Super hits $3.3 trillion despite dud funds

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The minister for superannuation says it's easier than ever to compare funds and get information about rip-offs from fees or dud performance.

The super industry has hit the dizzying heights of $3.3 trillion, Jane Hume told parliament on Tuesday.

"It is bigger than GDP. It is bigger than the ASX. It has doubled in size since the coalition came to government."

Australians still pay $30 billion a year on super fees, more than on energy bills, but a new tax office portal is providing information to help people find a different product.

"We inherited a system that was riddled with flaws," Senator Hume said.

The first annual performance results for MySuper products show $56.2 billion is invested in underperforming products, covering almost 1.1 million individual superannuation accounts.

MySuper funds are a default account for people who do not choose their own fund when they start work.

The Association of Superannuation Funds of Australia has urged consumers to be careful about how they interpret the results of the "confusing" performance test and to think carefully before making important decisions.

"Stamping a product with a fail, without any context, is the fastest way to spark fear and confusion among members," ASFA chief Martin Fahy said.

"Among these so-called 'underperformers' we have products which have doubled people's investments over the past decade."

Of 76 MySuper products in the survey, almost one-fifth have underperformed.

These account holders will now receive a letter and information about the YourSuper comparison tool to help them switch to a different product.

"Labor is concerned this could create a run on funds and a disorderly transition of those accounts into better performing funds," spokesman Stephen Jones said.

Products that fail the annual performance test again next year will be closed to new members until their performance improves.

Chipping away at inefficiencies, the government has capped fees on low balances, removed unnecessary insurance premiums, eliminated unintended multiple accounts, reunited lost super with rightful owners, and banned exit fees.

Senator Hume says the "your future, your super" changes will save workers $17.9 billion over 10 years.

More than 375,000 Australians have accessed the comparison tool since July 1.

Labor is concerned there are millions more accounts in underperforming retail funds that regulators have not been asked to assess.

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