Choosing the right superannuation fund is a crucial financial decision in Australia. Your super fund is essentially your retirement savings, and comparing your options is vital to ensure you’re maximizing your returns and minimizing fees. The Australian Taxation Office (ATO) provides a valuable resource called the YourSuper comparison tool to help you assess and compare MySuper products. This guide will walk you through how to effectively use the YourSuper comparison tool to compare your super fund and make informed choices about your financial future.
Please note: While the YourSuper comparison tool is a fantastic resource, the ATO is not a financial advisor. It’s always wise to seek independent financial, legal, or taxation advice to ensure any financial decisions align with your personal circumstances. For further guidance, the Moneysmart website offers excellent resources on getting the right financial adviceExternal Link.
Understanding the YourSuper Comparison Tool
The YourSuper comparison tool is designed to provide transparency and simplify the process of comparing MySuper products. MySuper products are a type of superannuation account designed to be simple, cost-effective, and suitable for most Australians. The tool offers two ways to access information: a personalized version and a non-personalized version.
Personalized vs. Non-Personalized Versions
The key difference lies in personalization. The personalized version, accessed through your myGov account linked to the ATO, automatically displays your existing superannuation accounts. This allows you to directly compare your current funds against other MySuper products within the tool. This is particularly helpful for seeing how your existing super fund stacks up against the broader market.
The non-personalized version is accessible without logging into myGov. It provides a general overview of MySuper products but doesn’t show your personal superannuation details. This version is useful for initial research and understanding the range of MySuper products available.
What the Tool Does: Key Features
The YourSuper comparison tool offers several functionalities to aid your super fund comparison:
- Performance Ranking: It presents a table of MySuper products ranked by net returns, updated every quarter. This allows you to quickly see which funds have performed well recently.
- Detailed Comparison: You can select up to four MySuper products to compare side-by-side in greater detail. This feature lets you delve deeper into specific aspects of each fund.
- Direct Links to Fund Websites: For each MySuper product listed, the tool provides a direct link to the super fund’s website. This makes it easy to access more comprehensive information directly from the fund provider.
- Personalized Account View (Personalized Version): If you use the personalized version, the tool displays your existing super accounts alongside other MySuper products, offering a direct comparison point.
- Consolidation Guidance: The tool provides links and information to help you consolidate your super accounts. Consolidating multiple accounts can simplify your super management and potentially reduce fees.
It’s important to understand that the data within the YourSuper comparison tool is provided by the Australian Prudential Regulation Authority (APRA). APRA is responsible for regulating superannuation funds and assesses the annual performance of MySuper products.
APRA’s performance assessment categorizes each fund as:
- Performing: The product has met or exceeded the performance test benchmark set by APRA.
- Underperforming: The product has not met the performance test benchmark.
- Not assessed: The product has been operating for less than 7 years and therefore has not yet been assessed by APRA.
Navigating the YourSuper Tool to Compare Super Funds
Let’s explore how to use both versions of the YourSuper comparison tool to effectively compare your super fund options.
Accessing the Tool: Personalized and Non-Personalized
Personalized Access via myGov:
To access the personalized version and compare your existing super fund:
- Log in to ATO online services through myGovExternal Link.
- Navigate to the Super drop-down menu.
- Select Information.
- Choose YourSuper comparison.
This will take you to the personalized YourSuper comparison tool, displaying your current super accounts and allowing you to compare them with other MySuper products.
Non-Personalized Access:
For a general comparison without personal account details, you can access the non-personalized version directly:
Non-personalised YourSuper comparison tool
Clicking this link will open the non-personalized tool in your browser.
Using Filters to Personalize Results
The non-personalized version defaults to a super balance of $50,000. To make the comparison more relevant to your situation, you can adjust this and add your age by clicking the Filter button within the tool. This personalization refines the results to show MySuper products that may be more suitable for your specific balance and age demographic, and can influence the displayed fees.
Comparing Shortlisted Funds in Detail
Once you have identified a few MySuper products that look promising, you can select up to four at a time to shortlist and compare them in greater detail. After clicking the Compare button, the tool will present a detailed comparison table showing:
- Investment performance: A key indicator of how well the fund has performed.
- Past 10 year net return: Long-term performance history.
- Past 5 year net return: Medium-term performance.
- Past 3 year net return: Shorter-term performance.
- Total annual fee: The fees charged by the fund, which impact your net returns.
- Investment strategy: The fund’s approach to investing your superannuation.
- Restricted fund status: Indicates if there are any restrictions on who can join the fund.
Clicking on Product details will take you directly to the specific super fund’s website for even more in-depth information. You can also use the Find MySuper product search feature to “pin” up to six MySuper products to the top of your results list for easier access and comparison. The search function is specifically designed to return only MySuper products.
MySuper Products: The Basics
MySuper products are designed as straightforward and cost-effective superannuation options. They generally come with fewer complex features and lower fees compared to other types of superannuation products. The YourSuper comparison tool is specifically designed to compare these MySuper products based on their key differences, such as performance and fees.
It’s important to remember that super funds often offer a range of product types, including both MySuper and more complex “choice” products. If you can’t find your current super account listed as a MySuper product in the tool, it might be a different type of account. To confirm if your account is a MySuper product, the best approach is to contact your super fund directly.
If your current super fund isn’t listed at all in the YourSuper comparison tool, it may be because they do not offer any MySuper products.
Making Informed Super Choices After Comparison
Comparing your super fund is the first step towards making informed decisions about your retirement savings. Most employees in Australia have the right to choose where their employer pays their superannuation contributions. Choosing a super fund that aligns with your needs and goals is essential.
When making a super choice, consider these key factors:
- Performance: Past performance is not indicative of future results, but it’s a useful factor to consider when comparing funds.
- Fees: Fees can significantly impact your long-term returns. Lower fees generally mean more money in your pocket over time.
- Insurance: Many super funds offer insurance options, such as death and disability cover. Consider your insurance needs and what your super fund provides.
- Investment options and services: While MySuper products have standard investment strategies, some funds may offer broader investment options or additional services if you choose to move beyond a MySuper product in the future.
The YourSuper comparison tool gives you valuable data to assess performance and fees for MySuper products. For a wider view of all products offered by a specific fund, visit the fund’s website directly.
For personalized advice, consider speaking with a financial advisor. Moneysmart offers resources on choosing a super fundExternal Link and finding the right advisor.
After using the YourSuper comparison tool and considering your options, you might want to:
- Contact a super fund: To open a new account or discuss insurance and other features.
- Consolidate your super: If you have multiple super accounts, consolidating them can simplify management. Learn more about Transferring or consolidating your super.
- Notify your employer: Use the Superannuation standard choice form to inform your employer of your chosen super fund.
By using the YourSuper comparison tool and taking the time to compare your super fund, you can take control of your retirement savings and make choices that contribute to a more secure financial future.
