What you should know about picking your first super fund

Instead of taking the first one that's offered to you, take some time to figure out which super fund is actually best for you. You'll thank yourself later.

When you open your first super fund, the easy thing to do is just opt for the one your employer recommends. But is that really the best thing to do?

Instead of blindly heading into what will likely be one of the biggest investments of your life, why not set aside some time to do a little research and compare super funds?

Choose wisely, and you could end up with a much more generous nest egg by the time you retire, while also putting your hard-earned money into investments you actually care about.

If that sounds good to you, keep reading to find out what you should know before choosing a super fund and why it's so important to pick carefully.

Your first super fund could be very important

If you stick with your first super fund and it's underperforming, it could be disastrous for your retirement plans. Let's take a look at the math, using MoneySmart's superannuation calculator.

Okay, so imagine you open your first super fund at 21 and consistently earn $65,000 every year until you reach 65. If you're stuck with an underperforming fund with an average return of 5%, you'd have less than $354,737 saved by the time you hit 65.

However, if your first fund was a high performer, you'd be retiring with much more. For example, as of 30 December 2025, Aware Super's High Growth option had a 10-year annual return of 9.27%. Using that percentage and the same details as above, you'd be retiring with a whopping $1,044,953.*

Remember, this is an example only, and your circumstances might not be as simple as the situation described. But you can play around with the MoneySmart superannuation calculator to get a better understanding of your specific situation.

You have to pay fees

That takes us nicely onto our next point. All super funds charge fees and you'll have to keep your eyes peeled for two different types – admin or fund fees and investment fees.

They'll either be a set dollar amount, a percentage of your balance or a combination of both. Simply put, the lower the admin fees, the better. But sometimes a higher investment fee might indicate that a fund is performing well. So it pays to do your research!

While checking fees is important, no matter who you are or how long you've been in the workforce, they're particularly important for low-income earners and first-job starters.

That's because if you don't have a particularly big super balance, fixed dollar administration fees can have a disproportionate impact on savings.

Performance varies between funds

Not all funds are as profitable as others. Some funds have a higher-risk strategy, which brings potential for higher returns. Others are more conservative, sticking with lower-risk investments that deliver modest returns.

Many funds, including Aware Super, will manage an individual's risk journey. That means you'll have a higher-risk investment strategy when you're young and a much safer strategy as you near retirement.

While past performance isn't always an indicator of future results, it is important to look at how competitive your super fund has been over different time frames.

Generally speaking, you should compare like for like. This might be comparing the default option of one fund against another. Or you might compare default lifecycle options to understand where your money will sit during the bulk of your earning years.

You might automatically get insurance

Many super funds offer a range of insurance policies to members from the moment you join, including life insurance, TPD insurance, and income protection insurance.

This is one of the most affordable ways to get cover and funds usually let their members adjust the cover amount, so they can create a policy that suits them.

If you're worried about the insurance premiums being taken from your nest egg, then you can consider making voluntary contributions to offset the costs. That way, you could still be protected and maintain your super balance.

Learn more about getting your super sorted with Aware Super

* Aware Super's High Growth option return over 10 years to 31 December 2025. SuperRatings Fund Crediting Rate Survey, December 2025. Based on the SR Growth (77-90) Index. Returns are after tax and investment management expenses but before the deduction of administration fees. Past performance is not an indicator of future performance.

General advice only. Consider your objectives, financial situation or needs, which have not been accounted for in this information and read the relevant PDS and TMD before deciding to acquire, or continue to hold, any financial product.

Sponsored by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340), trustee of Aware Super (ABN 53 226 460 365).