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Australia’s worst super funds revealed

Piggy bank with the world 'superannuation' on the side and hands holding $100 notes.
Poor performing super funds are risking Aussies' retirement savings. (Source: Getty)

Australia’s best and worst super funds have been named in a new report, with many Aussies stuck in poor performing funds.

The findings, revealed in the Stockspot Fat Cat Funds Report, found that choosing a super fund with the lowest fees could actually leave you $245,000 better off in retirement.

The report analysed more than 500 of Australia’s largest super funds, looking at performance and risk over a five-year period.

The worst-performing funds were:

  • OnePath

  • Colonial First State

  • AMP

  • ClearView

The best-performing funds were:

  • Qantas Super

  • UniSuper

  • HESTA

  • Australian Super

  • IOOF

“In our research, we’ve found that OnePath is the worst-performing super fund in Australia,” Stockspot CEO Chris Brycki said.

“Unfortunately, for people stuck in funds like OnePath and AMP, they've been paying much higher fees, and those fees have eaten away their returns.”

Brycki said that, despite the importance of super, the information provided by the major funds was often “murky, complex and tough to obtain”.

“Collectively, these 500 funds have around $2 trillion in funds under management and cover more than 20 million superannuation member accounts,” he said.

“These poorly performing super funds are still gobbling up fees and delivering poor returns for their members.

“Fees are like termites eating away at our returns, leaving you not very much in retirement.”

Brycki said all super fund members should check to see how much they were being charged by their super fund in fees.

“If it’s more than 1.5 per cent, then you are probably being ripped off,” Brycki said.

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