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TMD

Showing superannuation funds based on investment performance of
and a super balance of
Past 5-year return
8.75

% p.a

FYTD return

2.77

% p.a

Company
Calc fees on 50k

$513

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
SuperRatings Platinum 2021 MySuper
Go to site

Balanced (MySuper)

More details
Product
Past 5-year return
8.66

% p.a

FYTD return

3.68

% p.a

Company
Calc fees on 50k

$458

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
SuperRatings Platinum 2021 MyChoice Super
Go to site

MySuper Balanced

More details
Past 5-year return
8.94

% p.a

FYTD return

3.01

% p.a

Company
Calc fees on 50k

$928

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
SuperRatings Platinum 2021 MyChoice Super
Go to site

Horizon 4 - Balanced Portfolio

More details
Past 5-year return
9.13

% p.a

FYTD return

2.51

% p.a

Company
Calc fees on 50k

$444

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
SuperRatings Platinum 2021 MyChoice Super
Go to site

Balanced

More details
Past 5-year return
8.77

% p.a

FYTD return

3.45

% p.a

Company
Calc fees on 50k

$502

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
SuperRatings Platinum 2021 MyChoice Super
Go to site

Balanced Growth - Index

More details
Past 5-year return
8.07

% p.a

FYTD return

2.02

% p.a

Company
Calc fees on 50k

$523

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
SuperRatings Platinum 2021 MyChoice Super
Go to site

Balanced

More details

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Superannuation funds we compare at RateCity

Learn more about superannuation

Superannuation is the money set aside for your retirement. Your employer directly pays this money into your superannuation account out of your pre-tax salary. By Australian law, your employer is required to contribute a certain percentage of your ordinary-time earnings (OTE) into your superannuation account. This is known as the super guarantee.

For many Australian workers, their superannuation is their biggest asset, and one that is meant to provide long-term financial security. That’s why picking the most suitable super fund for your needs is so important. 

If you don't pick a super fund, your employer will choose one for you from a selection of products listed under the MySuper government initiative. MySuper products are generally basic funds without extra features and fees, but they may not offer the top Australian rates. So, it's worth comparing your options to find the best super fund for you.

What it means to have a top superannuation rate

A super fund with a top superannuation rate means that it is one of the best-performing super funds in the market in terms of investment return over a five-year period, having provided its members with past returns that are significantly above the average.

Since superannuation is a long-term investment for Australians, this is a very important factor to consider before signing up with a super fund. A super fund’s annual returns can make a huge impact to your retirement plans in the long run.

While some super funds regularly appear in the annual “Top Performing Super Funds” ranking, past performance is no guarantee of future performance. Also, the superannuation market is large and very competitive, so a super fund that is at the top of the list today may be well down the list in the future.

The following table shows an example of how an investment return difference of just 1% could potentially affect your retirement savings over the life of your career:

Age 25 years 25 years 
Income  $60,000 $60,000
 Super contribution 9.5% of salary9.5% of salary
 Investment return 5%6%
 Fees 1.5% of balance1.5% of balance
 Super balance at age 65 $221,776$268,664

Source: RateCity.com.au, MoneySmart Superannuation Calculator. Notes: Assumes a starting super balance of $0. Assumes no changes to income during working life for the sake of calculation.

How does the ratings system work?

RateCity shares product ratings awarded by superannuation research firm SuperRatings, which aims to recognise the achievements of individual super funds across a range of categories. SuperRatings ranks the top performers in some of the key comparison metrics for superannuation funds, including strong returns, low fees and low insurance premiums.

According to SuperRatings, the ratings are designed to reflect the value for money offered by each superannuation fund, with the best funds being the ones that "provide the greatest potential to maximise retirement savings in a well serviced, secure environment".

The ratings can be a helpful tool to assist with your super comparison, but it's important to also look at other performance measures in order to make a well informed decision and choose the super fund that's right for you.

For more information, read the ratings methodology on the SuperRatings website.

How do I make sure I'm getting the top Australian rates?

When you're looking for a super fund with a top Australian rate, you might be tempted to look at past performance returns alone. However, there are a few steps you can take to get a clearer understanding of a fund's overall rate of return.

