accounts. This helps you avoid paying duplicate fees and makes it easier to manage your retirement savings.

• Select accounts to consolidate: From the “Super” section, select “Manage” and then “Transfer super.” Here, you can choose the accounts you want to consolidate into one preferred account.
• Check each fund’s details before transferring: Review each fund’s insurance coverage and fees, as some funds may offer valuable insurance you would lose by consolidating.
• Initiate the transfer: Once you select the accounts you wish to consolidate, submit the transfer request. The consolidation typically occurs within a few days, with no additional fees from the ATO.

Things to consider:

• Consider factors like fees and performance when choosing your primary super fund.
• Be mindful of insurance within super funds. As mentioned, insurance fees can eat into to your super earnings, so it's worth considering whether you want insurance inside or outside your super.

Step 4: Review your super contributions and caps

Through the portal, you can track both employer and personal contributions. This allows you to see if you’re approaching annual contribution limits and helps you avoid excess contribution taxes.

• View concessional and non-concessional contributions: The portal categorises contributions as concessional (pre-tax) or non-concessional (after-tax) and tracks your contributions for each financial year.
• Check your contributions against annual caps: If you make extra contributions , tracking is essential to avoid exceeding the concessional or non-concessional caps .
• Access carry-forward concessional contributions: Have unused concessional contributions from previous years and meet the eligibility criteria? You can view and apply these amounts to maximise your contributions for a given year.

Things to consider:

• Regularly check your contributions to avoid unexpected tax liabilities.
• Use carry-forward contributions strategically if you have extra funds to put toward super in certain years.

Step 5: Use the YourSuper comparison tool

The MyGov superannuation portal links to the YourSuper comparison tool. This makes it easier to compare your current fund’s performance, fees, and net returns against other MySuper products.

• Access the YourSuper comparison tool: Click on “Super” in the ATO section, then select “YourSuper comparison tool” to explore MySuper products.
• Compare fees and performance: The tool displays funds ranked by fees and net returns, with filters for different fund types, helping you quickly identify better-performing funds.
• Consider switching funds: If your fund consistently underperforms or has high fees, you may want to consider switching to a more competitive option. You can do this directly through MyGov, but it might help to first seek qualified financial advice.

Things to consider:

• Look for funds that deliver on the factors that are important to you, such as consistent returns, lower fees, or an ethical focus.
• Considering using this tool at least annually to ensure your fund remains competitive, particularly if you’re in a MySuper product.
• See the YourSuper comparison tool section above for a step-by-step guide on how to use it.

Step 6: Nominate or update beneficiaries

Most super funds allow you to nominate beneficiaries to receive your super in case of your death, and MyGov can help you ensure these nominations are up-to-date.

• Locate beneficiary options: Within each super fund’s information in MyGov, check for options to add or update your beneficiaries.
• Check binding vs. non-binding nominations: Binding nominations give legal authority to your choice, while non-binding ones act as guidance for the trustee.
• Update regularly : Review your beneficiary nominations annually and after major life changes, like marriage or divorce, to keep them current.

Things to consider:

• Binding nominations usually require renewal every three years, so set reminders to avoid unintentional lapses.
• Choose beneficiaries carefully to avoid any disputes or unintended allocations.

Step 7: Review your super regularly

The MyGov superannuation portal makes it easy to check in on your super accounts and contributions regularly.

• Schedule regular super check-ins: Consider reviewing your super every quarter to ensure your contributions are being made, insurance needs are met, and fees remain competitive.
• Look for alerts or messages: MyGov may provide notifications or messages about your super status, such as new contributions or changes in fund status. This includes a notification to perform a super health check if you haven’t checked your super through MyGov in a while.
• Update your details as needed: Keep your contact and employment information up-to-date, especially if you switch jobs or need to change your fund selection.

Things to consider:

• Set aside time after the end of the financial year to review your super balance, contributions, and investment performance.
• Use MyGov to ensure your super arrangements align with your retirement goals.

YourSuper comparison tool (ATO)

As noted, the YourSuper comparison tool was developed by the ATO. It’s a powerful resource for comparing MySuper products based on fees, performance, and other key metrics. Here’s the process for using this tool effectively to make informed decisions about your superannuation fund.

Step 1: Access the YourSuper comparison tool

• Visit the Tool: Go to the ATO’s YourSuper comparison tool
• Login to MyGov: For a more personalised experience, log in to MyGov and link to your ATO account. This will allow you to view your current superannuation details and compare them with other MySuper products.

Step 2: Enter your details for personalised results

• Personalised recommendations: After logging in, you’ll see the details of your current super account and can compare it with other funds in the MySuper category.
• Basic search: If you prefer not to log in, you can use the tool in guest mode to compare MySuper funds generally, though this won’t reflect your current fund’s specific details.

