The YourSuper comparison tool has launched via MyGov and the Australian Tax Office (ATO) websites, to help compare the performance and fees of MySuper products.
Xavier O’Halloran, Super Consumers Australia director, said this measure might have slipped under the radar during the Your Future, Your Super debate, but its impact would be a game changer in superannuation.
“Empowering consumers with quality decision making tools will level the playing field," O’Halloran said.
“Consumers can now rank funds by net investment returns or fees, which are two very important factors when choosing a fund.
“When the underperformance test results are finalised later in the year, some funds will also be highlighted as having failed to add enough value to people’s retirement savings.”
“This first iteration of the tool is easy to use and compares MySuper products, which are typically low-cost, simple options, which people are defaulted into. A greater pool of products will be included on 1 July, 2022.”
O’Halloran said they would monitor how people used the tool as it was rolled out and using any learnings to recommend improvements.
“There are important factors like risk and bundled insurance which we need to find simpler ways to talk to people about,” O’Halloran said.
“At the moment the industry does a very poor job of this, so it will be an important research focus going forward.”