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Six questions to consider when choosing a superannuation fund

With so many Australian superannuation funds available – how do you choose one that’s right for you?

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Choosing the right super fund can make a big difference to your retirement savings, so it’s important to understand what matters most to you.
Comparing funds by performance, fees, investment options and insurance can help you find one that aligns with your goals.
Taking time to research and compare your options can help you make a confident, informed decision about your super.

With so many Australian superannuation funds available – how do you choose one that’s right for you? We understand it’s a big decision that could affect how much money you have when you retire. You may have a long time until retirement, but making the right choice now could make a difference when you get there.

There are some key factors to look at when comparing super funds:

Performance – how has the fund performance in previous years?
Fees – what fees will be charged by the super fund?
Investment options – does the fund offer options that align with your risk appetite, personal preference and financial goals?
Insurance – is the level of insurance cover available appropriate for me?

1. What should you consider before comparing superannuation funds?

The first step in choosing a super fund is to understand your financial situation and objectives. That includes decisions like when you plan to retire and how much investment risk you’re willing to take.

It’s important to consider:

Risk appetite – how much risk are you comfortable with or willing to take on?
Investment strategy – does the fund offer options that align with your financial objectives and personal investment preferences?
Preferred level of involvement – do you want to actively manage your super and make investment choices, or leave it to someone else?
Future needs – when will you retire, and how much will you need in retirement?
Online access and features – does the super fund have an online app or portal and what other online features are available?

Answering these questions will help you decide which features and benefits are important to you in a super fund.

2. What is the super fund’s investment performance?

A key consideration when comparing super funds is investment performance. Put simply, this is how much is earned through investing your money in super. It’s important to remember past performance is not a reliable indicator of future performance.

Consider a difference of just 1% p.a. in investment performance. This can have a considerable impact on a superannuation account balance over time due to the power of compounding (this is where you earn interest on the amount you invest as well as past interest).

Suppose two people, Minh and Jennifer, both contribute $5,000 each year to their super accounts. Minh's account earns a 7% annual return, while Jennifer's account earns an 8% annual return. Both contribute for a period of 30 years.

After 30 years, Minh's account balance would be approximately $472,000, compared with Jennifer’s account balance of $566,000 - a difference of roughly $94,000¹.

When considering performance, look for funds with a consistent track record of returns and compare the fees and costs to identify the net benefit or return. It’s important to compare investment options with a similar risk profile and investment timeframe to get an accurate assessment. When comparing superannuation performance, remember performance can fluctuate over time, depending on market conditions.

3. What are the annual superannuation fees and costs?

Superannuation fees vary between funds. These fees usually cover the costs associated with managing the account and investing your money. Understanding fees is important as they reduce your balance and can affect how much money you have in retirement.

Typical fees charged by super funds:

Administration fees – fee for running the super fund which can be a fixed amount, a percentage of your super balance, or a combination
Investment fees – cost of investing your super money, often a percentage
Other fees – commonly include transaction fees (such as buy/sell spread to switch investments), withdrawal fee, and contribution fee

Investment fees could also depend on how your super is invested. Some super funds charge a range of additional fees, so it’s important to read through the Product Disclosure Statement to understand what fees are applicable.

Colonial First State (CFS) has an online super projection calculator to help you see how your super might look like when you retire.

4. What superannuation investment options does the fund provide?

Did you know as a super fund member, you can choose how your money is invested?

This choice can affect how your balance grows. If you don’t want to make your own decision, your super fund can make a choice for you (called a ‘default’ or ‘automatic’ investment).

Most super funds offer a range of investment options that means you can choose to invest your super according to your goals, values and needs. This is where understanding your risk appetite is important, and considering how long you have until retirement.

² Essential Super automatically invests your super money into a Lifestage investment option designed for your age. As you get older, investment needs change, along with your financial situation and attitude to risk. The Lifestage option recognises this where the investment mix is adjusted over time according to your age.

Types of super investment options

Common investment options include:

Diversified options – provide members with a mix of investments (known as asset types) such as shares, fixed income, property and cash. These options are usually named ‘Growth’, ‘Balanced’ and ‘Conservative’ and these options will have different objectives, asset allocations, risk profiles and recommended investment timeframes
Single-sector options – offer members a more selective approach to investing in specific asset types like shares or property
Sustainable or responsible investing options – these options are managed with an additional screening process around environment, social and governance considerations. For example, the investments may exclude exposure to companies such as tobacco and weapon manufacturing

Some super funds will provide an extensive range of investment choices if you would like a high level of involvement in how your super is invested.

Other than Lifestage options, ²Essential Super offers a select range of investments including Thrive+ Sustainable Growth, a responsible investment option.