  1. Use a comparison table like the one on this page to compare super funds by their past five-year return. You can use the 'sort' function to make this easier.
  2. Consider any fees that may be charged. Fees detract from the fund's overall return, so even if your fund has one of the highest rates of past performance, high fees could potentially make it less competitive.
  3. Check to see if the fund has received any SuperRatings awards in order to get an idea of what its strengths may be.

Remember, past performance isn't necessarily a reliable indicator of future performance. So, considering other factors in your decision making can give you a better chance of securing a fund that offers a top Australian rate.

What to consider when getting a top super rate fund

It’s easy to be drawn to a superannuation fund that has had an impressive, high-performing track record over the last year or so.

However, take note that a super fund’s high investment performance in the past does not guarantee that it will still be just as high-performing in the future. Fluctuations in the market are always expected and the superannuation rates are always subject to change. Even just 1 or 2 per cent can make a huge difference to your retirement plan.

Before signing up for a super fund, consider these other factors:

Fees

Generally, superannuation funds have administration fees and fund management fees that go along with them. Super fees can also differ from one investment option to another.

There are also:

  • switching fees;
  • exit fees;
  • advice fees;
  • investment fees;
  • insurance premium fees, and;
  • activity-based fees, among others.

However, if you research enough and compare different super funds, you will see that some products may have much lower fees than others. Although a cheaper super product is not necessarily a better super product, fees are one of the main factors to weigh up when researching super options.

Investment options

Super funds offer a variety of investment options for you to consider. This can be in the form of:

  • bonds;
  • cash;
  • local and international shares;
  • property;
  • and much more, or a combination of these assets.

Decide which investment option – or options – you want to prioritise first before signing up for a super fund.

Like any financial product, you can also seek professional financial advice on superannuation to get an expert opinion on which investment options may be most suitable for your situation.

Insurance options

Superannuation funds also offer a range of insurance cover options. These insurance options include:

  • Life insurance - Paid to your beneficiaries upon your death
  • Total and permanent disability insurance - Paid if you encounter an accident and become permanently disabled
  • Income protection insurance - Paid if you have to stop work (permanently or temporarily) due to a physical or mental medical condition

Other services

One factor to consider when joining a super fund is its accessibility. Can you access your account details online? How easy is it to get customer service?

Other services to consider include:

  • Financial planning
  • Retirement planning
  • Member education

How to compare super funds with top superannuation rates

There are websites that can help you compare hundreds of super funds in Australia to find those that might interest you and suit your financial situation.

To compare super funds at RateCity, you can narrow down your search by applying relevant filters, entering your current super balance and sorting by fees or returns.

There are several different types of super fund to compare at RateCity, including:

  • industry funds;
  • retail super funds;
  • pension funds;
  • self-managed super funds;
  • low fee super funds;
  • employer specific super funds, and;
  • government super funds.

Before making the switch to a different super fund, consider reading the product disclosure statement (PDS) for more information, including any significant benefits and risks.

Frequently asked questions

What is a superannuation fund?

A superannuation fund is an institution that is legally allowed to hold and invest your superannuation. There are more than 200 different superannuation funds in Australia. They come in five different types:

  • Retail funds
  • Industry funds
  • Public sector funds
  • Corporate funds
  • Self-managed super funds

Retail funds are usually run by banks or investment companies.

Industry funds were originally designed for workers from a particular industry, but are now open to anyone.

Public sector funds were originally designed for people working for federal or state government departments. Most are still reserved for government employees.

Corporate funds are arranged by employers for their employees.

Self-managed super funds are private superannuation funds that allow people to directly invest their money.

What fees do superannuation funds charge?

Superannuation funds can charge a range of fees, including:

  • Activity-based fees – for specific, irregular services, such as splitting an account after a divorce
  • Administration fees – to cover the cost of managing your account
  • Advice fees – for personal investment advice
  • Buy/sell spread fees – when you make contributions, switches and withdrawals
  • Exit fees – when you close your account
  • Investment fees – to cover the cost of managing your investments
  • Switching fees – when you choose a new investment option within the same fund

How do you open a superannuation account?

