Australia’s superannuation system manages approximately AUD 3.9 trillion in retirement savings as at early 2026, spread across approximately 100 regulated funds. Industry super funds — originally established for specific industries but now open to all Australians — dominate the top of performance tables. AustralianSuper (AUD 340 billion under management), Australian Retirement Trust (AUD 310 billion), and UniSuper (AUD 140 billion) are the three largest. Retail funds, run by banks and investment companies, charge higher fees on average but offer more investment choice. The Productivity Commission estimates that a 0.5% difference in annual fees costs a typical worker AUD 100,000 over their working life. Choosing the right fund matters.
Top Performing Industry Funds: 5-Year Returns
Based on SuperRatings data to December 2025, the top-performing balanced (growth) options over a 5-year period are: Hostplus Balanced (7.8% p.a. annualised), UniSuper Balanced (7.6%), AustralianSuper Balanced (7.5%), Australian Retirement Trust Super Savings Balanced (7.4%), and Cbus Growth (7.2%). All returns are net of investment fees and taxes. The median balanced fund returned 6.9% over the same period. Past performance is not indicative of future returns — but the persistence of industry fund outperformance over 10- and 15-year periods is supported by APRA’s annual superannuation performance test.
Fee Comparison: How Much You Pay Matters
Fees are the largest controllable factor in long-term super outcomes. On a AUD 50,000 balance, annual fees (investment + administration) range from approximately AUD 350 (Hostplus Indexed Balanced, a low-cost indexed option) to AUD 890 (typical retail fund balanced option). Industry funds charge an average of 0.70-0.85% in total fees (investment + admin) for their default balanced options. Retail funds average 1.10-1.30%. The difference — roughly 0.4% per year — compounds to AUD 45,000 on a AUD 50,000 starting balance over 40 years at 7% returns. Indexed options within industry funds (e.g., Hostplus Indexed Balanced, Rest Super Indexed) charge as low as 0.05-0.10%, but offer no active management.
Insurance Through Super: Default Cover
Most super funds provide default life insurance (death and total and permanent disablement, or TPD) and income protection insurance. Premiums are deducted from your super balance. Default cover is typically provided without medical underwriting — a significant advantage for people with pre-existing conditions who might not qualify for retail insurance. However, default cover may be inadequate (low sum insured) or inappropriate (duplicate cover if you hold multiple super accounts). The average default death and TPD cover is approximately AUD 200,000. Cancelling unnecessary insurance and consolidating multiple accounts can save several hundred dollars per year in premiums and fees.
How to Choose and Switch Funds
The ATO’s YourSuper comparison tool provides a ranked list of funds by fees and net returns. When choosing a fund, compare the 5-year net return (after all fees and taxes), not the 1-year return, which can be distorted by market volatility. To switch: create an account with your chosen fund (online, takes 10 minutes), provide your TFN, then request a consolidation transfer (funds are required to process these within 3 business days under the SuperStream rules). Do not close your old fund account before the transfer completes — the old fund should do this automatically.
FAQ
Q: Can I access my super before retirement? A: Generally no. Super is preserved until you reach your preservation age (between 55 and 60, depending on your date of birth) and retire. Early access is permitted only under specific conditions: severe financial hardship, compassionate grounds (medical treatment, funeral expenses, preventing foreclosure), terminal illness, or temporary incapacity. The First Home Super Saver Scheme allows voluntary contributions to be withdrawn for a first home deposit (up to AUD 50,000).
Q: What happens to my super when I leave Australia? A: Temporary residents who leave Australia permanently can claim their super as a Departing Australia Superannuation Payment (DASP). The DASP is taxed at 35% for the taxed component (or 45% for the untaxed component, typically from government funds). Working holiday makers pay 65% on the entire balance upon departure. This high tax rate is controversial and has led to many departing workers leaving super balances unclaimed rather than withdrawing.
Q: Should I consolidate multiple super accounts? A: Yes. Multiple accounts mean multiple sets of fees and potentially duplicate insurance premiums. Consolidate through your myGov account linked to the ATO, which will find all accounts associated with your TFN. Before consolidating, check your insurance cover — you may lose existing cover that you cannot replace due to changes in health.
Q: What is the difference between accumulation and defined benefit funds? A: Accumulation funds (the standard for most Australians) build a balance from contributions and investment returns. Defined benefit funds (mainly in the public sector, e.g., CSS, PSS, some UniSuper plans) calculate your retirement benefit based on a formula using your years of service and final average salary. Defined benefit members should generally not consolidate or switch.
Q: How much super should I have at my age? A: ASFA (Association of Superannuation Funds of Australia) publishes retirement standards. As a rough guide, at age 30 a comfortable retirement requires approximately AUD 60,000-70,000 in super; at age 40, AUD 160,000-180,000; at age 50, AUD 300,000-330,000; at age 60, AUD 460,000-500,000 (all in 2026 dollars). These are guidelines, not targets, and assume you own your home by retirement.
Sources
- SuperRatings Fund Performance Data
- APRA Annual Superannuation Performance Test
- ATO YourSuper Comparison Tool
- ASFA Retirement Standard
- ATO Departing Australia Superannuation Payment
This article is informational only and does not constitute financial advice.