When you join a super fund, your money goes into the fund’s MySuper product by default — unless you actively choose something different. MySuper is a government-regulated default product designed to be simple, low-cost, and suitable as a starting point for most members. A choice product is any investment option you actively select outside of the MySuper default.
Understanding the distinction between the two helps you decide whether staying in the default makes sense — or whether switching to a different option would better serve your retirement goals.
What Is MySuper?
MySuper is a type of super product introduced on 1 January 2014 under the Superannuation Industry (Supervision) Act 1993 (Cth) and regulated by APRA. Any fund that wants to receive employer default contributions must offer a MySuper-authorised product.
MySuper products must meet minimum standards set by law, including:
- A single, simple investment strategy (no complex overlays or sub-strategies required)
- Fee restrictions — certain fees are prohibited or capped (e.g. no entry fees, exit fees cannot be charged since 1 July 2019)
- Basic insurance cover — automatic death and TPD cover must be provided (subject to member eligibility)
- Annual performance testing by APRA — funds that fail the test must notify members
- Disclosure — funds must publish standardised information to enable comparison
If you have never actively selected an investment option, your super is almost certainly in a MySuper product.
Two Types of MySuper Products
Single Diversified MySuper
A fixed asset allocation — typically in the balanced or growth range — applied to all members regardless of age. The allocation does not change over time unless the fund actively rebalances.
This is simpler to understand but means a 60-year-old and a 25-year-old in the same fund may be in an identically allocated portfolio, which may not be appropriate for the 60-year-old.
Lifecycle MySuper
Automatically adjusts your asset allocation based on your age. When you’re young, more is allocated to growth assets (shares, property). As you approach retirement age, the allocation gradually shifts toward defensive assets (bonds, cash) to reduce the risk of a market crash wiping out your savings just before you need them.
Lifecycle products vary significantly in how aggressively they de-risk with age, and what age they start shifting allocations. Some begin de-risking at 40; others at 55. The PDS will specify the glide path.
Lifecycle MySuper products are common at large industry funds — for example, AustralianSuper uses a lifecycle approach in its MySuper product.
What Is a Choice Product?
A choice product is any super investment option you actively select — either within your current fund or by choosing a different fund entirely. Choice products are not subject to all the same restrictions as MySuper and can include:
- Sector-specific options (e.g. 100% Australian shares, 100% international shares)
- Index options (passive tracking of a market benchmark)
- Ethical/ESG options
- Pre-mixed options (conservative, balanced, growth, high growth)
- Member Direct options (some funds allow you to self-direct into ASX-listed ETFs and shares)
Choice products may have different fee structures, different insurance arrangements, and potentially higher complexity than the MySuper default.
Key Differences at a Glance
| MySuper | Choice Product | |
|---|---|---|
| Selected by | Default (no action required) | Member actively selects |
| APRA regulated | Yes — minimum standards apply | Yes — but fewer restrictions |
| Annual performance test | Yes — since 2021 (extended to choice in 2024) | Yes — since 1 July 2024 |
| Fee restrictions | Yes — exit fees banned, some limits apply | Fewer restrictions |
| Automatic insurance | Yes — default cover provided | Depends on fund rules |
| Typical options | Balanced, growth, or lifecycle | Full range including sector/index |
| Suitable for | Members who don’t want to actively manage super | Members who want to tailor their strategy |
Should You Stay in MySuper or Switch to a Choice Product?
Staying in MySuper is a reasonable decision for most members — particularly those who don’t want to actively engage with their super. MySuper products are designed to be broadly appropriate, are subject to performance testing, and must provide automatic insurance.
However, switching to a choice product may be worth considering if:
- You want lower fees — many funds offer index (passive) investment options within their choice product range at lower cost than their actively managed MySuper default
- You have a long time horizon — if you’re under 40 and in a lifecycle MySuper, the fund may be de-risking your portfolio earlier than necessary, costing you growth
- You want ethical investing — MySuper products typically invest across all sectors; ESG/ethical options are usually choice products
- You are approaching retirement — you may want more control over the defensive/growth split as you near your preservation age
How to Switch to a Choice Product
- Log in to your fund’s online portal or app
- Navigate to “Investment options” or “Investment choice”
- Review the available choice options — check the PDS for each (fees, asset allocation, performance history)
- Select your preferred option and confirm the switch
- Check whether you want to redirect future contributions only, or also switch your existing balance
Switches are typically processed within a few business days. Check whether any buy/sell spread applies when switching options within the same fund.
Before switching, review your insurance arrangements — some automatic insurance may be linked to the MySuper product and the terms may differ under a choice product.
Frequently Asked Questions
Is MySuper always the cheapest option? Not necessarily. Some funds offer low-cost index options within their choice product range that are cheaper than the MySuper default. For example, an actively managed MySuper balanced option may charge 0.8%, while a passive index option in the same fund may charge 0.15%. Comparing the Total Cost Ratio (TCR) of each option is the most useful starting point.
Can I be in a choice product and still receive employer SG contributions? Yes. Your employer’s SG contributions go to your nominated super fund, regardless of which investment option you’ve chosen within that fund. The investment option only affects how your balance is invested — not who receives your employer’s contributions.
If I’m in a lifecycle MySuper, can I switch to stop the de-risking? Yes. If you want to maintain a higher growth allocation past the age at which the lifecycle option begins de-risking, you can switch to a fixed choice option (e.g. growth or high growth) that holds a constant allocation regardless of age. This is a personal decision that depends on your risk tolerance, time horizon, and retirement plans.
Does switching from MySuper to a choice product affect my insurance? Potentially. Your automatic insurance cover in MySuper may have different terms, premiums, or definitions under a choice product in the same fund. Review the insurance PDS before switching and confirm your cover continues unaffected — or understand how it changes.
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.