Types of super funds compared: making the best choice for your future

Outside of owning your home, your accumulated superannuation savings are likely to become one of your biggest financial assets over time.

In fact, for many of us, the amount of super that we build up over our working lives will be a significant source of income during our retirement.

 Whether you're a legal professional, self-employed, or working in another industry, choosing a super fund that is going to help you achieve your longer-term financial objectives and meet your individual needs in retirement is crucial.

Yet, with literally dozens of different types of super funds to choose from, how do you choose a super fund that is right for you?

For example, what is the difference between an industry fund, a retail fund, a corporate fund, and a self-managed fund?

To start with, it pays to have a good understanding of how the super system works and the things to look for when it comes to choosing a fund.

What is a super fund?

A core role for every super fund is to receive and invest your accumulated super money while you are still working, and when you retire.

Super funds offer a range of different investment options so you can decide how you want your super money to be invested over time.

Your super is made up of the regular compulsory Superannuation Guarantee contributions that have been made by your employer plus any extra contributions you and your employer choose to make into your chosen super fund. These contributions are typically taxed at 15%* and known as concessional contributions. You can also use after-tax money to make personal or voluntary concessional contributions and claim a tax deduction in your next tax return. To learn about claiming a tax deduction on after-tax contributions, click here.

In addition, you may be able to deposit extra funds into your super using your after-tax money and not claim a tax deduction. These are known as non-concessional contributions.

All super contributions made during a financial year are subject to specific contribution limits. Learn more about super contributions and contribution limits.

You are only permitted to access your accumulated super once you meet a specific condition of release under superannuation law, which at a minimum generally means reaching the age of 60 and leaving an employer who contributed to the fund. Early access to your super is only available under very special circumstances, such as financial hardship or on compassionate grounds.

As well as receiving and investing your contributions, super funds also typically offer insurance options such as Death, Total and Permanent Disability (TPD), and Income Protection cover, which are all important factors for members to consider.

What are the types of super funds in Australia?

Millions of Australians have their super invested across a range of different types of super funds. According to the Australian Prudential Regulation Authority (APRA), more than 64% of superannuation members accounts were held with an industry super fund as at March 2026^{^}.

Industry super funds

Industry super funds are profit‑to‑member funds originally created to serve specific industries. 

legalsuper is an award-winning industry super fund that was established in 1989 to provide services to the legal profession. Like other industry super funds, legalsuper is also open to any member of the public.

Because industry funds return profits to members rather than shareholders, they are often considered to provide good value for money.

They typically offer competitive and transparent fees, and a range of investment and insurance options.

Retail super funds

Retail super funds are operated by financial institutions and investment groups.

Like industry funds, they usually provide a menu of investment options, from simple diversified portfolios to specialist asset classes. Their fees and costs vary from low to medium, depending on the fund provider.

Retail super funds also generally offer customisable insurance, allowing members to tailor cover to their needs.

Unlike some industry or public sector funds, (explained below) retail funds are available to any member of the public.

Self‑managed super funds (SMSFs)

Self‑managed super funds are a way for individuals to have greater control over their super investments, which can include investing in assets outside of the remit of many funds regulated by APRA. SMSFs are regulated by the Australian Taxation Office.

For example, many SMSFs have invested in direct commercial and residential property, unlisted shares in Australia and overseas, and in other areas such as private equity.

While offering greater investment flexibility, SMSFs come with significant compliance responsibilities including the lodgement of an annual tax return and financial accounts incorporating up-to-date asset valuations, and the completion of an independent audit report.

Mandatory accounting, auditing and regulatory fees as well as investment management costs can outweigh the benefits of having a SMSF for individuals with small super balances.

legalsuper's Direct Investment Option (DIO) provides eligible members with additional investment choices, including access to selected Australian Securities Exchange-listed securities, exchange traded funds (ETFs) and Listed Investment Companies (LICs), and term deposits.

Public sector funds

These funds are only available to employees of Commonwealth, state or territory governments.

Many public sector funds still offer defined benefit divisions, where benefits are generally calculated using a formula that may take into account factors such as salary and years of service.

Like industry funds, profits are returned to members rather than shareholders, and historically their scale and investment approaches have delivered competitive returns to members over time.

Some public sector funds offer unique insurance arrangements or contribution structures specific to public sector employment.

Corporate super funds

Corporate funds have been set up by some large companies specifically for their employees only.

In some cases, these funds have been able to secure low investment management fees and tailored insurance arrangements.

Corporate funds generally offer default investment options for employees who do not make an active investment choice.

Comparison of super fund types

Fund Type	Fees	Investment Choice	Level of Control	Insurance Options	Support/Tools
Industry	Low-Medium	Medium	Medium	Yes	Yes
Retail	Low-Medium	Medium	Medium	Yes	Yes
SMSF	High	High	High	No	No
Public	Low-Medium	Medium	Low	Yes	Yes
Corporate	Low-Medium	Medium	Medium	Yes	Yes

How to choose a super fund

Choosing a super fund that is right for you is a personal choice. There are lots of considerations.

legalsuper has been delivering customised high-performing super solutions for the legal community since its establishment in 1989.

As legal careers can involve unique financial and professional circumstances, legalsuper focuses on providing a broad range of solutions that are aligned with the needs and values of legal professionals.

Here are some specific super considerations for legal professionals

Fees and cost structure

Value for money fees help preserve more of your long‑term returns, so compare what each fund charges and how those costs impact your balance over time.

Check out legalsuper’s fees and costs.

Consider consolidating accounts to reduce fees. Bringing multiple super accounts together helps avoid unnecessary fees, which is especially useful if you have moved between firms. Before consolidating, consider if there will be any loss of insurance cover that you hold in the process.

Check whether investment options match your risk tolerance

Choose investment options that reflect your career stage, earning capacity, long-term financial goals and appetite for market volatility. 

legalsuper offers 10 core investment options, plus a Direct Investment Option and a Balanced Socially Responsible option, giving members flexibility to match their risk tolerance, goals and values.

View legalsuper’s broad range of investment options.

Compare performance over 5–10 years

Consistent long‑term performance and value for money fees help ensure that your super balance will continue to grow over the course of your career.

See legalsuper’s investment performance.

Note that past performance is not an indicator of future performance.

Review insurance inclusions and exclusions

Check the quality, cost and suitability of included insurance, which can be crucial for legal professionals. Importantly, make sure the fund’s income protection and TPD cover suit the risks of legal work, where long hours and high pressure can impact wellbeing.

See legalsuper’s range of award-winning insurance options.

Look for funds with strong governance and transparency

A fund with robust oversight and clear reporting aligns with the professional standards and expectations of the legal sector.

Find out more about legalsuper’s investment governance and beliefs.

Ensure the fund aligns with your values and career stage

Select a fund that supports your ethical priorities and adapts to your evolving financial goals as you progress through the legal profession. If responsible investing matters to you, look for funds with strong ESG frameworks and transparent screening processes.

Learn more about legalsuper’s ethical approach to investing.

Member services and digital tools

Consider how easy the fund makes it to manage your super, access support and track your investments through modern online tools.

Check out legalsuper’s forms, publications, calculators and webinars on our website under tools and resources.

Notes: * High-income earners (Division 293): Individuals with a combined income above $250,000 pay an additional 15% tax on their concessional contributions (totalling 30%).

^{^}APRA Quarterly Superannuation Industry Publication March 2026 shows there were 15,144,000 members accounts with industry funds out of a total of 23,630,000 members accounts.