Worst Super Funds

Sticking with a poor-performing super fund can lead you to retire with hundreds of thousands of dollars less. Each year, the Australian Prudential Regulation Authority (APRA) analyses the super funds in the market and names and shames those that have performed the worst.

If you're in one of these funds, you're encouraged to compare super funds and switch to another fund with better returns.

Worst super funds for 2022

Here are the 5 worst-performing super funds in 2022, according to APRA:

• AMG Super - MySuper
• Australian Catholic Superannuation - LifetimeOne
• Energy Industries Superannuation Scheme - Balanced MySuper
• BT Super - MySuper
• Westpac Group Plan - MySuper

Of these 5 funds, Westpac failed the performance test for the first time in 2022 while the remaining 4 funds have failed for 2 years in a row. The 4 funds that have failed 2 years in a row are now closed to new members, and existing members will be transferred to another MySuper product.

Switch to a better super fund today

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Name	Last 1 year performance (p.a.)	Last 3 year performance (p.a.)	Last 5 year performance (p.a.)	Last 10 year performance (p.a.)	Fees on $50k balance (p.a.)
Promoted Promoted Aware Super Future Saver - MySuper Lifecycle High Growth Industry fund Lifestage Higher risk	Last 1 year performance (p.a.) +11.31%	Last 3 year performance (p.a.) +6.14%	Last 5 year performance (p.a.) +8.28%	Last 10 year performance (p.a.) +8.93%	Fees on $50k balance (p.a.) $497	Go to siteMore Info Compare	A lifecycle super fund weighted heavily towards high growth assets, targeted to people 55 and under.
Promoted Promoted Vanguard Super SaveSmart - High Growth Higher risk	Last 1 year performance (p.a.) +14.3%	Last 3 year performance (p.a.) N/A	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $270	Go to siteMore Info Compare	This fund aims for higher growth over the long term. It invests heavily in Australian and international shares, including a small amount of exposure to emerging markets shares.
Promoted Promoted Virgin Money Super - LifeStage Tracker Lifestage	Last 1 year performance (p.a.) +13.87%	Last 3 year performance (p.a.) +6.55%	Last 5 year performance (p.a.) +7.82%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $363	Go to siteMore Info Compare	Your fund's asset allocations adjust automatically as you age, offering you more growth opportunity when you're younger and lower-risk investments as you approach retirement.
Aware Super Future Saver - MySuper Lifecycle High Growth Industry fundLifestageHigher risk	Last 1 year performance (p.a.) +11.31%	Last 3 year performance (p.a.) +6.14%	Last 5 year performance (p.a.) +8.28%	Last 10 year performance (p.a.) +8.93%	Fees on $50k balance (p.a.) $497	Go to siteMore Info Compare
Vanguard Super SaveSmart - High Growth Higher risk	Last 1 year performance (p.a.) +14.3%	Last 3 year performance (p.a.) N/A	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $270	Go to siteMore Info Compare
Virgin Money Super - LifeStage Tracker Lifestage	Last 1 year performance (p.a.) +13.87%	Last 3 year performance (p.a.) +6.55%	Last 5 year performance (p.a.) +7.82%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $363	Go to siteMore Info Compare
Australian Retirement Trust - High Growth Industry fundHigher risk	Last 1 year performance (p.a.) +12%	Last 3 year performance (p.a.) +8.02%	Last 5 year performance (p.a.) +9.01%	Last 10 year performance (p.a.) +9.4%	Fees on $50k balance (p.a.) $517	Go to siteMore Info Compare
Spaceship - GrowthX Higher risk	Last 1 year performance (p.a.) +17.89%	Last 3 year performance (p.a.) +5.89%	Last 5 year performance (p.a.) +10.56%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $711	Go to siteMore Info Compare
Hostplus Indexed Balanced Industry fund	Last 1 year performance (p.a.) +12.94%	Last 3 year performance (p.a.) +6.22%	Last 5 year performance (p.a.) +7.39%	Last 10 year performance (p.a.) +7.83%	Fees on $50k balance (p.a.) $153	Go to siteMore Info Compare
AMP Super MySuper Lifestages 1970s Lifestage	Last 1 year performance (p.a.) +11.88%	Last 3 year performance (p.a.) +5.66%	Last 5 year performance (p.a.) +7.02%	Last 10 year performance (p.a.) +7.68%	Fees on $50k balance (p.a.) $506	Go to siteMore Info Compare
Australian Ethical Super International Shares Green CompanyEthicalHigher risk	Last 1 year performance (p.a.) +19.88%	Last 3 year performance (p.a.) +8.32%	Last 5 year performance (p.a.) +10.65%	Last 10 year performance (p.a.) +10.23%	Fees on $50k balance (p.a.) $643	Go to siteMore Info Compare
CFS FC MySuper - Lifestage 1985-89 LifestageHigher risk	Last 1 year performance (p.a.) +15.44%	Last 3 year performance (p.a.) +6.66%	Last 5 year performance (p.a.) +7.47%	Last 10 year performance (p.a.) +7.83%	Fees on $50k balance (p.a.) $375	Go to siteMore Info Compare
UniSuper - Sustainable High Growth Finder AwardIndustry fundEthicalHigher risk	Last 1 year performance (p.a.) +16.11%	Last 3 year performance (p.a.) +5.45%	Last 5 year performance (p.a.) +9.15%	Last 10 year performance (p.a.) +10.01%	Fees on $50k balance (p.a.) $321	Go to siteMore Info Compare
HESTA Balanced Growth Industry fund	Last 1 year performance (p.a.) +9.69%	Last 3 year performance (p.a.) +5.83%	Last 5 year performance (p.a.) +7.02%	Last 10 year performance (p.a.) +7.67%	Fees on $50k balance (p.a.) $472	Go to siteMore Info Compare
Vanguard Super SaveSmart - International Shares Higher risk	Last 1 year performance (p.a.) +20.29%	Last 3 year performance (p.a.) N/A	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $280	Go to siteMore Info Compare
CFS FC MySuper - Lifestage 1975-79 Lifestage	Last 1 year performance (p.a.) +14.95%	Last 3 year performance (p.a.) +6.37%	Last 5 year performance (p.a.) +7.23%	Last 10 year performance (p.a.) +7.71%	Fees on $50k balance (p.a.) $380	Go to siteMore Info Compare
Australian Retirement Trust - International Shares Index (unhedged) Finder AwardIndustry fundIndexed investmentHigher risk	Last 1 year performance (p.a.) +18.92%	Last 3 year performance (p.a.) +9.67%	Last 5 year performance (p.a.) +11.86%	Last 10 year performance (p.a.) +12.55%	Fees on $50k balance (p.a.) $192	Go to siteMore Info Compare
Hostplus Australian Shares Industry fundHigher risk	Last 1 year performance (p.a.) +10.4%	Last 3 year performance (p.a.) +7.33%	Last 5 year performance (p.a.) +8.35%	Last 10 year performance (p.a.) +9.05%	Fees on $50k balance (p.a.) $368	Go to siteMore Info Compare
Vanguard MySuper - Lifecycle Age 47 and under Lifestage	Last 1 year performance (p.a.) +14.29%	Last 3 year performance (p.a.) N/A	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $280	Go to siteMore Info Compare

