A type of super account for people who don’t want to choose a super fund
What is MySuper?
Many super funds have started to offer MySuper accounts. These are accounts that have:
- simple features
- basic, comparable fees (and restrictions on the type of fees you can be charged)
- a single investment option for everybody, or a single investment option based on the stage in life you are at
- a minimum level of insurance (basic Death and Total and Permanent Disablement [TPD] insurance cover).
MySuper accounts are designed to be simple for people to understand and to help people compare funds more easily, based on a few important criteria. They are meant to make sure people do not pay for any features they don’t want or use.
Only super funds with a MySuper licence are able to accept default super contributions into their MySuper product. This happens when you don’t choose a super fund yourself (or, from 1 November 2021, you don’t have a current ‘stapled’ super fund) and just go with the super fund your employer choses for you.
Am I affected?
If you haven't nominated a super fund to your employer (and from 1 November 2021, if you don’t have a current ‘stapled’ super fund or it cannot accept contributions), and so you have just gone with the fund your employer chose for you, then you don't have to do anything. Your future super contributions will be paid into a MySuper account that your employer has chosen.
If you have nominated a super fund (or, from 1 November 2021, you have a current ‘stapled’ super fund and it is able to accept contributions for you), then you won’t be affected.
Is MySuper right for me?
MySuper is designed for fund members who aren’t actively involved with their super. It is a ‘one-size fits all’, ‘no-frills’ account and therefore may not be the best solution for everyone. Things to think about are:
- What is the right level of insurance for you?
- What is the level of investment risk you want?
- What are the investment returns you would like?
- What are the fees?
For people who want their superannuation to be more tailored to their needs, a non-MySuper - or ‘choice’ - account may be better for them.
To see if MySuper is right for you or to find out more about MySuper, contact your super fund or financial adviser.