Step 3: Use filters to tailor your search

The YourSuper comparison tool offers several filters to help narrow down options based on your preferences and circumstances:

• Investment options: You can select between funds with different investment strategies, such as Balanced, Growth, Conservative, or High Growth. Choose an investment option that aligns with your risk tolerance, investment goals, and time until retirement.
• Sort by fees or performance: Rank funds by fees or net returns. Sorting by:
  • Fees can help identify low-cost funds, which can contribute to long-term growth, since lower fees mean more of your balance stays invested.
  • Net returns focuses on funds that have provided higher net returns after fees and taxes. But remember, past performance isn’t always a reliable indicator of future returns.

Step 4: Evaluate key data points

Once the list of MySuper products is displayed, review the following crucial data points for each fund:

• Net returns:
  • Past performance: The tool displays net returns for the past 1, 3, 5, and 7 years. While past performance isn’t a guarantee of performance in the future, it can provide a sense of how consistently a fund has performed.
  • Comparisons with benchmarks: Each fund’s net return is shown against a benchmark return, giving you a relative understanding of performance. If a fund consistently outperforms the benchmark, it could be a strong contender.
• Fees:
  • Annual fees: This section lists the approximate annual fees on a $50,000 balance. Fees can vary significantly between funds, and even small differences in fees can compound over time to make a significant difference in your balance.
  • Administration and investment fees: Ensure you’re clear on what the fees cover. Some funds may offer low administration fees but higher investment fees or vice versa.
• Fund ranking:
  • Low performance warning: The YourSuper tool flags funds that have underperformed over the last 7 years. Funds with consistently poor performance are noted with a “Low performing” label. This means they may not provide optimal growth over time.

Step 5: Dig deeper into fund options

Each fund listed on the YourSuper comparison tool links directly to the fund’s website, where you can find additional information such as:

• Investment strategy: The details of how the fund allocates assets across stocks, bonds, real estate, and other investments.
• Insurance options: Many super funds offer life, TPD, and income protection insurance. Consider if the fund’s insurance offerings align with your needs and whether the fees are worth the insurance.
• Sustainability or ethical Investment: As previously noted, many funds offer sustainable or ethical investment options. Some funds specialise in socially responsible investing, which may align with personal values.

Step 6: Compare your current fund with other options

If you’re logged in via MyGov, the tool will display how your current fund compares with other MySuper products in terms of fees and net returns. See if there are other funds with lower fees or higher returns that could better meet your needs. Here are key comparisons to consider:

• Performance vs. fees: It can be worthwhile to consider balancing the trade-off between fees and performance. Lower fees are beneficial, but it’s also important to ensure your fund is performing well against its peers.
• Risk tolerance alignment: Ensure that your fund’s investment strategy aligns with your risk tolerance and financial goals. Higher-growth funds may outperform in the long run, but come with increased volatility.

Step 7: Consider switching super funds (if beneficial)

If you find a fund with lower fees, better performance, or an investment strategy more aligned with your preferences, you may consider switching funds .

• Consolidate multiple funds : Having multiple super accounts can lead to higher fees, so it’s worth consolidating them. The MyGov portal provides a simple consolidation feature.
• Check for exit fees: While most funds no longer charge exit fees, it’s still a good idea to verify if any costs are involved in switching.

Step 8: Regularly review and reassess

The superannuation landscape changes, and a fund’s performance, fees & investing approach can vary over time. Use the YourSuper comparison tool annually or whenever there’s a major life or financial change to ensure your super fund remains the best choice for you.

Ongoing monitoring

Once you’ve chosen a super fund, it can pay to keep an eye on your account.

• Regularly review member statements: Check on your balance and compare your fund’s performance and fees against benchmarks.
• Stay updated on changes: Funds may change their fee structures or investment strategies, so it’s important to stay informed.

Additional resources

ASIC’s Moneysmart superannuation guidance

ASIC’s Moneysmart website is a comprehensive resource that offers:

1. General advice on choosing a super fund.
2. Guides on comparing fees, insurance, and investment options.
3. Tools to track down lost super.

APRA superannuation heatmaps

The APRA superannuation heatmaps – the MySuper Heatmap and the Choice Heatmap – are both designed to help Australians evaluate superannuation products. Each caters to a different segment: MySuper for default, low-cost, standardised funds; and Choice for a broader range of customisable funds with varied investment strategies.

Industry reports

For more detailed analysis of the entire superannuation market, you can access industry reports and performance data: APRA Annual Superannuation Statistics . These reports detail superannuation industry trends, and the performance of individual funds.

Take super confident steps

Evaluating superannuation providers is a critical step in securing a strong financial future. Using tools and resources such as the YourSuper comparison tool and APRA’s heatmaps can help you make well-informed decisions for your needs and preferences. Regular check-ins on your super’s performance and necessary adjustments can also help ensure your retirement savings grow steadily over time.

Hungry for more detail? Visit:

• MyGov: Portal
• ATO: Superannuation
• APRA Superannuation: Heatmap

Happy investing!