CANBERRA, AAP – The first annual performance results for MySuper products have been released as the federal government tries to reduce fees and push dud funds out of the market.
The data released on Tuesday found $56.2 billion is invested in underperforming products, covering almost 1.1 million superannuation accounts.
Of 76 MySuper products in the survey, almost one-fifth have underperformed.
MySuper funds are a default account for people who do not choose their own superannuation fund when they start work.
Funds which fail the test must notify members and provide them with details of the YourSuper comparison tool so they can be armed with information to make a choice about switching to a different product.
“Products that fail the annual performance test again next year will be closed to new members until their performance improves,” Treasurer Josh Frydenberg said.
Importantly, eight products have exited the market since the performance test was brought in, he said.
The federal government estimates the “your future, your super” changes will save workers $17.9 billion over 10 years.
From next year, the annual performance test will be expanded to a wider range of super products to make sure workers are not robbed of a more comfortable retirement.