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In this video we look at the ATO’s new comparison tool for MySuper funds. In short it’s an OK start, but it’s not providing enough useful insights yet.
Hi, it’s Robert from SuperGuide, I’m just going to walk you through the ATO’s new YourSuper comparison tool, which was just released a couple of weeks ago. When you first go there, it does give you this prompt to log in with MyGov. That’s so it can pre-fill all of the comparison with your age and your super balance. But as long as you know those things, you don’t really need to do that. It gives you the same results anyway.
So what we’re seeing here is we’ve got 80 super funds. These are just MySuper products. These aren’t the full superannuation fund universe, but these are the low-cost default funds that account for about 30% of all super assets. These results are to the end of March this year in terms of performance. Now, by default, what it’s doing is showing us a balance of $50,000. This is the standard amount that super funds are compared on.
If we press this filter button, we can put in our own age. Let’s say we’re 50 and we can put in whatever super balance we like. Let’s say $150,000. For this demo, I’m going to exclude restricted funds, which are funds that aren’t available to everyone.
So the good thing about entering your balance is that it will show you the actual fees for that particular balance because all super funds will have slightly different fee structures. So you can’t assume the ones that are cheapest for $50,000 will be cheapest at every balance.
And the benefit of adding your age is that it will also select lifecycle super funds that are designed for a particular age group. So, for instance, here we’ve got this super fund that is designed for people who were born between 1969 and 1973. So that’s the investment strategy is designed for that particular age group.
So with the results that we’ve got here now, so it has narrowed down to about 57 funds. That’s because we’re excluded some restricted funds. We’ve got, obviously, all of the super funds and the product names here. If you click these, it will open up the particular super fund website. This is the elephant in the room or not in the room, the investment performance. Now, all of these are not assessed and these won’t change until around September when they have done the full assessment, then presumably that’s with the end of this just past financial year.
What this will tell us after September is which funds are underperforming. It will be a quick and easy way to discover those. At the moment, you can still do things like sort based on the net return. So we can see which super funds have the lowest performance over that period. But they haven’t been strictly assessed for their investment performance at this stage.
What else can we do? We can shortlist various products as well to compare them side by side with others. So let’s, for argument’s sake, just select these first four. And down at the bottom we have this option to compare and it will give us slightly more information in terms of it gives us returns over other periods. It shows us the annual fees side by side, it shows us the investment strategy as well. And we can click through to their super fund websites. Once we’re in this comparison, if we want to go back to the lists, if I just click one of these, we can go. That seems to be the easiest way to go back to the results.
So as it is, it doesn’t really give you enough information to really pick the best fund for you. Obviously, there’s a lot of information that’s not covered here, a big one being insurance, and other features as well. But it should in time highlight which super funds are not performing. So if your own super fund is flagged as not performing or underperforming, then that should give you the nudge that you need to compare some other super funds that might be better for you. But over time, hopefully, the comparison functionality should be expanded and it will help more people pick the super fund that’s better for them.
So that’s just a quick overview. I hope you found that useful. So after September, we’ll come back and do another review and we’ll see how the tool functions then.