FAQs

Superannuation (or ‘super’) is a tax-advantaged form of savings that is designed to help individuals save and invest in order to provide income upon retirement. Employers contribute a minimum percentage of an employee’s salary into a super fund (12% as of 1 July 2025), while individuals may also make voluntary contributions up to certain thresholds. Generally, access to superannuation benefits is restricted until a person reaches their retirement age.

MySuper is the default investment product offered to people who don’t actively make an investment choice when joining a super fund. MySuper is designed to be simple and affordable, offering low fees and a balanced or age-appropriate investment strategy.

MyChoice refers to the non-default investment product offered by a super fund. MyChoice allows members to have more control over how their retirement savings are invested by offering a wider range of investment options that are tailored based on risk tolerance, access to particular asset classes such as Australian Shares or Property, as well as ethical or sustainability considerations.

A pension fund is a superannuation product designed to pay a regular income stream in retirement from the member’s accumulated savings. A member may establish an account-based pension once a condition of release has been met (such as attaining age 65), allowing for a flexible and tax-effective income to be drawn, while the balance remains invested and growing in the members chosen investment strategy.

The accumulation phase of superannuation is the period where a member is working and contributing to their super account through employer and personal contributions, with that money being invested and growing in their account over time.

The pension phase of superannuation occurs once a member achieves a condition of release and can access the money generated during the accumulation phase as either a lump sum withdrawal or a regular income stream. In this phase, investment earnings and withdrawals are tax-free, though members must withdraw a minimum amount each year.

The Superannuation Guarantee (‘SG’) is the minimum amount of super an employer must pay into their employee’s superannuation account. The SG currently sits at 12% of the ordinary time earnings of most employees.

A contribution is a payment made into a member’s superannuation account to help grow their retirement savings. Though there are several types of contributions, employer contributions (such as the superannuation guarantee and salary sacrifice) and personal contributions (such as concessional or non-concessional contributions) are the most common. Depending on the circumstances and the amount of a contribution, different tax treatments and contribution caps can apply.

A beneficiary is a person (or people) who a member elects to receive their superannuation balance and any life insurance payout if the member passes away. Superannuation doesn’t automatically form part of a will and a member will need to nominate who their beneficiaries are to their superannuation fund. A range of beneficiary types exist and different tax treatments may apply depending on who you nominate as your beneficiary.

A good superannuation fund is characterised by several key performance indicators that directly impact member outcomes over the long term.

Investment Performance: Members should evaluate their fund’s ability to generate consistent returns over 5-10 years that exceed inflation and rank competitively within their peer group. Focus on long-term wealth accumulation rather than short-term volatility.

Fees and Costs: The total cost of fund membership, including administration and investment management fees, can significantly impact net investment returns over time. Members should benchmark their fund’s fee structure against industry standards and consider the value proposition relative to services provided.  

Insurance: Many funds provide default life and total and permanent disability insurance coverage. Quality funds offer appropriate coverage levels at competitive premiums, with flexibility for members to tailor coverage according to their circumstances and needs.

Digital and Service: Quality funds provide intuitive digital platforms with efficient account management, responsive customer service channels, and streamlined processes for transactions, account consolidation, and beneficiary updates.

Help and Guidance: Leading funds provide comprehensive member education including performance reporting, financial literacy resources, retirement planning tools, and accessible advice services to support informed decision-making.

Governance: Strong funds demonstrate robust governance frameworks, experienced trustee oversight, transparency in operations, and consistent adherence to members’ best interests.

No, members are not required to use their employer’s default superannuation fund. Under Australian law, members have the right to choose which super fund receives their employer contributions.

Employers only direct contributions to their default fund when members don’t make an active choice or fail to provide valid fund details. Members can change their super fund at any time by completing a choice form with their preferred fund’s details. Employers must implement this change for future contributions, typically within the next pay cycle.

Members can easily find all their superannuation accounts through the Australian Taxation Office’s free online services.

The simplest method is to log into myGov and link to the Australian Taxation Office. The Super account information section displays all superannuation accounts connected to a member’s tax file number, including current balances and fund details. This information is regularly updated and provides a complete overview of all super holdings.

