For the vast majority of us, our superannuation is essential in terms of preparing for and funding our retirement. And whether that retirement is decades away or just around the corner, it’s important to ensure that you’re paying close attention to how your super fund is performing.

As part of its role in supervising the financial, insurance and superannuation sectors in Australia, The Australian Prudential Regulation Authority (APRA) assesses the performance of MySuper products (those which you are defaulted into unless you actively choose a fund) against benchmarks based on investment performance, as well as fees and costs.

Towards the end of last year, five failed to meet the benchmark.

The following products failed to meet the benchmarks for a second time:

  • The Australian Catholic Superannuation and Retirement Fund LifetimeOne
  • Energy Industries Superannuation Scheme – Pool A: Balanced (MySuper)
  • Retirement Wrap: BT Super MySuper
  • AMG Super: AMG MySuper


One product failed for the first time:

  • Retirement Wrap: Westpac Group Plan MySuper

The four that failed for the second time are now closed to new members, and three – who between them have 500,000 members – have exited the industry.

BT Super’s Retirement Wrap has been merged with Mercer Super, Energy Industries Superannuation Scheme – Pool A has been merged with Cbus Super, while The Australian Catholic Superannuation and Retirement Fund’s LifetimeOne has been merged with UniSuper.

“If you’ve not acted, your super will be transferred to a default MySuper product,” says Ryan Sealey, Financial Adviser at Fennell West.

“If you’ve been affected, you’ll have received a letter informing you that you need to move your super and by a certain date, it’ll be moved to the successor fund.”

Making sure your super is in the right place

For many people, the news that their superfund has been underperforming will have come as a surprise – and that underperformance can have a significant impact on your retirement.

“It really pays to keep a close eye on your super and make sure it’s being actively managed,” says Ryan.

“Regardless of how far away from retirement you are, having your funds with an underperforming fund can have a major impact on your retirement, so it’s important to make strategic decisions with your goals in mind.”

Out of the 559,000 that have been affected by their MySuper product failing for a second time, a large portion has been moved to the default successor fund.

“If you haven’t made a decision in the past about your super, have found out you have been in an underperforming fund for a number of years and now it’s being moved to another fund by default without your input, maybe now is the time to actively make some decisions about your super,” says Ryan.

“The right move will depend on a number of factors, including how long it is until you plan to retire, your goals and your current balance – and a professional adviser can help you make an informed decision.”

If you’ve been affected by your superfund underperforming or would like advice on maximising your retirement savings, speak to one of the team at Fennell West, who can work with you to ensure you’re on track to meet your retirement goals.