Choosing a super fund — what actually matters

The five things that matter (in order)

1. Net return over 10+ years

Not 1 year, not 3 years — 10 years covers a full market cycle including the 2020 pandemic crash and the 2022 bond rout. A fund with 8% over 10 years has demonstrably compounded better than one with 7%; last year’s leader often reverts.

2. Fees — measured in dollars, not percentages

Fee percentages are misleading because funds bundle admin, investment, and performance fees differently. Always convert to a dollar amount at your actual balance. On a $100,000 balance, 0.85% is $850/year; 0.55% is $550. Over 40 years at 6.7% return that gap compounds to roughly $150,000 of lost retirement savings.

The ATO’s YourSuper tool reports fees and performance at $50,000. Most balanced MySuper options charge between 0.6% and 1.1% all-in.

3. Asset allocation vs your age

A “balanced” option isn’t the same across funds. Some hold 75% growth assets, others 55%. Cbus Growth is 75/25; a typical conservative fund is 40/60. For long-dated money (30+ years), higher growth allocation wins historically. For money you need within a decade, lower-growth matters for sequence-of-returns risk.

4. Insurance inside the fund

Default life, TPD and income protection premiums vary wildly across funds. Industry funds grouping similar workers often have the sharpest rates — a fund aimed at tradies will have good IP cover, a white-collar fund usually has higher-sum death cover. See our insurance in super guide.

5. Investment options

MySuper default is fine for many. If you want to choose your own allocation (all-growth, index-only, Aussie-heavy, ethical, etc.), check the fund actually offers competitive Choice options. UniSuper, Hostplus and Vanguard Super have strong Choice menus.

What to ignore

• This year’s 1-year return. Almost random noise. Top performers swap around every cycle.
• Heavy advertising. Funds spend members’ money on their logo on a stadium. It shows you who wants new members, not who’s competent.
• “Industry” vs “retail” labels. Used to be a meaningful signal; now both have strong and weak performers.
• Star ratings from commercial comparison sites — many are paid placements.

The APRA heatmap

APRA publishes an annual heatmap comparing every MySuper product on long-term return relative to an APRA-set benchmark, and on fees. Red = underperforming. Check your fund appears green. Funds that fail APRA’s performance test two years running are banned from accepting new members.

Workflow to pick a fund

1. Narrow to 3–5 funds with 10-year net returns above 7%
2. Check each on the APRA heatmap
3. Convert fees to dollar amounts at your balance
4. Compare insurance defaults and costs against your actual needs
5. Check the Choice option list if you want to self-direct
6. Read the PDS (or at least the fee section and insurance section)
7. Consolidate — don’t leave old accounts active paying fees