A Product Disclosure Statement (PDS) is a legal document that every superannuation fund must provide. It contains the information you need to evaluate a fund — including investment options, fees, insurance, and how to make or withdraw contributions. Here’s how to read it efficiently.
Why the PDS Matters
Most Australians never read their super PDS. But the PDS contains the detail behind the headline claims — including fees that might not be obvious, insurance terms that could affect claims, and investment benchmarks that determine how you assess performance.
Key Sections to Check
1. Investment Options and Objectives
Look for:
- The options available (e.g., High Growth, Balanced, Conservative, Cash, ESG, indexed)
- The stated investment objective for each option (e.g., “CPI + 4% p.a. over rolling 7 years”)
- Asset allocation for each option (% in shares, property, fixed income, alternatives, cash)
- Suggested investment timeframe
What to do: Find the option you are in (or considering) and check whether the objective and asset allocation match your goals and risk tolerance.
2. Fees and Costs
This section must (by law) include:
- Administration fee (fixed and/or percentage)
- Investment fee (by option)
- Indirect cost ratio (ICR)
- Buy/sell spread
- Switching fee
- Performance fee (if applicable)
- Transaction fee (if any)
- Advice fee arrangements
What to do: Add up the ongoing fees for your chosen option on your balance. Compare against other funds using the same calculation.
3. Insurance
Super funds typically offer:
- Death cover (life insurance)
- TPD cover (total and permanent disability)
- Income protection (temporary incapacity)
The PDS or a separate Insurance Guide will show:
- Default cover amounts (for your age)
- Premium structure (unit-based or fixed dollar)
- Definitions (especially the TPD definition — “any occupation” vs “own occupation”)
- Exclusions (pre-existing conditions, specific activities)
What to do: Check the default cover amount vs your actual needs. Review the exclusions.
4. How to Join and Contribute
Check:
- Minimum contribution requirements
- Accepted contribution types (SG, salary sacrifice, personal, spouse)
- How to change investment options
- How to nominate beneficiaries
5. Accessing Your Super
Look for:
- Conditions of release
- How to withdraw (lump sum or pension)
- Pension phase options available within the fund
- Minimum drawdown requirements (pension phase)
6. Other Important Disclosures
- Trustee information: Who manages the fund
- Complaints process: How to make a complaint (AFCA information)
- Significant event notices: How the fund notifies you of changes
- Privacy policy: What information is collected and how it’s used
Supplementary Documents
The PDS often refers to or is accompanied by:
- Investment Guide: Detailed description of each investment option
- Insurance Guide: Full insurance terms and conditions
- Target Market Determination (TMD): Who the product is appropriate for
- Annual Report: Fund’s investment performance and financial position
What the PDS Won’t Tell You
- Actual historical net returns (relative to peers) — use APRA heatmap or YourSuper for this
- Member satisfaction — consider other sources
- Adviser fees charged to other members — disclosed separately at the fund level
How to Find a Fund’s PDS
- Go to the fund’s website and look for “Forms & Documents” or “Disclosure Documents”
- Use the search term “[fund name] PDS [year]”
- The PDS on file with ASIC is at moneysmart.gov.au → “Financial guidance for products” section
For more: How Are Super Fees Calculated?, How to Read Your Super Statement, MySuper Dashboard Guide, Insurance in Super. For advice on your situation, speak with a licensed financial adviser via MoneySmart.