If you have ever looked at your super statement and wondered what kind of fund you are actually in, you are not alone. Most workers are placed in a fund by their employer and never give it a second thought. But there are two main types of super fund in this country — industry funds and retail funds — and the differences between them can add up to thousands of dollars over a working life.
This guide compares industry super funds and retail super funds side by side: how they are run, what they charge, how they have performed, and which type tends to suit which kind of member. For the official basics on choosing a fund, MoneySmart is a good starting point.
Quick verdict
For most people who want a low-cost, set-and-forget fund, an industry super fund is usually the better default choice. Industry funds are run only to benefit members, they tend to charge lower fees, and on long-term averages they have delivered stronger net returns than retail funds.
A retail super fund can be the better fit if you want a wider menu of investment options, more tailored advice, or a fund tied to a bank or financial institution you already use — provided you check the fees carefully, because they are often higher. Neither type is right for everyone, and the best fund is the one with low fees, solid long-term returns, and features you will actually use.
What is an industry super fund?
An industry super fund is a not-for-profit fund that is owned by its members. Many were originally set up by unions and employer groups for workers in a particular industry, such as construction, health, or hospitality, although most are now open to anyone.
Because there are no shareholders to pay, any surplus is put back into the fund for members — usually in the form of lower fees or better services. Industry funds are run only to profit members, and that single difference shapes almost everything else about them.
What is a retail super fund?
A retail super fund is a for-profit fund run by a bank, insurer, or wealth management company. It is open to the general public, and its profits go to shareholders as well as back into the business.
Retail funds often offer a broader range of investment options and more personalised services, such as detailed financial advice and flexible portfolio settings. The trade-off is that the profit motive can mean higher fees, and some members pay for flexibility they never use.
Industry super vs retail super: side-by-side comparison
| Feature | Industry super fund | Retail super fund |
|---|---|---|
| Ownership | Owned by members, not-for-profit | Owned by a bank, insurer, or wealth company, for-profit |
| Where profits go | Back to members | To shareholders and the business |
| Fees | Generally lower | Often higher, though low-fee options exist |
| Investment choice | A solid core range, including a default MySuper option | Usually a wider menu, including more specialised options |
| Insurance | Default death and disability cover included in most funds | Default cover available, with more tailored options on offer |
| Financial advice | General and limited personal advice, often at low or no extra cost | Broader advice services, sometimes at an extra fee |
| Who can join | Most are open to the public, not just one industry | Open to anyone |
| Default option | MySuper product, set by the fund | MySuper product, set by the fund |
Fees: where the gap shows up first
Fees are the most reliable difference between the two types. Industry funds, with no shareholders to pay, have historically charged less than retail funds. That matters more than it sounds: a difference of even half a percent a year, compounded over 30 or 40 years, can mean tens of thousands of dollars less at retirement.
That said, the gap is not the same for every fund. Some retail funds now offer genuinely low-fee products, and some industry funds charge more than others. Always compare the total fees on the fund’s product disclosure statement, not just the headline administration fee — investment fees and indirect costs count too.
Performance: what the long-term figures say
Past performance is not a reliable guide to future returns, but the long-term averages are worth knowing. Figures reported from 2025 APRA data show the median industry fund returned 8.2% per year over 10 years, compared with 7.1% per year for the median retail fund. In the 2024–25 financial year, the median growth option returned 10.5%.
The same data shows industry funds holding $1.485 trillion, or about 36% of all super savings, and all 52 MySuper products passing APRA’s 2025 annual performance test for the second year in a row. Lower fees are one reason for the long-term gap: money not lost to fees stays invested and keeps compounding.
Individual funds vary widely within each type, so these averages should never be the only reason to choose a fund. Check your own fund’s 10-year net return against similar options before deciding.
Investment choice and control
Retail funds usually win on sheer choice. If you want to build a custom portfolio, pick specific asset classes, or use features like direct shares, a retail fund is more likely to offer them. Industry funds offer a smaller menu, but for most members the core options — balanced, growth, conservative, and a few single-asset choices — cover everything they need.
Both types offer a MySuper default product. MySuper products are simple, low-cost default options that employers must use when a worker has not chosen a fund, and they are subject to APRA’s annual performance test.
Insurance and advice
Most funds in both groups include default death and total and permanent disability cover, and many include income protection. Retail funds tend to offer more room to tailor cover levels and add extras, while industry funds keep it simpler and cheaper.
On advice, industry funds commonly include general advice and limited personal advice at low or no extra cost. Retail funds often provide fuller advice services, but these can come with an extra fee. If you need detailed retirement planning, compare what each fund charges for advice before assuming one is cheaper overall.
Who each type suits
An industry super fund tends to suit you if:
- You want a low-cost fund you can set and forget.
- You are happy with a solid range of investment options rather than a huge menu.
- You want profits working for members, not shareholders.
- You do not need ongoing personal financial advice.
A retail super fund tends to suit you if:
- You want a wider choice of investments or more control over your portfolio.
- You value tailored advice and extra services, and are willing to pay for them.
- You prefer to keep your super with a bank or institution you already use.
- You have checked the fees and found a competitive retail product.
Can you switch between them?
Yes. Most employees can choose their super fund, and switching is usually a matter of giving your employer a completed standard choice form with your new fund’s details. Your new fund can also help move your existing balance across.
One thing to check before switching: since November 2021, your super fund generally follows you when you change jobs unless you choose a new one. This is called stapling, and it means you will not be placed in a new default fund automatically. Also check whether you will lose any insurance cover by leaving your current fund, and whether exit fees apply — most funds no longer charge them, but it is worth confirming.
If you are unsure whether switching is right for you, our guide on whether you can have two super accounts explains how holding more than one fund works, and 9 simple ways to grow your super covers the habits that matter more than picking the perfect fund.
Which is better: industry or retail super?
For the average worker, an industry super fund is the better starting point: lower fees on average, stronger long-term net returns on average, and a simple structure that suits a set-and-forget approach. That is why so many default funds are industry funds.
But “better on average” is not the same as “better for you”. A low-fee retail fund with strong returns and the features you want can beat a mediocre industry fund. Compare total fees, 10-year net returns, insurance, and the investment options you will actually use — then choose the fund that wins on your own numbers, not on its label.
Frequently asked questions
Is an industry super fund always cheaper than a retail fund?
Not always. Industry funds are cheaper on average, but individual retail funds can be very competitive, and some industry funds charge more than others. Always compare the total fees of the specific funds you are considering.
Can anyone join an industry super fund?
Yes, in most cases. Although many industry funds started out serving one industry, most are now open to the public, whatever your job.
Do retail super funds perform worse?
On long-term medians, retail funds have trailed industry funds — 7.1% per year versus 8.2% over 10 years in 2025 APRA data. But individual retail funds can and do outperform individual industry funds, so fund-level figures matter more than the category average.
Will switching funds cost me money?
Most funds no longer charge exit fees, and switching itself is free. The main costs to watch are lost insurance cover and any difference in ongoing fees at the new fund.
What happens to my super if I change jobs?
Under stapling rules, your existing fund generally follows you to your new job unless you choose a different fund. Your employer pays into your stapled fund if you do not nominate another one.
This article is general information only and is not personal financial advice. Super rules, fees, and fund performance change over time, so check the current product disclosure statement and consider speaking with a licensed financial adviser before making a decision about your super.
