How do I choose a default superannuation fund for my employees?

As an employer in Australia, you’re responsible for choosing a default superannuation fund for your employees if they don’t nominate their own. This decision plays a significant role in their retirement savings, so it’s important to get it right. Here’s a guide to help you navigate the process:

Understanding the Options:

Choosing Your Default Fund:

There are key criteria to consider when selecting your default super fund:

  • Compliance: The fund must be a registered MySuper product with the Australian Prudential Regulation Authority (APRA) MySuper products are designed to be low-cost and easy to understand.
  • Investment Performance: Research the fund’s historical performance and investment strategy. Look for a fund with a strong track record of delivering returns for its members.
  • Fees and Charges: Compare the fees charged by different funds, including administration fees, investment fees, and insurance premiums. Lower fees can significantly impact your employees’ long-term savings.
  • Investment Options: Consider the range of investment options offered by the fund. This allows employees to choose an investment strategy that aligns with their risk tolerance and retirement goals.
  • Industry Focus: If yours is a specific industry, some super funds might cater to your sector and understand its unique needs.

Additional Considerations:

By following these guidelines and conducting thorough research, you can choose a default superannuation fund that benefits your employees and helps them achieve a secure retirement. Remember, consulting with a financial advisor can offer further guidance tailored to your specific circumstances.


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