Alternatively, members can call the Australian Taxation Office on 13 10 20 and request details of their superannuation accounts over the phone, though identity verification will be required.

Members may also find clues about old accounts by checking previous payslips, employment records, or contacting former employers about past superannuation arrangements.

Members with multiple superannuation funds should evaluate their overall situation and generally consolidate accounts to optimise their retirement savings.

Multiple accounts result in duplicate fees and insurance premiums while making it difficult to maintain a coherent investment strategy. Members should comprehensively review all accounts, comparing performance, fees, insurance coverage, and services to identify the most suitable fund for their long-term retirement objectives.

Members can consolidate their superannuation through several methods, with most funds providing dedicated support to facilitate the process.

The simplest approach is to contact the preferred fund directly, as most funds offer consolidation services with online forms or phone support to guide members through transfers. Fund staff can assist with identifying accounts to be transferred and managing the entire process.

Alternatively, members can use the Australian Taxation Office’s online services through myGov, which allows electronic transfers between funds.

The consolidation process typically takes several weeks to complete once initiated. Members should ensure their employer directs future contributions to the consolidated account by updating their superannuation choice arrangements if necessary.

Super investment options are different ways members can invest their retirement savings, each with different levels of risk and potential returns.

Most funds offer several choices: Conservative options invest in defensive assets like cash and bonds for steady but lower returns. Balanced options mix growth and defensive investments for moderate risk and returns. Growth options focus on shares and property for higher potential returns but with more ups and downs.

Many funds also offer lifecycle options that automatically become more conservative as members approach retirement, plus specialist options like international shares or ethical investments.

The choice significantly affects retirement outcomes, so members should consider their risk tolerance and time until retirement.

The main difference is ownership and what happens to profits.

Industry super funds are owned by their members and run not-for-profit. Any profits go back to members through lower fees or better services. They’re typically set up for specific industries.

Retail super funds are owned by banks or insurance companies that need to make profits for their shareholders, though they still must act in members’ best interests.

Industry funds often have lower fees due to their not-for-profit structure, but quality varies widely between individual funds regardless of type.

A Self-Managed Super Fund (SMSF) gives members complete control over their investments but requires them to handle all compliance, administration, and investment decisions. SMSFs are typically only cost-effective for higher balances and are limited to six members maximum.

Industry and retail super funds provide professional management where experts make investment decisions on behalf of members. Industry funds are not-for-profit and generally offer lower fees, while retail funds are run by banks or investment companies for profit. Both handle all administration and compliance, making them suitable for members who prefer a hands-off approach.

A comparison tool is an online resource that helps members evaluate different superannuation funds based on performance, fees, and features.

The Australian government’s YourSuper comparison tool offers official comparisons of MySuper products based on fees and net returns, providing objective government-backed analysis.

RateMySuper is one of Australia’s leading independent comparison tools that provides comprehensive and personalised fund analysis. (maybe add some more details and links?)

When using a super fund’s own comparison tool, members should first check if the tool is independent and includes all major funds in comparisons, rather than favouring the host fund’s products. Good tools allow members to input their specific circumstances and provide personalised recommendations based on age, balance, contributions, and risk tolerance.

Members should focus on key metrics like long-term investment returns (5-10 years), total annual fees as dollar amounts and percentages, and insurance coverage details.

Most importantly, the tool should clearly explain how it works and where the data comes from.

Some super funds offer investment options that are designed to offer members a way of investing that aligns with their values. Typically, these are done based on a range of ethical, environmental and social matters, where certain investments may be excluded if they don’t meet the stated criteria.

Members should be engaged with their super and regularly check to see how it’s performing at least once a year. Common times to check can include when members receive their annual statement, reach milestones like starting a new job, and when they are beginning to think about retirement. It’s important for members to know where their super is and that they are getting the super they’re entitled to from their employer.

No. Super is designed to be a means of retirement savings. Early access is only permitted in very limited circumstances.

Generally, no, unless they qualify under the First Home Super Saver Scheme (FHSSS), which lets first-home buyers withdraw voluntary contributions (not employer contributions) + earnings to help with a deposit. To learn more about the FHSSS, visit the ATO website: https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme.