Opening a superannuation account is simple. When you start a job, your employer will give you what’s called a ‘superannuation standard choice form’. Here’s what you need to complete the form:

  • The name of your preferred superannuation fund
  • The fund’s address
  • The fund’s Australian business number (ABN)
  • The fund’s superannuation product identification number (SPIN)
  • The fund’s phone number
  • A letter from the fund trustee confirming that the fund is a complying fund; or written evidence from the fund stating it will accept contributions from your new employer; or details about how your employer can make contributions to the fund

You might want to provide your tax file number as well – while it’s not a legal obligation, it will ensure your contributions will be taxed at the (lower) superannuation rate.

What superannuation details do I give to my employer?

When you start a job, your employer will give you what’s called a ‘superannuation standard choice form’. Here’s what you need to complete the form:

  • The name of your preferred superannuation fund
  • The fund’s address
  • The fund’s Australian business number (ABN)
  • The fund’s superannuation product identification number (SPIN)
  • The fund’s phone number
  • A letter from the fund trustee confirming that the fund is a complying fund; or written evidence from the fund stating it will accept contributions from your new employer; or details about how your employer can make contributions to the fund

You should also provide your tax file number – while it’s not a legal obligation, it will ensure your contributions will be taxed at the (lower) superannuation rate.

How many superannuation funds are there?

There are more than 200 different superannuation funds.

How do you set up superannuation?

Before you set up a superannuation account, you’ll need to check if you’re allowed to choose your own fund. Most Australians can, but this option doesn’t apply to some workers who are covered by industrial agreements or who are members of defined benefits funds.

Assuming you are able to choose your own fund, the next step should be research, because there are more than 200 different superannuation funds in Australia.

Once you’ve decided on your preferred superannuation fund, head to that provider’s website, where you should be able to fill in an online application or download the appropriate forms. You’ll need your tax file number (assuming you don’t want to be charged a higher tax rate), your contact details and your employer’s details (if you’re employed).

Can I choose a superannuation fund or does my employer choose one for me?

Most people can choose their own superannuation fund. However, you might not have this option if you are a member of certain defined benefit funds or covered by certain industrial agreements. If you don’t choose a superannuation fund, your employer will choose one for you.

How do I choose the right superannuation fund?

Different superannuation funds charge different fees, offer different insurances, offer different investment options and have different performance histories.

So you need to ask yourself these four questions when comparing superannuation funds:

  • How many fees would I have to pay and what would they cost?
  • What insurances are available and how much would they cost?
  • What investment options does it offer? How would they match my risk profile and financial needs?
  • How have these investment options performed historically?

How do you create a superannuation account?

Before you create a superannuation account, you’ll need to check if you’re allowed to choose your own fund. Most Australians can, but this option doesn’t apply to some workers who are covered by industrial agreements or who are members of defined benefits funds.

Assuming you are able to choose your own fund, the next step should be research, because there are more than 200 different superannuation funds in Australia.

Once you’ve decided on your preferred superannuation fund, head to that provider’s website, where you should be able to fill in an online application or download the appropriate forms. You’ll need your tax file number (assuming you don’t want to be charged a higher tax rate), your contact details and your employer’s details (if you’re employed).

How do I change my superannuation fund?

Changing superannuation funds is a common and straightforward process. You can do it through your MyGov account or by filling out a rollover form and sending it to your new fund. You’ll also have to provide proof of identity.

What is superannuation?

Superannuation is money set aside for your retirement. This money is automatically paid into your superannuation fund by your employer.

How do I combine several superannuation accounts into one account?

The process used to consolidate several superannuation accounts into one is the same process used to change superannuation funds. This can be done through your MyGov account or by filling out a rollover form and sending it to your chosen fund.

How do you access superannuation?

Accessing your superannuation is a simple administrative procedure – you just ask your fund to pay it. You can access your superannuation in three different ways:

  • Lump sum
  • Account-based pension
  • Part lump sum and part account-based pension

However, please note that your superannuation fund will only be able to make a payout if you meet the ‘conditions of release’. The conditions of release say you can claim your super when you reach:

  • Age 65
  • Your ‘preservation age’ and retire
  • Your preservation age and begin a ‘transition to retirement’ while still working

The preservation age has six different categories:

Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
From 1 July 1964 60

There are also seven special circumstances under which you can claim your superannuation:

  • Compassionate grounds
  • Severe financial hardship
  • Temporary incapacity
  • Permanent incapacity
  • Superannuation inheritance
  • Superannuation balance under $200
  • Temporary resident departing Australia

How much superannuation should I have at age 40?

