Industry super funds vs retail funds near retirement

When you compare industry super funds vs retail funds near retirement, the product you’re in, what it costs in dollars and how it will pay you an income matter more than the fund type. The label is a starting point, not an answer — and in 2026 the regulator’s own testing showed exactly why.

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How this article was put together. Every figure below was checked against the source named under the section it supports — APRA, ASIC’s Moneysmart, the ATO, SuperGuide and an analysis of APRA data by WealthData — on 29 September 2026. Where a figure comes from an analysis of APRA data rather than APRA directly, the text says so. Past performance is not a reliable indicator of future performance.

What is the difference between industry and retail super?

The main difference is who runs the fund and where the profits go. Industry funds were first set up for workers in particular industries. Most are now open to everyone, and they are generally not-for-profit. Retail funds are usually run by banks and other financial institutions. They are open to anyone and keep some profits.

You may also hear about platforms, sometimes called wraps. A platform lets you build your own portfolio from many investment options, in most cases with a financial adviser. Retail funds and some industry funds use platforms, so a platform is not the same thing as a retail fund.

There is also a third option some people consider: running your own fund through a self-managed super fund (SMSF), which sits outside the industry-versus-retail choice entirely and carries its own duties and costs. We weigh that choice in our guide to whether an SMSF or an industry fund is right for your super.

Sources. Moneysmart (ASIC) — Types of super funds; ATO — Choosing a super fund; SuperGuide — The 5 types of super funds explained; SuperGuide — Platforms and wraps; APRA — CPPP 2026 Insights Paper (median platform admin fee).

Are industry super funds cheaper than retail funds?

Usually, but not always — and the fund type tells you less than your own product does. Moneysmart says industry fund fees usually sit in the low-to-medium range, while retail fund fees range from low to high.

Across the whole sector, industry funds reported lower administration and operating costs than retail funds in the June 2026 quarter: about 0.045% of assets for industry funds, compared with 0.152% for retail funds, measured over the quarter. These are sector averages from an analysis of APRA data, not your own fund’s figure.

APRA also publishes median admin fees by product type (as at 28 August 2026):

Sources. Moneysmart (ASIC) — Types of super funds; WealthData — Superannuation analysis by fund type to 30 June 2026 (analysis of APRA data); APRA — CPPP 2026 Insights Paper (median admin fees; flat dollar access fee).

What did the 2026 super fund performance test find?

APRA tested 547 products in 2026, and 12 failed:

• 1 MySuper (default) product. This was BUSSQ’s Balanced Growth option. BUSSQ describes itself as an industry super fund.
• 11 platform products from six trustees, including Bendigo Superannuation, I.O.O.F. Investment Management, N.M. Superannuation, Oasis Fund Management and OnePath Custodians.

APRA also found that platforms, in general, come with poorer investment performance and higher fees. That is the trade-off for their flexibility.

Short-term returns move around. In the June 2026 quarter, an analysis of APRA data had retail funds slightly ahead — about 6.0%, compared with about 5.8% for industry funds. Moneysmart suggests judging a fund on 10 years of results, not recent ones. Past performance is not a reliable indicator of future performance.

Sources. APRA — 2026 superannuation performance test and product insights; BUSSQ — About us; WealthData — analysis of APRA data to June 2026; SuperGuide — APRA’s performance test: platforms continue to miss the mark; Moneysmart (ASIC) — Switching super funds (judge on 10 years).

Why does this matter more once you retire?

When you retire, you usually move your super into a pension account. If you’re not sure how that works, see our guide to how an account-based pension turns your super into a regular income. The important point here is that the regulator’s product review doesn’t follow you there.

The ATO’s YourSuper comparison tool is also limited: it compares MySuper products only. So the two free, official checks most people rely on — the performance test and YourSuper — both stop at the accumulation door. Once you’re drawing a pension, the review is on you (or your adviser).

Sources. APRA — CPPP 2026 Insights Paper (accumulation products only; retirement products to be reviewed separately); Moneysmart (ASIC) — Choosing a super fund; ATO — Choosing a super fund (YourSuper compares MySuper products).

What should a fund review cover?

Government guidance suggests looking at four things:

• Investment performance — over the long term, not the last quarter.
• Fees — in dollars at your balance, not just as a percentage.
• Insurance — the cover attached to your account, and what happens to it if you move.
• Investment options — whether they suit your stage of life and your retirement goals.

If you’d rather not work through this alone, you can get super and retirement planning advice before you retire.

Sources. ATO — Choosing a super fund; Moneysmart (ASIC) — Choosing a super fund (performance, fees, insurance and investment options).

How do I compare my super fund?

1. Find your exact product. Check the fund, the product and the investment option on your annual statement.
2. Check this year’s APRA result. If your product failed, your fund must tell you in writing.
3. Compare fees in dollars at your balance.
4. Compare 10-year returns for similar investment options.
5. Check your insurance. Moving your super may mean losing the cover that comes with your account.
6. Check the investment options suit your stage of life and your retirement goals.
7. Allow for timing. When you switch, your money may be out of the market for a short time.

Sources. APRA — 2026 performance test results (funds must notify members in writing); Moneysmart (ASIC) — Switching super funds.

What mistakes do people make when switching from retail to industry super?

• Choosing by label. In 2026, an industry fund’s default product failed APRA’s test.
• Comparing percentages instead of dollars. Flat platform fees change the maths depending on your balance.
• Losing insurance on a rollover. Moneysmart warns you may lose cover when you move super between funds.
• Assuming someone checks your pension. APRA’s 2026 package doesn’t cover retirement products.
• Judging on recent results. Moneysmart suggests looking at 10 years.

Sources. APRA — 2026 performance test results; Moneysmart (ASIC) — Switching super funds.

Frequently asked questions

These are the questions we hear most about industry super funds vs retail funds.

General advice warning. This information is general only. It does not consider your objectives, financial situation or needs. Before acting, think about whether it’s right for you, read the relevant product disclosure statement (PDS), and seek personal advice.

Plan My Wealth Pty Ltd is a Corporate Authorised Representative (No. 1312868) of Lifespan Financial Planning Pty Ltd, AFSL 229892. Manny Tran is an Authorised Representative (No. 423115) of Lifespan Financial Planning Pty Ltd.

Past performance is not a reliable indicator of future performance. Information current as at 29 September 2026.