Compare Super Funds

1. How does superannuation work?

Your employer must pay a set percentage of your ordinary time earnings into a super fund on top of your annual salary if you work in Australia and meet the minimum requirements to receive the Superannuation Guarantee. If you do meet these requirements, you must be paid super whether you work casually, part-time, full-time or as a contractor, and even if you are a temporary resident. Money held in a superannuation fund is invested in a range of assets by your fund. Most funds give members the option of choosing how their savings are invested, so it could be helpful to learn more about your super investment options.

2. What do I need to know about superannuation in 2021?

The super industry is undergoing a number of changes in 2021. For example, as of 1 July the super guarantee rate and the concessional and non-concessional contributions caps have all increased. In addition, the Your Super, Your Future reforms mean that from November, workers can have their super account follow them by default when they change jobs.

If you are comparing super funds in 2021, Canstar Research has released its latest Most Satisfied Customers – Super Fund Award and its Superannuation Star Ratings and Awards. You can also view the top-performing super funds on Canstar’s database.

3. Why open a super account?

You may get your first super account when you get your first job. Some employers have a super fund or corporate plan in a broader fund only available to employees. You may also choose to open a new super account if you’re starting a new job, or if you want to switch providers and take advantage of lower fees, or choose a fund with a better track record for investment performance. If you open a new super account, you generally have the option of rolling money from your other accounts into the new one. You can compare super funds and see top-performing super funds on Canstar, with our Superannuation Star Ratings and Award research also available as a resource to help you compare options.

4. How do you start a super account?

Most super funds have an easy online joining process to open a super account. Consider factors such as the fees charged, whether the insurance offering is suitable for you and education and the financial advice available. After you choose a super fund, it’s often as easy as searching for an online join tool on a fund’s website and following the prompts. If you can, have your tax file number (TFN) handy. Letting your super fund know your TFN means it can accept your super contributions and charge the appropriate tax rates that generally apply to super contributions. You could also open a new account by choosing your employer’s default super fund when you start a new job, if that fund is right for your needs and retirement goals. You may have been prompted by your bank – in person or online – to open a super account with them, though again you don’t have to choose this option. When you open a super account, you have the option of consolidating existing superannuation accounts. Consider seeking financial advice before making decisions about your retirement savings.

5. Can I pay into my super if I’m not working?

Depending on your age, you can generally pay into your super if you are not working, with voluntary non-concessional superannuation contributions. For example, this could be using money you have in savings. There is a cap on how much you can contribute per person, per financial year without having to pay extra tax. One strategy to build your super balance is contribution splitting, with your spouse making contributions to your account if you earn a low income or are not working. Bear in mind that if you stop making contributions to your super, you may eventually lose any insurance cover your account offers and you will typically still be charged fees.

6. Can I withdraw money from my super?

Some of the most common conditions of release for super, according to the ATO, are:

1. Reaching your preservation age and retiring
2. Reaching your preservation and beginning a transition-to-retirement income stream
3. Ceasing an employment arrangement on or after the age of 60
4. Reaching 65 years of age, regardless of employment status
5. Your death.

There are also ‘special’ conditions for release of super, including if you are either temporarily or permanently unable to work, or are experiencing severe financial or medical hardship. Another special condition of release is designed for those looking to buy their first home.

If you are interested in accessing your super early, there are a few ways you may be able to do so, depending on your circumstances. But, be aware of the costs and risks involved, including COVID-19 superannuation scams.

7. How can I plan for my retirement?

Whether you are thinking about when you should finish working, how much super you may need to retire comfortably in Australia or what super fund is best is best suited to help you get there, your personal circumstances, finances and life goals will influence your plans for retirement. Canstar’s Superannuation and Retirement Planner Calculator can help you estimate how much super you’ll have when you retire, as well as the anticipated gap between your estimated super balance and how much you may need. Please consider whether you need financial advice from a qualified adviser when planning for your retirement.

8. Should I choose life insurance through my super fund?

Choosing insurance through your superannuation fund is a personal decision. You can hold life insurance through your super fund or an external policy – or both. Most super funds offer life insurance, total and permanent disability (TPD) and income protection insurance, with life cover and TPD insurance often automatic. Following a law change in 2020, people aged under 25 no longer receive default life insurance through their super when joining a new fund, unless they work in a dangerous job or write to their fund and request it.

Possible advantages of life insurance through super include that it may be more convenient, as well as cheaper. Paying for insurance through super can be ‘tax-effective’, according to Moneysmart, if insurance is paid using concessional contributions. Disadvantages of life insurance through super include that it may reduce your retirement balance and can provide insufficient coverage in some cases. Trauma insurance is usually not available, your beneficiary may not be guaranteed, and your cover may end if you change funds or stop making contributions. Similarly, there are pros and cons of direct life insurance.

Our Super Fund Star Ratings & Guides

2021 Superannuation Customer Satisfaction Award Results

2021 Superannuation Star Ratings and Award Results

2021 Account Based Pensions Star Ratings and Award Results

Canstar’s Super Contribution Maximiser Calculator

Canstar’s Retirement Planner Calculator

Articles & Guides

What is superannuation in Australia?

How does superannuation work?

What is the tax-free threshold?

How does the Australian Age Pension work?

How much super should I have at my age?

How much super should I have at 30?

How much super should I have at 40?

How much super should I have at 50?

How much super do I need to retire at 60?

What is the Pension Loans Scheme?

6 questions to ask when planning for retirement

Should you have life insurance through super?

Joint super accounts: What are they and can you get one?

Mortgage vs super: Where should you put your extra money? 

Understanding your superannuation fees

How Do You Change Superannuation Funds? 

5 things to know about super if you’re under 25

How to choose your super fund

Early super release: Can I withdraw my super early?

Super: Take care if you’re applying for early release

Low-fee super funds on Canstar’s database

Top-performing super funds on Canstar’s database