Generally, members can’t access their super until they meet a condition of release, such as:

1️. Reaching Preservation Age (Between 55-60). A member’s preservation age depends on when they were born, but for anyone born after 1 July 1964, that age is 60. Once members reach preservation age, they can access super by retiring permanently and gaining full access to their super, or members can access some of their super while still working via a Transition to Retirement pension.
 
2️. Reaching Age 65
Even if a member hasn’t retired or entered a Transition to Retirement pension, they can access their super at age 65.
 
3️. Early Access
Members can’t withdraw their super early just because they want to. However, they may be able to access it if they are permanently disabled (via a TPD insurance claim), are experiencing severe financial hardship (meeting strict conditions), qualify on compassionate grounds (e.g., medical treatment, funeral costs), or if they are a temporary resident leaving Australia permanently.

Super doesn’t automatically form part of a member’s will. Instead, it’s paid to their beneficiaries, based on their fund’s rules and the member’s nominations.

Possibly, but only in specific cases. Temporary residents who leave Australia permanently may be eligible to access their super through the Departing Australia Superannuation Payment (DASP). Australian citizens and permanent residents generally cannot access their super just by moving overseas.

Most super funds offer insurance for eligible members, providing financial protection in case of death, disability, or income loss due to illness or injury. The cost of this insurance is deducted from a member’s super balance, rather than paying out-of-pocket.

Types of Insurance in Super can include Death Cover (also known as Life Insurance), Total and Permanent Disability (often known by the abbreviation TPD) Cover, and Income Protection Cover.

Death Cover (also called Life Insurance) pays a lump sum to a member’s beneficiaries if they pass away. Some policies can also cover terminal illness.

Total and Permanent Disability (TPD) Cover is a lump sum paid when a member becomes totally and permanently disabled and can’t work again.

Income Protection (IP) Cover provides ongoing payments (like a salary) if a member is temporarily unable to work due to illness or injury. Payments are typically a percentage of a member’s income (e.g., 75%) and last for a set period.

The time a member must wait before their insurance starts to be paid after making a claim. This period starts when the member first becomes unable to work, and the disability has been certified by a medical practitioner.

For Income Protection: Often 30, 60, or 90 days.
For TPD claims: Can be 3 to 6 months or longer.

Longer waiting periods can often mean lower premiums.

The maximum time a member will receive insurance payments.

For Income Protection: Typically 2 years, 5 years, or until age 65.
For TPD or Death Cover: Usually paid as a lump sum rather than ongoing payments.

When a member transfers all their super to another fund, any existing insurance in the original fund may be cancelled. Some funds allow members to transfer their cover, but they must apply and be approved before consolidating to avoid losing it.

SuperRatings is Australia’s longest established superannuation research firm, specialising in delivering unparalleled research, ratings, and insights to the superannuation industry. Our mission is to provide super funds with the tools and intelligence they need to build value for their members and achieve their strategic goals, bridging the information gap between super funds and their members.

SuperRatings’ ratings methodology has been designed to reflect each fund’s value for money and covers an extensive range of areas of a superannuation fund’s offering. The data assessed covers information both in the public domain as well as aspects which are sourced directly from funds. Our ratings system covers seven main assessment components; Investments, Fees, Insurance, Help & Guidance, Digital & Service, Governance and Qualitative Overlay.

A “best value for money” superannuation fund that is well balanced across all key assessment criteria in a robust, secure and proven governance/risk framework.

A “good value for money” superannuation fund that is strong in nearly all assessment areas but with average features and/ or performance in one or more of our assessment criteria.

A “reasonable value for money” superannuation fund that is performing well in a number of assessment areas but with average or below average features and/or performance in a number of other areas of our assessment.

An Other rated fund usually has average or below average features and/or performance across a number of assessment areas. These funds frequently have many competitors that offer superior performance and structures in a more efficient environment.

SuperRatings’ awards recognise the very best within Australia’s superannuation industry. We examine each fund’s value proposition including their investment performance, fees and member servicing to determine which funds are providing the greatest benefits to their members. In addition to the coveted Fund of the Year Award, 2024 saw SuperRatings award funds across 18 categories, including awards for ‘MySuper of the Year’, ‘MyChoice Super of the year’, ‘Sustainable Fund of the Year’, Best Low-cost Offering and ‘Member Education’.