Superannuation is a big deal for retirement, but not all super funds work the same way. Some focus on low fees, others give you more investment choices, and a few let you take full control.

In Australia, super funds fall into different types – industry, retail, corporate, self-managed and public sector. Each one has its own setup, rules, and perks.

But the lines between them aren’t as clear as they used to be. Fees, investment options, and flexibility now matter more than labels.

So, do these categories still make sense? Or is it time to think about super differently? Let’s break it down.

Industry super funds

Industry super funds were set up for specific industries, but today, most are open to everyone. They’re run to benefit members, not to make a profit. That generally means lower fees and earnings that go straight back into the fund.

What makes them popular?

• Relatively lower fees compared to some other funds
• MySuper options for simple, low-cost investing
• A wide range of investment choices, including ethical options
• Automatic insurance for many members
• No shareholders – profits go back into the fund

Who do they suit?

Industry super funds attract Aussies who want a simple, low-cost super option. They’re used by a mix of workers, from tradies to office professionals, and are among the biggest funds in Australia.

What to keep in mind

Not all industry funds are the same. Fees, investment choices, and services vary, so it’s worth checking what each fund offers. Some focus on growth, others on stability, and a few give members more control over their investments.

Retail super funds

Retail super funds are run by banks , investment firms, and financial institutions. They offer a wide range of investment options, including high-growth, ethical and conservative choices.

Why do some people choose them?

• A broad mix of investment options, including exchange-traded funds (ETFs) and managed funds
• Access to financial advice (often at an extra cost)
• MySuper products for simple, regulated investment options
• Designed to suit different risk levels and financial goals

Who typically uses them?

Retail super funds attract a mix of investors, from those wanting hands-off options to those seeking tailored advice. Some funds cater to high-net-worth individuals. Others offer low-cost products for everyday Australians.

What to keep in mind

Retail funds aim to make a profit for the company that runs them. That means fees can be higher compared to other super funds. Some charge percentage-based fees, while others have fixed costs that may suit larger balances.

Corporate super funds

Corporate super funds are arranged by companies for their employees. Some are exclusive to current staff, while others let former employees stay.

Why do companies offer them?

• They can negotiate lower fees for employees
• Some come with extra perks, like cheaper insurance
• Managed by a third party or a company-appointed trustee
• Older funds might offer defined benefits, but most are now accumulation funds (which we explore in greater depth later in this article)

Who usually has access?

Corporate super funds are common in big companies. Industries like aviation, finance, and telecommunications have long-running funds that offer competitive benefits.

Should you stick with one?

If you’re with a corporate fund, check what’s included. Some have great benefits, but some aren’t much different from standard funds. If you leave the company, it could be worth seeing if the fund still fits your needs.

What to keep in mind

Not all corporate funds work the same way. Several reflect the characteristics of industry or retail funds. Some have unique rules that set them apart. The features and services available depend on the deal your employer has set up.

Self-managed super funds

Self-managed super funds (SMSFs) let members take full control of their super. Instead of using a large fund, members manage their own investments.

Why do some people choose an SMSF?

• Full control over investments, including property, shares, and ETFs
• Flexibility to tailor an investment strategy
• Ability to pool super with up to five members
• Some people like the hands-on approach

What’s the trade-off?

• More responsibility – members must follow strict rules and handle admin
• Higher costs, including accounting, legal, and audit fees
• Requires time, effort, and financial knowledge
• The Australian Prudential Regulation Authority (APRA) regulates small APRA funds , which are similar but have a professional trustee

Who usually runs one?

SMSFs are often used by investors who want more say in their super. They’re common among people with higher balances who have specific investing goals, like using their super to buy direct property .

Public sector funds

Public sector funds are designed for government workers. Some are exclusive to current employees, while others allow former staff to stay.

Why do they exist?

Public sector funds were created for government employees at the state, federal and local levels. Some of the older funds offer defined benefits, meaning retirement benefits are determined by a set formula based on certain factors. Newer funds follow an accumulation model, where balances grow through contributions and investment returns. Many public sector funds have lower fees, include insurance, and sometimes offer extra employer contributions.

What’s different about them?

• Some funds have unique rules on contributions and withdrawals
• Defined benefit members may receive a set retirement payout based on salary and service length
• Public sector funds aren’t usually open to the general public

Who typically has access?

Government employees, including teachers, healthcare workers and public servants, are the main members. Some long-term employees remain in older defined benefit funds.

Should you stay in one?

If you’re in a public sector fund, check the details. Compare the fees, benefits and investment options vary and keep in mind that some are more flexible than others.

Defined benefit funds vs accumulation funds

Super funds generally fall into two categories: defined benefit funds and accumulation funds. Most Australians today have accumulation funds, but some long-term employees still have access to defined benefit funds.

How do accumulation funds work?

• Your balance grows through contributions and investment returns
• Returns vary depending on market performance
• Most MySuper products fall under this category
• You take on the investment risk, but also the potential rewards

How do defined benefit funds work?

• Your retirement payout is based on salary, years of service, and a set formula
• Market performance has less impact on final benefits
• They're common in older public sector and corporate super funds
• Fewer people have access, as most funds are closed to new members

Which fund type is more common?

Most people today are in accumulation funds, as defined benefit funds have largely been phased out. However, as we mentioned earlier, some government and corporate employees still hold defined benefit accounts.

Do super fund types still matter?

Over the course of Australian superannuation history , funds have evolved. Super funds used to have clear differences, but those lines have blurred. Industry, retail, corporate and public sector funds now offer similar features.

What’s changed?

• MySuper has standardised default options across funds
• Fees have become more competitive across different fund types
• More funds now offer a wide range of investment choices, including ETFs
• Some corporate and public sector funds have shifted to accumulation models

Do fund categories still matter?

For some people, yes. Defined benefit funds still follow unique rules, and SMSFs offer full control. But for most Australians, fees, investment options, and flexibility now matter more than fund type.

What should you focus on instead?

Super fund labels may still exist, but they don’t define what’s inside. It’s the structure, costs, and investment options that count.

Choosing the right super fund: what fits your needs?

There’s no single “best” super fund – what works for one person may not suit another. The right fit depends on your goals, preferences, and financial situation.

What should you consider?

• Fees – high costs reduce long-term returns
• Investment options – some funds offer ETFs and custom portfolios, while others stick to set strategies
• Flexibility – check if you can switch investments or adjust your strategy
• Insurance – some funds include cover for life, disability, or income protection
• Access – corporate and public sector funds may have restrictions on who can join or stay

Does control matter to you?

• If you prefer hands-off investing, MySuper products or larger funds may suit you
• If you want more control, options like SMSFs let you pick your investments
• If you’re in a defined benefit fund, you may have limited flexibility but guaranteed retirement benefits

What’s the next step?

Super funds vary in costs, investment choices and features. Comparing options can help you find the right fit based on your long-term plans.

Your super, your future – take charge of it

Super funds aren’t as different as they used to be. It’s less about labels and more about what works for you. Fees, investments and flexibility make the real difference. But whether you want a simple, low-cost option or more control over your investments, there’s a fund that fits.

Newer options give Australians more say in how their retirement savings are invested. At the same time, traditional funds still provide solid choices for those who prefer a hands-off approach.

Your super is your future. Understanding your options puts you in the driver’s seat – so you can make choices that set you up for the long run.