Changing your super investment option is one of the most straightforward things you can do with your super — most funds allow it online in a few minutes. But deciding whether to switch, and what to switch to, requires more thought than the mechanics of making the change.
This guide covers how to make the switch, what to check before you do, and the common mistakes that cost members money.
Before You Switch — What to Consider
1. Is This a Long-Term Decision or a Reaction to Markets?
The most common and costly mistake in super investing is switching to a defensive option after markets fall, then switching back to growth after markets recover. This pattern — selling low and buying high — locks in losses and misses the recovery.
If you’re considering a switch because you’ve seen your balance drop in recent months, take time to reflect:
- How long until you actually need this money?
- Has your risk tolerance genuinely changed, or are you reacting to short-term noise?
- Would you make the same decision if markets had not fallen?
If your time horizon is more than 5–7 years, riding out a market cycle in a growth option has historically produced better outcomes than switching to cash and waiting for stability.
2. Does Your Investment Option Still Match Your Stage of Life?
Switching is appropriate when your circumstances have genuinely changed:
- You’re now within 5 years of retirement and want to reduce volatility risk
- You were previously in a lifecycle MySuper product that has de-risked more aggressively than you wanted
- You’ve researched lower-fee options in your fund and want to switch to reduce cost drag
- Your fund now offers an ethical/ESG option that aligns with your values
- You’re consolidating multiple funds and want a consistent strategy
These are thoughtful, long-term reasons to switch — distinct from reacting to short-term market movements.
3. Check Your Insurance
Some automatic insurance cover in super is linked to your current investment option or MySuper product. Before switching, confirm:
- Does your insurance continue under the new option, at the same terms?
- Does the premium change?
- Are there any conditions attached to maintaining cover after a switch?
Review your fund’s Product Disclosure Statement (PDS) or contact the fund directly before switching if insurance cover is important to you.
4. Check for Any Switch Fees or Spreads
Most super funds allow free switches between investment options — but some have:
- A buy/sell spread — a small percentage cost applied when units are bought or sold during a switch (typically 0.05–0.20%)
- A limit on free switches per year (e.g. two free switches per year, with a fee for additional switches)
Check your fund’s PDS or the relevant investment option fact sheet for any applicable switch costs.
How to Change Your Super Investment Option
Step 1 — Log in to Your Fund’s Online Portal
Most large super funds have an online member portal or mobile app. Log in with your member number and password.
If you don’t have online access, contact your fund’s member services line — they can walk you through the switch by phone or send a form.
Step 2 — Navigate to Investment Options
Look for a section labelled:
- “Investment options”
- “Investment choice”
- “Manage investments”
- “Switch investments”
The exact label varies by fund. On mobile apps, this is typically found under your account settings or super account summary.
Step 3 — Review Your Current Option
Before switching, check:
- What option you’re currently in (name, asset allocation, fee)
- Your current balance and how it has performed over 1, 3, 5, and 10 years
- The unit price history if available
Step 4 — Compare Available Options
Look at each available option and compare:
- Asset allocation — what percentage is in growth vs defensive assets
- Total fee — administration fee + investment fee + indirect cost ratio (TCR)
- Historical returns — 5-year and 10-year net returns for that specific option
- Risk profile — how often has this option had a negative year?
The fund’s PDS and each option’s investment fact sheet contain this information. APRA’s YourSuper Comparison Tool (via moneysmart.gov.au) allows comparison across funds for MySuper products.
Step 5 — Choose What to Switch
Most funds give you two separate choices:
- Redirect future contributions — new money (employer SG, salary sacrifice, personal contributions) goes into the new option from the switch date onwards
- Switch your existing balance — move your current balance from the old option to the new one
You can do one or both. If you want a gradual transition — for example, keeping your existing balance in growth while directing new contributions to conservative — you can mix options.
Step 6 — Submit and Confirm
Confirm the switch. The fund will process it on the next available unit price date (typically the next business day). Check your account a week later to confirm:
- The switch has been processed
- Your balance is now showing in the new option
- New contributions are being directed correctly
How Long Does a Switch Take?
Most switches are processed within 1–5 business days. The exact timing depends on the fund’s processing cycle and the unit pricing date used. You may notice a brief period where your balance appears to be in both the old and new option — this is normal during processing.
After the Switch
Once you’ve switched:
- Don’t check your balance daily. Short-term fluctuations are normal in growth options and watching daily movements leads to anxiety-driven decisions.
- Review annually. Your investment option should reflect your current stage of life — not a decision you made years ago and never revisited.
- Update your nominated beneficiaries if relevant — a switch in investment option is a good reminder to check your binding death benefit nomination is current.
Frequently Asked Questions
Will switching affect my contributions from my employer? Switching your investment option does not change which fund receives your employer’s SG contributions — only the fund you’re in determines that. The switch only changes how money within your existing fund is invested.
Can I switch back if I change my mind? Yes. Investment option switches are not permanent. You can switch back at any time, subject to any switch frequency limits in your fund’s PDS. Be aware that switching back quickly (e.g. after a market recovery) may mean you missed the recovery — think carefully before switching during volatile periods.
What is the best time of year to switch? There is no specific “best time” — switches are processed at market prices on the date they’re made. Trying to time the market when switching super investment options is generally not advisable. If you’ve made a considered decision to switch, the right time is when you’ve done your research.
I’m in a lifecycle option — can I stop it de-risking? Yes. If your fund is in a lifecycle MySuper that automatically shifts to defensive assets as you age, you can switch to a fixed allocation choice option (e.g. growth or high growth) that won’t change regardless of your age. This gives you control over the allocation at the cost of having to manage it yourself.
Does the switch affect the tax on my super? No. Switching investment options within a super fund is not a CGT event for you personally. Any capital gains are managed at the trustee level and reflected in unit prices — you do not pay CGT when switching options.
See also: Super Fund Types. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.