MySuper vs Retail Super (2026) — What's the Difference?

“MySuper vs retail” is a common comparison in Australian superannuation — but it conflates two different distinctions. MySuper is a product type (a regulatory category); “retail” describes fund ownership (profit-for-member vs shareholder-owned). Both categories can overlap. Here’s how to separate them.

The Two Distinctions

1. MySuper vs non-MySuper (product type)

• MySuper: A standardised, APRA-authorised default product with regulated features, fee disclosures, and an annual performance test. Any fund — industry or retail — can have a MySuper product.
• Non-MySuper (choice): Investment options you actively select — may offer more choices, sector funds, ethical options, but may have higher fees and less regulatory oversight.

2. Industry fund vs retail fund (ownership structure)

• Industry funds: Member-owned, not-for-profit. All investment returns (after fees) go back to members. Examples: AustralianSuper, Hostplus, Aware Super, REST, Cbus.
• Retail funds: Shareholder-owned, run for profit. A portion of returns may go to shareholders. Examples: AMP, Colonial First State, MLC, North (IOOF/Insignia), BT.

Most large industry funds offer a MySuper default. Many retail funds also have MySuper products — but have historically had lower comparative performance on the annual test.

Performance Comparison

APRA’s annual performance test data and 10-year return data consistently shows that:

• Large industry fund MySuper products have outperformed most retail fund MySuper products over 10-year horizons
• The top 5–10 performing MySuper products are predominantly industry funds
• Several retail fund MySuper products have failed the annual APRA performance test
• The performance gap is largely explained by lower fees and higher allocations to unlisted assets (infrastructure, property) in industry funds

Past performance is not a reliable indicator of future performance.

Fee Comparison

Fee differences of 0.5–1% per year compound significantly over a career — the difference between 0.6% and 1.1% total fees on $100,000 over 25 years (assuming 7% gross return) is approximately $70,000.

Insurance Comparison

Neither is universally better — insurance quality varies fund by fund.

Investment Options

• Industry fund MySuper: Typically 1 diversified option (or lifecycle) at the default level, with additional choice options (sector, ethical, indexed, balanced) available to members who actively choose
• Retail fund platforms: May offer a much wider menu — hundreds of managed funds, direct shares, ETFs — but these are generally non-MySuper choice products accessed by members who actively select them

For members who want index funds, sector exposure, or direct shares within super, retail platforms or industry funds with strong choice menus may offer more flexibility.

When Retail Super Makes Sense

Despite industry funds’ general performance advantage, retail or platform super may suit you if:

• You want extensive investment choice (direct shares, managed accounts)
• You need specialist financial advice integrated with your super
• Your employer has a corporate plan with negotiated fee discounts that make a retail platform competitive
• You have a high balance and want tax-integrated estate planning features

Frequently Asked Questions

Are retail super funds worse than industry funds? On average, based on historical data, large industry funds have outperformed retail fund MySuper products after fees. However, individual fund performance varies — some retail products have performed well. Always compare the specific fund, not the category.

Can I have an industry fund with additional investment options? Yes — most large industry funds (AustralianSuper, Hostplus, Australian Retirement Trust) offer a broad choice menu beyond their MySuper default, including indexed options, high-growth, cash, and fixed income.

What happened to many retail super funds? Following the Royal Commission into Banking (2018) and the APRA performance test (2021), several retail funds lost members to industry funds and either merged, exited the super market, or restructured. AMP sold Colonial First State; MLC was sold by NAB to Insignia.

How do I tell if my super fund is an industry fund or a retail fund? Industry funds are generally run on a not-for-profit basis and governed by equal representation of employer and employee organisations. Retail funds are operated by financial institutions (banks, insurers, financial planning groups) for profit. You can check the fund’s website — industry funds typically state “profit-for-member” prominently — or use APRA’s fund search at apra.gov.au which categorises all registered super funds by fund type.

Are corporate super plans — such as an employer’s tailored super arrangement — industry or retail? Corporate plans (sometimes called employer-sponsored or workplace super plans) are usually hosted on a retail super platform — for example, a large employer might have a negotiated arrangement with a retail fund or platform that provides discounted fees. Some corporate plans are hosted through industry funds. The fund type (industry or retail) depends on who manages the underlying investment and insurance, not the employer’s arrangement.

Does being “not-for-profit” actually mean industry fund members receive all investment returns? Not exactly. Not-for-profit means shareholder distributions are not paid from the fund — but funds still incur operating costs (fund management, administration, marketing, trustee expenses) which reduce net returns to members. The key distinction versus retail funds is that retail fund operators can extract a profit margin from the fee pool, whereas industry fund surpluses must be reinvested into the fund for members’ benefit.

Are there areas where retail funds outperform or provide better value than industry funds? Yes — particularly for high-balance members who want extensive investment choice. Large retail platforms (e.g., North, BT Panorama, Macquarie Wrap) offer access to hundreds of managed funds, separately managed accounts, direct shares, and ETFs, which industry funds typically don’t match. For members with complex financial needs, self-managed investment strategies, or integrated financial advice relationships, retail platforms can offer meaningful additional functionality. The value case depends on whether the extra investment flexibility justifies the higher fees.

What’s the difference between a retail super fund and a wrap platform? A retail super fund holds super assets directly in its own trust structure. A wrap platform (or wrap account) is an administration layer that sits on top of multiple underlying investment products — it’s not a fund itself but a platform that holds a diverse mix of managed funds, ETFs, or other assets within a super wrapper. Wrap platforms typically have higher fees than standard retail super funds due to the additional service layer. They are most commonly used by members working with financial advisers who need to manage complex, customised portfolios.

Is APRA’s performance test comparison fair between industry and retail funds? The test methodology attempts to neutralise asset allocation differences by benchmarking each fund against what its own allocation would have earned passively. This means industry funds with high unlisted asset exposure (infrastructure, private equity) are benchmarked against relevant unlisted asset indices — not simply equity indices. However, some industry participants argue that unlisted asset valuations (which are periodic rather than daily) may smooth measured volatility and affect performance test outcomes in subtle ways.

For more: Industry vs Retail Super, Best Performing Super Funds, MySuper Explained. For advice on which type of fund suits you, speak with a licensed financial adviser via MoneySmart.