Worked Examples and Checklists
How to compare super funds: a step-by-step checklist for fees, returns and insurance
A practical order for comparing Australian super funds — fees in dollars, long-term net returns, investment options, insurance, services and employer arrangements — with a worked comparison.
To compare super funds properly, work through them in this order: (1) find out what you hold now; (2) work out yearly fees in dollars on your own balance; (3) compare long-term net returns for the same type of investment option; (4) check the performance test result; (5) compare insurance cover and premiums; (6) check employer arrangements, services and retirement products; and only then (7) decide whether to stay, switch or consolidate. Fees are the most predictable part of the comparison, but switching on fees alone, without checking insurance and employer contributions, is how people lose money or cover.
This is the overview for the Worked Examples and Checklists section. Every figure is illustrative. General information only, not financial advice — no fund is recommended here.
Step 1: know what you hold
Sign in to myGov linked to the ATO and open the super section. For each account, note:
- fund and product name, and the investment option your money is in;
- balance and the fees shown on your last annual statement;
- insurance cover (death, TPD, income protection) and premiums;
- whether your employer contributes to it, and at what rate;
- whether it is a defined benefit interest or a retirement income account.
If you find more than one account, you are probably paying duplicate fees. Consolidating may help, but read consolidating super through myGov first.
Step 2: fees in dollars on your balance
Use the PDS fees and costs summary of each product you are considering and enter the figures in the annual super fee calculator. Include the flat administration fee, the percentage administration fee, investment fees and costs, and transaction costs for the option you would actually hold.
Then put the fee difference into context with the fee drag projection. The 30-year fee drag example shows how a gap of half a percentage point can compound into a six-figure sum.
Step 3: long-term net returns, like for like
- Compare net returns (after fees and taxes) over 5 years or longer, ideally 10.
- Compare options with a similar strategy: balanced with balanced, high growth with high growth. A growth option will usually beat a conservative one in a rising market; that says nothing about the fund.
- For MySuper products, use the ATO's YourSuper comparison tool. For other options, use the fund's published returns and investment guide.
- Remember lifecycle products: the investment mix and fees may depend on your age.
See investment option fees compared for how fees differ by option type.
Step 4: the performance test
Check whether the product has passed APRA's annual performance test. A fail means the product underperformed its benchmark by more than 0.5 percentage points a year over the test period. A pass is not a recommendation, but a recent fail is a strong reason to look closely.
Step 5: insurance
Insurance can matter more than fees. Compare:
| Question | Why it matters |
|---|---|
| What default cover does each fund give someone my age? | Default death and TPD cover vary widely |
| What are the weekly premiums? | Premiums reduce your balance like fees |
| What is the TPD definition (own occupation or any occupation)? | Affects whether a claim would succeed |
| Is income protection included, and with what waiting and benefit periods? | Determines how long payments last |
| Will cover start immediately if I join, or is there a waiting period or pre-existing condition exclusion? | Key if you have a health condition |
| Can I transfer my existing cover? | Avoids a gap |
Step 6: employer arrangements, services and retirement
- Employer contributions above 12%: some employers pay more, but only into a particular fund.
- Employer-negotiated fee discounts for staff.
- Defined benefit interests, which usually cannot be replaced.
- Services: app, contribution tracking, intra-fund advice, call centre access.
- Retirement products: if you are within 10 years of retirement, check the fund's account-based pension fees and options. See account-based pension fees and preservation age and conditions of release.
Worked comparison
Illustrative member, age 38, $85,000 balance, salary $80,000 with $10,400 a year of employer contributions (13%), considering moving from Fund M to Fund N.
| Fund M | Fund N | |
|---|---|---|
| Admin fee | $1.80/week + 0.25% | $1.00/week + 0.10% |
| Investment + transaction costs (balanced) | 0.75% | 0.55% |
| Yearly fees on $85,000 | $94 + $850 = $944 | $52 + $552.50 = $605 |
| 10-year net return (balanced, illustrative) | 6.2% a year | 6.6% a year |
| Default death/TPD cover | Higher cover, $7.20/week | Lower cover, $5.10/week |
| Employer arrangement | Employer pays 13% into M only | None |
Arithmetic for Fund M's fees: $1.80 × 52 = $93.60, about $94; percentage 0.25% + 0.75% = 1.00% × $85,000 = $850. Fund N: $1.00 × 52 = $52; 0.65% × $85,000 = $552.50.
Fund N is about $339 a year cheaper on fees. But the employer pays 13% into Fund M, which on a salary of $80,000 is an extra 1% or $800 a year that would be lost by moving. The member also has higher default cover in M. On these illustrative numbers, staying in M is not obviously worse; the decision turns on whether the employer's extra 1% can follow the member, and on insurance needs. That is why fees come second, not first and last.
Step 7: decide and act
- Stay if the current product is competitive once all factors are counted.
- Switch options within the fund if the fund is fine but your option is expensive or unsuitable.
- Switch or consolidate after arranging insurance in the new fund, using the switch or consolidate checklist.
- Give your employer the new fund details on a standard choice form.
Frequently asked questions
Are comparison websites reliable?
Commercial comparison and ratings sites can be a useful starting point, but they may not cover every fund and some are paid by funds. Moneysmart suggests not choosing on one rating alone. The ATO's YourSuper tool is the official comparison for MySuper products.
How often should I compare my super?
Once a year when your annual statement arrives is a sensible routine, plus whenever you change jobs, receive a performance test letter or approach retirement.
Is an industry, retail or public sector fund cheaper?
Fees vary within each group. Compare actual products and options on your balance rather than relying on fund type.
Should I get advice?
Consider a licensed financial adviser if you have significant insurance needs, a defined benefit interest, a large balance, or are near retirement. Your fund may also offer intra-fund advice at no extra charge.
Official sources
- ATO — YourSuper comparison tool, super in myGov, standard choice form
- Moneysmart — choosing a super fund and checking comparison websites
- APRA — performance test results
- ASIC — financial adviser register and fee disclosure rules
