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SUPERANNUATION: Which is the best super fund?


Depending on how close you are to retirement your level of interest in your superannuation fund, and its performance may vary.


But it pays to be engaged, even if retirement seems a way away.


Particularly when The Association of Superannuation Funds of Australia (ASFA) Retirement Standard currently estimates you’ll need two-thirds (67%) of your pre-retirement income per annum to maintain a ‘comfortable lifestyle’.

That’s $44,818 per year for singles and $63,352 for couples.


Are you on track?


Here we’ll take a look at some superannuation trends and which funds are performing best.


The superannuation landscape across Australia has changed considerably during 2021. The Super Guarantee Rate – or the amount employers must contribute to employees super – has risen to 10% and for the first time, the Australian Prudential Regulation Authority (APRA) released a report which ranked 76 MySuper funds based on their annual performance, including fees and returns.


It’s important to compare apples with apples, and the APRA report compared only the ‘default my super investment’ option in these funds. As we pointed out at the time, if you have made contributions to one of the superannuation entities listed, it does not automatically mean that your particular investment is one of the poor performers.


The table below is from SuperRatings who according to their website “encourage and pursue greater transparency within the superannuation industry”. It shows the top 10 Balanced super options (meaning 60-76% is invested in growth assets) ranked by a 10-year return (up to 30 June 2021).

Source: SuperRatings (https://www.superratings.com.au/about-us)


But even this comparison isn’t always a reliable tool as a range in growth assets between 60-76% can lead to vastly different returns.

And returns aren’t the only measure when it comes to choosing the ‘best’ super fund.


You may also like to consider the associated fees, what insurance offerings are available, functionality, investment options that suit your personal preferences and the overall level of customer service and satisfaction.


So, if you’d like to look at strategies for increasing your superannuation balance, are considering salary sacrificing, or looking to form a firm financial plan for retirement the team at Hub Advisory Group are here to help.


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