5. Does the super fund offer insurance cover?

Insurance in super can be a cost-effective way to make sure you have the protection you need. Super funds often offer life insurance cover options that can be a combination of:

Death cover, also known as life insurance – pays in the event of a terminal illness or death
Total and Permanent Disability (TPD) insurance – offers cover in case you’re injured or ill and may not work again
Income protection insurance – covers some of your lost income if injury or illness means you temporarily can’t work

It’s important to assess whether you want insurance in superannuation as the premiums will be deducted from your super balance, and that the insurance offered suits your needs. Things to consider include the premium amount, eligibility criteria, level of cover you require, waiting periods and exclusions that apply.

Learn more about understanding insurance in super.

6. Where can you get help comparing super funds?

You can find all the information on a particular super fund in the Product Disclosure Statement (PDS) on the fund’s website.

Another way to compare super funds is via the APRA performance test. Under this test, super funds are assessed on performance outcomes against a range of benchmarks. Failure to meet APRA’s testing requirements results in immediate consequences for the fund. You can check your superannuation fund’s performance against the APRA performance test using the ATO’s YourSuper comparison tool.

Explore our super FAQs to learn more about choosing a super fund

Looking to switch your super?

Essential Super is a low fee³ and award-winning super account, available in the CommBank app∧.

Explore Essential Super

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Things you should know

¹This example is illustrative only and does not take into account fees and other charges or risk levels determined by the member.

This is general advice only. It does not take your personal objectives, financial or taxation situation or other needs into account. Before acting, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

²Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (referred to as Colonial First State, CFS, ‘we’, ‘us’ or ‘our’) is the Trustee of Essential Super ABN 56 601 925 435 and the issuer of interests in Essential Super. Essential Super is distributed by the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank). The CFS Group consists of Superannuation and Investments HoldCo Pty Limited ABN 64 644 660 882 (HoldCo) and its subsidiaries, which includes CFS. The Bank holds an interest in the CFS Group through its significant minority interest in HoldCo.

³The fee comparison is for MySuper products. This fee comparison is based on the Lifestage 1965-69 investment option for a member balance of $50,000 and may vary for different age cohorts. The Chant West Super Fund Fee Survey compares the Lifestage option that is closest to 71% growth assets, which is consistent with the average risk and return profile of most non-lifecycle products. Total fees and costs include administration fees and costs, investment fees and costs and net transaction costs on a gross of tax basis. Fund averages are calculated by Chant West on a weighted average basis. This comparison has been prepared by CFS using data sourced from the Chant West Super Fund Fee Survey, effective 30 June 2025 and is based on information provided to Chant West by third parties, that is believed accurate at the time of publication. Fees may change in the future which may affect the outcome of the comparison. Chant West may make adjustments to fees and costs for comparison purposes and therefore data may vary to other published materials. Whilst care has been taken to ensure that the data provided by Chant West is correct, CFS neither warrants, represents nor guarantees the contents of the information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Additional fees may apply. Refer to the PDS and Fees and Investments Reference Guide to find out more.

∧The CommBank app is free to download however your mobile network provider charges you for accessing data on your phone. The CommBank app is available on Android and iOS operating systems (minimum operating system version requirements may apply). Learn more at commbank.com.au/app

This information is issued by CFS and may include general financial product advice but does not consider your individual objectives, financial situation, needs or tax circumstances, and so you should consider the appropriateness of the advice having regard to your circumstances before acting on it. The Target Market Determination (TMD) for Essential Super can be found at cfs.com.au/tmd and includes a description of who the financial product is appropriate for and any conditions on how the product can be distributed to customers. You should read the Product Disclosure Statement (PDS) and the Reference Guides for Essential Super carefully and consider whether the information is appropriate for you before making any decision regarding this product. Download the PDS and Reference Guides at commbank.com.au/essentialsuper-documents or call us on 13 4074 for a copy.

None of the Bank, HoldCo, CFS, nor any of their respective subsidiaries guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in this product is subject to risk, loss of income and capital invested. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries.

The insurance provider is AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIA Australia). AIA Australia is not part of the Commonwealth Bank Group or CFS. Insurance cover is provided to eligible members of Essential Super under policies issued to CFS.

Any information provided by CBA may include general financial product advice but does not consider your individual objectives, financial situation, needs or tax circumstances, and so you should consider the appropriateness of the advice having regard to your circumstances before acting on it. You should read the PDS and the Reference Guides for Essential Super carefully and consider whether the information is appropriate for you before making any decision regarding this product.

This page contains links that will direct you to third-party websites, which are not operated or controlled by the Bank. Any link you make to or from one of the third-party websites on this page will be at your own risk. Any use of a third-party website, including any information you provide on that third-party website will be governed by the terms of that third-party. Any views or opinion expressed on a linked third-party website are those of the third-party and do not necessarily reflect the policy or position of the Bank. No liability is accepted by the Bank, its related entities, agents and employees for any loss arising from your access of, or use of, any linked third-party website.