The amount of superannuation you should have at age 40 is based on how much money you need to have at retirement. That, in turn, is based on how much money you expect to spend each week during your retirement. That, in turn, depends on whether you expect to lead a modest retirement or a comfortable retirement.

The Association of Superannuation Funds of Australia (ASFA) estimates you would need the following amount per week:

Lifestyle Singles Couples
Modest $465 $668
Comfortable $837 $1,150

Here is the superannuation balance you would need to fund that level of spending:

Lifestyle Singles Couples
Modest $50,000 $35,000
Comfortable $545,000 $640,000

These figures come from the March 2017 edition of the ASFA Retirement Standard.

The reason people on modest lifestyles need so much less money is because they qualify for a far bigger age pension.

Here is how ASFA defines retirement lifestyles:

Category Comfortable Modest Age pension
Holidays One annual holiday in Australia One or two short breaks in Australia near where you live Shorter breaks or day trips in your own city
Eating out Regularly eat out at restaurants. Good range and quality of food Infrequently eat out at restaurants. Cheaper and less food Only club special meals or inexpensive takeaway
Car Owning a reasonable car Owning an older, less reliable car No car – or, if you do, a struggle to afford the upkeep
Alcohol Bottled wine Casked wine Homebrew beer or no alcohol
Clothing Good clothes Reasonable clothes Basic clothes
Hair Regular haircuts at a good hairdresser Regular haircuts at a basic salon Less frequent haircuts or getting a friend to do it
Leisure A range of regular leisure activities One paid leisure activity, infrequently Free or low-cost leisure activities
Electronics A range of electronic equipment Not much scope to run an air conditioner Less heating in winter
Maintenance Replace kitchen and bathroom over 20 years No budget for home improvements. Can do repairs, but can’t replace kitchen or bathroom No budget to fix home problems like a leaky roof
Insurance Private health insurance Private health insurance No private health insurance

 

 

What are ethical investment superannuation funds?

Ethical investment funds limit themselves to making ‘ethical’ investments (which each fund defines according to its own principles). For example, ethical funds might avoid investing in companies or industries that are linked to human suffering or environmental damage.

How is superannuation calculated?

Superannuation is calculated at the rate of 9.5 per cent of your gross salary and wages. So if you had a salary of $50,000, your superannuation would be 9.5 per cent of that, or $4,750. This would be paid on top of your salary.

The ‘superannuation guarantee’, as it is known, has been at 9.5 per cent since the 2014-15 financial year. It is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

Am I entitled to superannuation if I'm a casual employee?

As a casual employee, you’re entitled to superannuation if:

  • You’re over 18 and earn more than $450 before tax in a calendar month
  • You’re under 18, you work more than 30 hours per week and you earn more than $450 before tax in a calendar month

Can I transfer money from overseas into my superannuation account?

Yes, you can transfer money from overseas into your superannuation account – under certain conditions. First, you must provide your tax file number to your fund. Second, if you are aged between 65 and 74, you must have worked at least 40 hours within 30 consecutive days in a financial year. (Australians under 65 aren’t subject to a work test; Australians aged 75 and over cannot receive contributions to their superannuation account.)

Money transferred from overseas will generally count to both your concessional contributions limit and your non-concessional contributions limit. You will have to pay income tax on the applicable fund earnings component of any money transferred from overseas. You might also be liable for excess contributions tax.

What is the difference between accumulation and defined benefit funds?

A majority of Australians are in accumulation funds. These funds grow according to the amount of money invested and the return on that money.

A minority of Australians are in defined benefit funds – many of which are now closed to new members. These funds give payouts according to specific rules, such as how long the worker has been with their employer and their final salary before they retired.

What will the superannuation fund do with my money?

Your money will be invested in an investment option of your choosing.