MySuper is the new name for default workplace employer-paid superannuation. It's a big deal because MySuper products are on average much cheaper than old style super funds, are easier to understand and can perform better.
For those who want to read the background details, please click here.
How MySuper works
MySuper products have only one investment choice and one standard insurance choice. As they are less complex than regular super funds they are generally cheaper; normal super funds can cost up to 2% per year but MySuper products can be half price or even cheaper. The cheapest MySuper products can have fees as low as 0.6%.
But there is some fine print:
MySuper products are only available through employers (ie they are workplace funds);
only MySuper products can be default funds on industrial awards; and
only MySuper products can accept default SG contributions paid by employers for their employees.
Employees who don't want to use their employer's default MySuper product should use the Super Choice provisions to choose another fund. For details about how Super Choice works, please click here.
How to compare MySuper products
MySuper products as simplified super funds still have the same primary job as regular super funds: earn good investment returns after fees so that by the time you retire you will have enough superannuation savings to live on, supplement your age pension or use to buy an ongoing retirement income stream.
So when looking for which MySuper fund to join, follow the normal steps in choosing any good super fund and choose one that:
is reputable that you know and trust;
has a proven investment track record for its default investment option;
charges only reasonable fees;
offers good value insurance; and
offers other useful features like good online account access and financial advice.
For more details about how compare MySuper funds, please click here.
Also check out the following links to other parts of the SelectingSuper website:
Super funds could boost returns by 59bps: Report12 November 2019, 11:48amSuperannuation funds considering a merger or major investment portfolio changes should implement a program to manage tax costs and transaction costs to deliver meaningful benefits to funds and their members ... Read more
Retail funds shrink unlisted assets11 November 2019, 12:40pmSuperannuation funds now have close to $240 billion in unlisted assets, but retail funds have a smaller proportion of their assets allocated to them than five years ago. Read more
Legal fight could change super game8 November 2019, 12:15pmRest, the $57 billion industry fund, continues to battle a legal fight brought by one of its members that could have consequences for the entire superannuation industry. Read more
APRA begins super data transformation efforts8 November 2019, 11:21amAPRA is embarking on a multi-year project to improve the quality of its superannuation data collection that will pave the way for the proper comparison of super products, with choice super set to come ... Read more
Actuaries develop retiree rule of thumb7 November 2019, 12:37pmA group of actuaries have answered the calls of retirees looking for a simpler way to determine how much money they should draw out of their savings in retirement, developing a new three-part rule of ... Read more