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The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.

*Past performance data and fee data is for the period ending July 2024

Why are these super funds the worst?

These funds have been determined the worst-performing funds by industry regulator APRA as part of its annual analysis of super returns. These 5 funds all delivered poor investment returns for members.

As part of APRA's Your Future, Your Super legislation, which aims to improve retirement outcomes for Australians, the regulator will be looking at how super funds are performing each year. It'll publicly name the worst-performing funds annually, so members have an opportunity to switch to a better-performing fund.

The first year APRA released this list was 2021, and the results are listed below.

• Failing super funds in 2021

  See the list of funds to fail the performance test last year below:

  • AMG Super - MySuper
  • ASGARD Independence Plan Division Two - Employee MySuper
  • Australian Catholic Superannuation - LifetimeOne
  • AvSuper - Growth (MySuper)
  • BOC Gases Superannuation Fund - MySuper
  • Christian Super - MyEthical Super
  • Colonial First State - FirstChoice Superannuation Trust
  • Commonwealth Bank Group Super - Accumulate Plus Balanced
  • Energy Industries Superannuation Scheme - Balanced MySuper
  • Labour Union Co-Operative Retirement Fund - MySuper Balanced
  • Maritime Super - MySuper
  • BT Super - MySuper
  • The Victorian Independent Schools Superannuation Fund - Balanced

How did APRA select the worst super funds?

