YourSuper tool: What to know before comparing your super fund
The ATO has launched its new super fund tool, YourSuper, which allows Australians to do a quick comparison of default super products on the market. The tool is part of the government's wider super reforms which intend to reduce fees for members and increase returns by calling out under-performing funds.
The tool compares 80 MySuper products (these are the default option offered by major funds) by ranking their annual fees and 6-year returns. You can select up to 4 funds at a time to compare side-by-side, which will give you more performance figures to compare.
If you're planning to use the new YourSuper tool to compare your super fund, here's what you need to know before using it.
Benefits of the YourSuper tool
- It's free. The most obvious benefit of the new tool is that it's free and easy to access on the ATO's site whenever you want to.
- It can be personalised. If you access the tool by signing into your myGov account portal, it'll show you how the funds compare to your current fund. This could be particularly helpful for you if you have multiple funds, or if you've forgotten which fund you're with.
- It's quick and easy to use. Superannuation is notoriously confusing, so anything that helps you compare your options in a quick and easy way is a big win for consumers. The table shows limited (but specific) data, so it's really easy to see how the funds compare on fees and returns without getting caught up in anything else. Plus, you can sort the table in order of lowest fees, or highest returns.
- You can compare 4 at a time. Instead of looking through the long list, you can select 4 funds that you're most interested in comparing. This will give you more performance figures for each, so it's not just the 6-year return you're basing your decision on.
- It will be updated regularly. The ATO says the data will be updated at least every quarter, so you'll know you're basing your comparison off up-to-date figures. The ATO has also said it will look to add more funds over time.
What to be aware of before using YourSuper
- It doesn't compare all funds. The YourSuper tool currently only compares 80 MySuper products, which makes sense as it's where the majority of Australians have their super. However, the tool doesn't include alternative investment options, for example high growth super fund options, ethical super fund options or conservative super fund options.
- Some newer funds aren't included. We've seen several new super fund products launch in the past couple of years that have a specific investment focus. Many of these are excluded from the YourSuper tool, as they're not MySuper products. For example, Spaceship Super is well-known for its heavy investment in global tech stocks, Verve Super is designed for women and Future Super is a green investment fund.
- It doesn't show long-term performance returns. The comparison table only includes 6-year returns for each fund in the initial table. If you choose to select up to 4 funds to compare side-by-side, then you'll be able to see 3- and 5-year figures too. However, you're not able to compare 7- or 10-year returns just yet.
Top ranked funds in the YourSuper tool
Using the YourSuper tool to rank MySuper funds by fees and returns gives these results:
Top 3 funds for 6-year performance