Have I got the right super fund?
Written and accurate as at: Aug 19, 2025 Current Stats & Facts
There are three types of super fund: Industry Funds, Retail Funds and Self-Managed Super Funds (SMSF’s). It’s not like one type is better than the other, it’s which one suits your stage of life, current financial situation and where you’re headed financially in the future.
Industry Super funds are where most people start out when joining the workforce. Over the last 10 years, the government have forced those with higher fees and lower returns to amalgamate with better options and we’re down to about 60 Australia wide nowadays. The biggest funds like Australian Super, ART and HostPlus are reasonably well run and offer decent returns with competitive fees. Many financial planners use these where appropriate, which is often for lower balance clients earlier in their working life where the person doesn’t want much choice and control of how their money is invested. These are a pooled investment structure with other members and generally offer some basic personal insurances for Death, Total & Permanent Disability and maybe Income Protection.
Retail super funds, as the name suggests, are where you chose to buy a super fund from a product provider. This is usually done with the advice of a Financial Planner who has assessed your financial position and goals to help make the choice for your situation. Retail funds range from very old products that should be upgraded to new modern super Wrap style accounts. These products can Wrap around a huge choice of investments and insurance products and underlying investments are held individually in your account rather than pooled. The largest providers here are the big banks like Macquarie or Colonial First State or BT. These funds usually suit larger balances and those who want more control over their investments and particularly young families that need a full suite of customised personal insurances that work in with their super.
SMSF’s are where you pay a firm to set you up your own personal super fund and do the administration and tax work each year. These are often set up and administered by accountants and there are higher fees that come with this. Generally, they only suit either very high balances over $1,000,000 or people whose situation warrants ultimate investment choice. These are the only style of super product that allow direct property investment. This can be suitable for self-employed people who own their business premises or very high balance clients who can buy a direct property and still have enough left in super to remain diversified across shares, fixed interest and cash.
With so much choice it all comes down to your personal situation and what you need from a super fund. Having a SMSF might sound trendy at the BBQ but in the wrong situation it can be a disastrous choice for your financial future.
If you think you could benefit from a discussion with a Financial Planner, give us a call on 1300 857 359 or visit www.eclipsefp.com.au There’s no obligation, the first meeting is complimentary and all fees are spelled out clearly in advance.