APRA looked at the performance returns on 69 MySuper products for its 2022 analysis. It assessed the funds that had at least 5 years' worth of performance data and excluded the few new funds that haven't yet had enough time to show medium- to long-term returns.

MySuper funds are the default products offered by super funds when you join. They're designed to be a simple, diversified investment option with fees that aren't too high or too complex and to be suitable for the majority of members regardless of age. The reason APRA only looks at MySuper products when putting together its list of worst funds is that these products are where the vast majority of consumers have their super invested.

While the majority of funds APRA looked at (95.6%) met or exceeded their performance objective, 5 funds failed to meet their benchmark performance and under-performed. These 5 funds make up the list of the worst super funds above.

How to tell if you're in a bad super fund

If you're not with one of the 5 funds listed above, it doesn't necessarily mean you're not with a bad super fund. It's still important to compare super funds to make sure you're not getting stung with high fees and poor returns.

There are 2 main ways to tell if it might be time to switch:

Your fund charges high fees: If you're paying annual fees that are 1.5-2% of your account balance, this is considered to be high. For example, if you've got a balance of $30,000 and your annual fees are $600, this is a fee of 2% which is higher than many funds in the market.

Your fund delivers poor performance: Many of the top-performing super funds achieve average returns over 9% p.a. If your fund is delivering returns much lower than this, for example 4% or 5% p.a., this is quite low in comparison. However, the type of fund you're with will impact investment returns. If you're in a more conservative portfolio, you can expect lower returns over the long term.

How do the worst super funds compare to the best funds?

Being in a poor-performing super fund can have a huge impact on your super balance when you retire. It might not seem like a big difference early on, but the more your super grows and benefits from compound growth over your working life, the bigger the difference will be.

Example: Poor-performing fund vs high-performing fund

Let's say you're 25 years old, earning $80,000 a year and have a super balance of $20,000. Assuming your income stays the same until you retire, here's the super balance you'd have at retirement with different performing super funds, according to MoneySmart's calculator.

As you can see, switching from a super fund that earns 5% p.a. to one that earns 9% p.a. can help you retire with more than double the amount of super. That's a lot of extra money for simply switching from a poor-performing fund.

Remember, past performance doesn't guarantee future performance. When looking at a fund's performance, make sure you look at long-term returns (over 10+ years) instead of the most recent year's return on its own.

What to do if you're in a bad super fund

If you're with one of the worst-performing super funds that APRA names on its list, you'll receive an email or letter from your super fund. The fund is required to tell you it has failed the performance test and encourage you to compare super funds.

According to APRA, a few months after it published its 2021 list of worst super funds, only 7% of members in one of those funds had actually switched their super. APRA said this was concerning, as it meant people would retire with less.

If you're in a bad super fund you should do the following:

1. Look at how your fund has performed over the long term (5-10 years) and how this compares with others in the market.
2. Consider switching to a better performing super fund (it's easier than you think to change super funds).
3. Make sure you properly close your old fund and consolidate any other funds you have into your new fund.
4. Give your employer your new fund account details so you can start receiving your super payments into your new fund.

Even if your super fund isn't named as one of APRA's worst-performing funds, it's never a bad time to compare how your fund is doing against others.

Frequently Asked Questions

• Have all super funds lost money?

  Not all super funds have lost money, but some may have experienced negative returns during periods of market volatility, such as during economic downturns or financial crises. Super funds with high exposure to equities or other volatile assets might see losses in such periods, while more conservative funds with higher allocations to bonds or cash might perform better.

• Which are the failing super funds in Australia?

  Failing super funds in Australia are typically those that consistently underperform, have high fees, or fail the annual performance test conducted by the Australian Prudential Regulation Authority (APRA). Super funds that fail this test may be forced to notify their members, and consistent underperformance could lead to fund closure. APRA publishes a list of underperforming funds annually, so it's important to check these reports and consider switching to a better-performing fund.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 626 Finder guides across topics including:

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