What are MySuper funds?
A MySuper fund is a low-cost, no-frills, basic superannuation option for Australians. It's usually the default product offered by Australian superannuation funds to members.
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Many super funds now offer a simple and cost-effective super account called MySuper. MySuper is a type of superannuation account, and is a government initiative to provide a low-cost and no-frills super option for Australian wokers. This guide will outline what MySuper is and how it can benefit you as you save for retirement. You can also compare a range of MySuper products below.
What is MySuper?
All Australian employers have a default super fund for employees who don't already have their own super fund, or who don't want to choose a super fund themselves. MySuper is a government initiative to provide simple super products for employers to choose as their default fund for employees. MySuper options have basic features and fee structures allowing members to compare funds easily based on cost, investment performance and insurance.
The idea of MySuper products is that they are low-cost, no-frills options (this means they're simple to understand and compare, without any confusing investment options or hard-to-understand features). MySuper products are offered by existing retail or industry super funds as an investment option alongside their existing investment options.
The features of MySuper
MySuper accounts offer:
- Low fees
- Simple features
- Simple, default insurance options which you can easily opt out of if you wish
- A single diversified investment option, or
- A lifecycle investment option based on your age
MySuper investment options
There are two main investment options offered by MySuper products; a diversified investment portfolio or a lifecycle strategy that invests based on your age.
Lifecycle investment option
With this option, your super is invested according to your age. For example when you're young your super will be invested in more high-risk growth assets like local and international shares, because you have more time to ride out any market volatility. If you're older (for example in your 50s) your super will be invested in more low-risk options like term deposits and bonds.
This is a good set-and-forget investment strategy because it will be adjusted for you as you get older, to make sure it's invested appropriately. This means you won't have to think about your super until you're looking to retire, which is appealing for a lot of people who don't want the stress of managing their super.
Single diversified investment option
This investment option offers one single diversified portfolio. This option doesn't invest in line with your age, but is still managed on your behalf and continually adjusted. A lot of these investment options will allocate about 70% of your super balance to growth assets (higher risk, but higher return assets like shares) and about 30% to defensive assets (like cash products).
Compare MySuper funds
*Past performance data is for the period ending December 2020.
Disclaimer: Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. This article is general advice. You should consider your own personal circumstances before deciding if a superannuation product is right for you. Superannuation is a long term investment and past performance is not indicative of future performance.
The pros and cons of MySuper
Pros:
- Lifecycle investment strategy is a great set-and-forget option.
- MySuper must offer a standard level of life and Total and Permanent Disability (TPD) insurance.
- MySuper is easy understand, and simple to use and manage.
- MySuper should have lower fees than standard retail super funds
Cons:
- Some critics say MySuper places too much emphasis on low fees and not enough on performance.
- If you want to be very 'hands-on' with your super this option might not be for you
What is the difference between MYSUPER and a regular BALANCED fund?
Hi Darren,
Thank you for getting in touch with Finder.
A balanced fund is a type of investment option while MySuper is one of the superannuation options for Australians. Your fund’s various investment options may contain the same types of assets, but at a different weighting and to suit the level of risk you are comfortable with. You can learn more about the balanced funds.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I wish to compare the % return on my allocated pension accounts with you, with my “locked up ” account with BT.
All the years from 2009 onwards please. Also is the annual charge still $400 , in fact , what are the total annual costs with my cbus and , if relevant , when did they change.
(I intend fighting Westpac and wish to hi-lite what’s available compared with their awful costs and financial adviser performance.)
Thank you in anticipation.
Hi Paul,
Thank you for reaching out. Please note that you’ve come through to finder.com.au – a financial comparison website and general information service designed to help consumers make better decisions. We do not offer super funds and we are not affiliated with any company we feature on our site so we can only offer general advice.
I’m afraid we do not have that information you are looking for. Is your account with Cbus? If so, please contact them directly if you’d like to compare the return on your allocated pension and all other fees and charges as well as the changes on your account.
In case, you can also find super funds available for you on our website. You can also read more details on industry super funds.
Alternatively, you can speak to a financial adviser who can help you manage your super.
Cheers,
May