Last month we reported on the Australian Prudential Regulation Authority (APRA) revealing the 13 superannuation products that failed its performance tests.
If you found that your money was invested in one of those 13 funds, the news might have come as quite a shock and left you with questions regarding your next course of action.
The 13 funds that were responsible for products that didn’t meet the Your Future, Your Super benchmarks, included Christian Super, a fund for Victorian teachers from independent schools, a BT Super fund, a Colonial First State super fund and a fund established for Commonwealth Bank employees.
If you were a member of one of the 13 funds that failed the test, you should have received some form of communication from the fund by now as these funds were required to inform members by 27 September, advising them of their performance test outcome.
That letter should also have been accompanied by the details for accessing the Australian Taxation Office (ATO) YourSuper comparison tool.
The comparison tool will help you to compare MySuper products and choose a super fund that meets your needs, if you are considering switching super funds.
The tool is updated quarterly with all the latest APRA data and displays a table of MySuper products ranked by fees and net returns.
You are then able to use the tool to select and compare up to four MySuper products at a time in more detail, with links to a super fund’s website when you select it from the table.
If you access the personalised version of the tool through your myGov account, it can show you your current super accounts alongside other My Super products.
To access the personalised version, go to the Super drop-down menu and select Information, then select YourSuper comparison.
The tool also provides links to help you consolidate your super accounts.
If you don’t use the personalised version of the tool, it provides a default super balance of $50,000. You are able to edit this value and add your age by clicking the Filter button, which will then adjust the results to show you relevant product options and fees.
Once you have selected the four super products you would like to shortlist and compare in more detail, you will be able to view the investment performance, past seven-year net return, past five-year net return, past three-year net return, the total annual fees and the investment strategy.
Product details will take you to the fund website for further information specific to that super product.
You can ‘pin’ up to six MySuper products to the top of the results list by using the Find MySuper product search.
If you do switch funds, it is a relatively easy process so don’t be daunted or hesitant. Some funds say you can join in as little as 15 minutes, and considering the difference between having your money in a strong fund and having it a poorly performing fund, the sooner you switch the better.
Was your super fund one of the 13 listed as an underperformer last month? Have you tried using the comparison tool? Are you considering switching your super fund? Why not share your thoughts in the comments section below?
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