Choosing the right superannuation fund is a crucial financial decision in Australia. With numerous options available, comparing super funds effectively can feel overwhelming. The Australian Taxation Office (ATO) provides a valuable resource to simplify this process: the YourSuper comparison tool. This guide will explain how to use this tool to Compare Super Funds, understand its features, and make informed choices about your superannuation.
Note: The ATO is not a financial advisor. It’s recommended to seek independent financial, legal, or taxation advice to ensure the information aligns with your specific circumstances. For professional guidance, resources like the Moneysmart website offer assistance in finding qualified financial advisors.
Accessing the YourSuper Comparison Tool: Personalised vs. Non-Personalised
The YourSuper comparison tool is available in two versions, each offering distinct advantages:
- Personalised Version: This version, accessed through your myGov account, provides a tailored experience. By logging into ATO online services via myGov, the tool can identify your existing superannuation accounts. This allows you to directly compare your current funds against other MySuper products within the tool, offering a seamless and relevant comparison. To access the personalised tool:
- Log in to ATO online services via myGov.
- Navigate to the Super drop-down menu.
- Select Information.
- Click on YourSuper comparison.
Personalised YourSuper comparison tool on myGov
- Non-Personalised Version: For users who prefer not to log in or simply want a general overview, the non-personalised version is readily accessible. This version offers the same comparison functionalities but without automatically displaying your existing super accounts. You can access the non-personalised tool by clicking the button provided on the ATO website.
Non-personalised YourSuper comparison tool
Understanding the Functionality of the YourSuper Comparison Tool
The YourSuper comparison tool is designed to present key information in a clear and comparable format, enabling users to effectively compare super funds. Here’s a breakdown of its core functions:
- Performance Ranking: The tool displays a table of MySuper products, meticulously ranked by net returns. This data is updated quarterly by the Australian Prudential Regulation Authority (APRA), ensuring the information is current and reliable.
- Detailed Comparison: Users can select up to four MySuper products to compare side-by-side in greater detail. This feature allows for a focused analysis of shortlisted funds.
- Direct Access to Fund Websites: For each MySuper product listed, the tool provides a direct link to the super fund’s official website. This allows users to delve deeper into specific fund details and offerings.
- Personalised Account Integration (Personalised Version): When accessed via myGov, the tool can display your existing super accounts alongside other MySuper products. This integration simplifies the process of comparing your current superannuation with alternatives.
- Super Consolidation Assistance: Recognizing that managing multiple super accounts can be inefficient, the tool provides links to resources that guide users on how to consolidate their super accounts, streamlining their superannuation management.
The data presented within the YourSuper comparison tool is rigorously collected and supplied by APRA. Each MySuper product’s annual performance is assessed by APRA, and the “Investment performance” column reflects one of three ratings:
- Performing: Indicates the MySuper product has met or surpassed the performance benchmark set by APRA.
- Underperforming: Signifies that the product has not achieved the APRA performance benchmark.
- Not assessed: Applied to products with less than seven years of performance history and therefore have not yet been evaluated by APRA.
Implications of Underperformance: Choosing Super Funds Wisely
A critical aspect highlighted by the YourSuper comparison tool is the concept of underperformance. If a MySuper product receives an “underperforming” rating for two consecutive years, significant restrictions are imposed. These products are prohibited from accepting new members until their performance improves to a “performing” level.
This underperformance status has several implications for individuals and employers:
- Restricted Membership for Individuals: Individuals cannot join MySuper products deemed underperforming for two consecutive years. While these products may still appear in the YourSuper comparison tool, new memberships are not permitted. This includes transferring superannuation into these products if you are not already a member. However, existing members can still choose these funds when selecting a super fund with their employer.
- Employer Obligations: Employers using underperforming MySuper products as their default fund must select a different default fund for new employees who are not already members of the underperforming fund.
- Fund Restrictions: Funds with MySuper products underperforming for two consecutive years are legally restricted from accepting new members for that specific product.
Maximizing the YourSuper Comparison Tool: Tips for Effective Use
To get the most out of the YourSuper comparison tool when comparing super funds, consider these helpful tips:
-
Customizing the Non-Personalised Version: The non-personalised tool defaults to a super balance of $50,000. To personalize your comparison, click the Filter button. Here, you can adjust the super balance to better reflect your situation and add your age. This customization refines the results, presenting more relevant product options and fee structures tailored to your profile.
-
Shortlisting and Comparing: Utilize the shortlist feature to select up to four super products for a detailed comparison. Once you’ve made your selections and clicked the Compare button, the tool will display a comprehensive comparison across key metrics, including:
- Investment performance ratings.
- Past 10-year, 5-year, and 3-year net returns.
- Total annual fees.
- Investment strategy descriptions.
- Restricted fund status (if applicable).
The Product details link for each fund will direct you to the fund’s website, providing access to even more granular information. Additionally, the Find MySuper product search function allows you to “pin” up to six MySuper products to the top of the results list for easy access and repeated review.
MySuper Products: A Focus on Simplicity and Value
The YourSuper comparison tool specifically focuses on MySuper products. These are designed as straightforward, basic superannuation accounts, characterized by the absence of unnecessary features and fees. The tool effectively compares MySuper products based on the most critical differentiating factors: performance and fees.
It’s important to note that super funds often offer a range of product types beyond MySuper, including “choice” products with more varied features. If you cannot locate your current account within the MySuper products list, it may be a different type of superannuation product. Contact your super fund directly to confirm if your account is a MySuper product. Similarly, if your current super fund is not listed in the tool at all, it may be because they do not offer any MySuper products.
Making an Informed Super Choice: Beyond Comparison Tools
While the YourSuper comparison tool is an invaluable resource for comparing super funds, it’s just one step in making a well-considered superannuation choice. Most Australians have the right to choose where their employer contributions are paid. Choosing your own super fund offers significant advantages:
- Personalized Fund Selection: You can select a fund that aligns with your individual financial goals, risk tolerance, and values.
- Avoiding Multiple Accounts: Choosing your existing fund prevents the unintentional creation of additional super accounts when starting new employment, helping to minimize fees and simplify management.
When making your super choice, consider factors beyond just performance and fees, including:
- Insurance offerings: Assess the types and levels of insurance coverage provided by different funds.
- Investment options: Explore the range of investment options available if you desire more control over your superannuation investments.
- Services and support: Consider the accessibility of customer service, online tools, and financial advice offered by the fund.
For further guidance on choosing a super fund, the Moneysmart website offers extensive resources.
After using the YourSuper comparison tool, you may want to take the following actions:
- Contact a Super Fund: Reach out to a fund to open an account, inquire about insurance options, or discuss specific features that interest you.
- Consolidate Super Accounts: If you have multiple super accounts, consider consolidating them into a single, high-performing fund.
- Notify Your Employer: Inform your employer of your chosen super fund using the Superannuation standard choice form.
By leveraging the YourSuper comparison tool and considering your individual needs and preferences, you can confidently navigate the landscape of super funds and make informed decisions that contribute to a secure financial future.
