Aussies stuck in these super funds may be missing out on thousands of dollars in their retirement savings.
The Australian Prudential Regulation Authority (APRA) has revealed which superannuation funds have failed its performance test, with four of the five failing for the second time.
APRA’s MySuper performance test assessed 69 MySuper products with at least five years of performance history against an objective benchmark that assessed two components: investment performance, and fees and costs.
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Five products failed to meet the benchmark this year, including four that failed for the second time. A further five products that failed last year’s performance test passed this year.
APRA member Margaret Cole said the overall results highlighted the improved outcomes that had been achieved for superannuation members over the past 12 months.
“Pleasingly, almost 96 per cent of MySuper superannuation members are now in a performing MySuper product, equating to 13.1 million member accounts,” Cole said.
“Equally positive is that the performance test has contributed to over 5.1 million MySuper members - just over 38 per cent - now paying lower fees than they were last year.”
Trustees of the product that failed for the first time will notify their members of the result by September 28, 2022.
The four products that failed the test for a second time are now closed to new members. Of those four products, three have made plans to exit the industry.
Cole said plans were well underway for the more than 500,000 members of those three products to transfer to new MySuper products before the 2023 performance test.
“APRA will be engaging with these trustees to ensure that members achieve better outcomes as quickly and safely as possible,” she said.
In 2021, 13 MySuper products failed the test. Four have since exited.
5 worst - performing super funds
If you are in one of these funds you should consider switching.
Here are the five worst performers, in no particular order:
Retirement Wrap, Westpac Group Plan MySuper - first time failing
Australian Catholic Superannuation and Retirement Fund, LifetimeOne - second time failing
Energy Industries Superannuation Scheme-Pool A, Balanced MySuper - second time failing
Retirement Wrap, BT Super MySuper - second time failing
AMG Super, AMG Super MySuper - second time failing