UPDATE: The Australian Prudential Regulation Authority (APRA) has just released its 2025 superannuation performance test results, revealing a significant drop in underperforming funds. Out of 563 tested products, only seven have failed, a dramatic decrease from 37 last year, indicating a major shift in the superannuation landscape.
This performance test, first introduced in 2021, is crucial for Australian consumers. It aims to identify poorly performing super funds and guide members towards better options. With approximately 1 million Australians previously stuck in failing funds, the results show a commendable reduction to just 8,500 today. This transformation reflects the test’s effectiveness as a powerful consumer protection tool.
The latest data comes as many Australians remain unaware of the implications of these results. The “comprehensive product performance package” might not seem engaging, but it is critical for anyone relying on their superannuation for retirement. The test focuses primarily on MySuper default funds, which are the standard options provided by employers.
In a bid to push the superannuation industry towards better performance, APRA’s stringent measures have made a significant impact. Funds that fail the test are required to inform their members, and a second consecutive failure results in the fund being closed to new entrants. This creates pressure for super funds to maintain high performance and transparency.
In 2022, the scope of the performance test expanded to include all pre-mixed investment options, such as “balanced,” “high growth,” and “sustainable balanced” funds. This means that more Australians are now protected from subpar investment options.
The APRA report underscores a critical moment for superannuation in Australia, highlighting a greater awareness of fund performance among consumers. The drastic reduction in underperforming funds demonstrates that the industry is responding to consumer needs and regulatory pressures.
As the superannuation landscape continues to evolve, Australians are encouraged to review their super funds and stay informed about performance outcomes. The next steps include monitoring the performance of these funds and ensuring they align with individual retirement goals.
Stay tuned for further updates as this story develops, and share this information to help others understand the importance of superannuation performance in securing their financial future.
