Most Australians spend more time picking a coffee order than reviewing their super fund. That indifference is expensive. On a $100,000 balance, a 1% underperformance gap compounds to roughly $10,000 less in retirement over 10 years. On $300,000, a 1.5% gap over 25 years means a $114,000 shortfall. The maths are unforgiving.
The good news: switching is straightforward. The trap that catches people out is insurance. Close your old fund before securing cover in the new one and you could lose life or income protection cover you cannot get back -- especially if your health has changed. This guide walks through how to switch safely.
APRA's 2025 annual performance test assessed all 52 MySuper products, and all passed. But APRA's data also shows that more than 40% of platform trustee-directed products show significant investment underperformance. If your fund is in that group, you are subsidising that gap with your retirement savings.
For context on what good looks like: the top-performing MySuper balanced options over the 10 years to June 2024 were Hostplus Balanced at 8.3% per year, AustralianSuper Balanced at 8.2%, and UniSuper Balanced at 8.1% (source: APRA fund-level data). Industry funds typically charge 0.55% to 0.75% in annual fees. Many retail, bank-owned funds charge 1.0% to 1.8%. That fee gap alone, before any performance difference, adds up materially over decades.
Also worth knowing: as of June 2024, Australians had $17.8 billion in lost or unclaimed super sitting with the ATO. If you have changed jobs, moved house, or just lost track of an old fund, there may be money sitting there with your name on it. You can search via MyGov.
Go to ato.gov.au/super or search "[your fund name] APRA performance test". APRA publishes results annually. If your fund's MySuper product has failed a test in recent years, that is a clear prompt to look elsewhere. Even if it passed, the performance data lets you compare your fund's 10-year return against the benchmarks above.
Find your most recent annual super statement. Look for the total fee percentage charged that year. If it is above 1%, investigate whether you are getting value for it. Most Australians in default MySuper options are not. A fee reduction from 1.5% to 0.65% on a $200,000 balance saves roughly $1,700 per year before compounding.
This is the step most people skip, and the one that matters most. Your annual statement will list any insurance held through the fund. Common types are life cover (also called death cover), total and permanent disability (TPD), and income protection.
If you have any of these, do not close your fund until you have read the rest of this guide carefully. Closing the fund cancels the insurance automatically. If you have a pre-existing health condition, you may not qualify for the same cover in a new fund. The insurance you have inside super was often accepted without detailed medical underwriting when you first joined. That window closes when the policy ends.
Before you do anything else with your current fund, join the new one. Most funds have an online application that takes about 10 minutes. You will need your Tax File Number. Once your membership is confirmed, you will receive a member number and account details.
Log into your new fund's member portal or call their helpline and check what insurance is available to you. Some funds offer automatic default cover that activates once your account receives a contribution or rollover. Others require you to opt in, and some have waiting periods before cover begins.
If you currently have insurance in your old fund, do not close that fund until equivalent cover is active in the new one. If you are not sure whether the new fund's cover is adequate, this is the point at which speaking to a licensed financial adviser is worth considering -- particularly if you have dependants or a health history that could affect underwriting.
Once your new fund membership is active and your insurance situation is sorted, log into MyGov at my.gov.au and link your ATO account if you have not already. Under the ATO section, you will find a super consolidation tool that shows all your super accounts, including any lost super held by the ATO. You can initiate a rollover directly from this tool. The transfer typically takes three to five business days.
If you have multiple accounts, consolidating them into one almost always makes sense. Multiple accounts mean multiple sets of fees and potentially duplicate insurance premiums. The only exception is if one of those accounts holds insurance cover you cannot replicate elsewhere.
Wait for your new fund to confirm your balance has arrived before doing anything with the old account. Once the transfer is complete and your insurance in the new fund is active, you can formally close the old account. Most funds let you do this online or by calling their member services line.
Keep the closure confirmation for your records. Update your employer with your new fund details so future contributions go to the right place.
Check your fund's APRA result and fees. Check whether you have insurance inside super. Join the new fund and secure cover there first. Then use the ATO's MyGov tool to consolidate. Close the old account last, not first. Done in the right order, switching takes a few weeks and zero complexity. Done in the wrong order, you could be uninsured without realising it.
See how your super fund stacks up on fees and performance in under two minutes. No sign-up required.
Check Your Super Fund Free