The super naming and shaming session
Thirteen superannuation funds have failed the new performance test that assessed 76 of Australia’s 80 MySuper funds. They’re default accounts for people who don’t choose their own super fund when starting a new job. Yesterday, the Australian Prudential Regulation Authority (better known as APRA) said 84% of products passed the test, which is “welcome news”. But the 13 manage $56.2 billion in retirement funds across 1.1 million accounts, and so APRA issued a challenge: “they can urgently make the improvements needed to ensure they pass next year’s test or start planning to transfer their members to a fund that can deliver better outcomes for them.” And if they’re still underperforming next year, they won’t be allowed to take on new members. Scoring a fail were some staff funds for big banks and unions.
WHAT’S THAT ABOUT?
This is part of the Federal Government’s Your Future, Your Super reforms that came into force on 1 July. Just nod… Exposing “dud funds” via an annual performance test that compares fees against financial performance is one of the new things. Superannuation Minister Jane Hume says the idea is to ensure there’s “increasing transparency and accountability” across the sector. As for what the super funds think, the peak body criticised the test because members won’t be told why and by how much their fund flunked out.
SO, NOW I’M THINKING ABOUT MY SUPER…
That’s the spirit… And it’s important because 16 million Aussies with super pay $30 billion a year in fees. As Treasurer Josh Frydenberg likes to point out, that’s more than the $27 billion that households pay for their electricity… The new YourSuper comparison tool that ranks funds by fees and investment returns is a good place to start. There’s also help on the site to consolidate your super if you have more than one account and information about breaking up with your fund to move to a different one. It doesn’t pay to be a super procrastinator, so get on it. Nag over… #SquizShortcut
Image source: iStock
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