It’s about to be a brand new year and with more Aussies looking for a new job, it’s a good time to remember that your super fund will be following you around.
As of 1 November this year workers were no longer automatically signed up to their employers super fund unless opting not to - meaning if you're stuck in a dud fund it may be time to switch things up.
The Australian Prudential Regulation Authority (APRA) has released a heatmap exposing the best and worst super funds for Australians.
The first release was back in August, where APRA named the 13 super funds which had failed its test while this release named the best performing funds.
So, if you’re thinking of making the switch, here are the top 10 super funds that are publicly (those which are tied to private companies for their employees have been excluded).
UniSuper - Balanced
Australian Ethical Retail Super Fund - Balanced
AustralianSuper - Mysuper
QSuper - Lifetime
Cbus - MySuper
HostPlus - Balanced
Statewide - MySuper
First Super - MySuper
Care Super - CareSuper
Aware Super - MySuper Lifecycle
The heatmap works by tracking each fund's performance from the past seven years and comparing it to an investment benchmark.
Why is switching super funds important?
If you are stuck in a dud fund you could be missing out on hundreds of thousands of dollars in retirement.
For example, using the MoneySmart super calculator, a 30 year old who makes $75,000 a year with a super balance of $60,000 could retire with over $1,000,000 if they were in the best option compared to just $511,000 for someone in the average option.
In alphabetical order, the 13 products that failed to meet the new benchmark performance test are:
AMG Super - AMG MySuper
ASGARD Independence Plan Division two - ASGARD Employee MySuper
Australian Catholoic Superannuation and Retirement Fund - LifetimeOne
AvSuper Fund - AvSuper Growth (MySuper)
BOC Gases Superannuation Fund - BOC MySuper
Christian Super - My Ethical Super
Colonial First State FirstChoice Superannuation Trust - Colonial First State FirstChoice Superannuation Trust
Commonwealth Bank Group Super - Accumulate Plus Balanced
Energy Industries Superannuation Scheme-Pool A - Balanced (MySuper)
Labour Union Co-Operative Retirement Fund - MySuper Balanced
Maritime Super - MYSUPER INVESTMENT OPTION
Retirement Wrap - BT Super MySuper
The Victorian Independent Schools Superannuation Fund - VISSF Balanced Option (MySuper Product)