BUSSQ failure exposes retirement super protection gap
Retirees may not be told their super product failed the performance test
Today, APRA released the 2026 results of its annual super performance test. This year, BUSSQ’s MySuper product failed. Thousands of Australians will now receive a letter telling them their super product has underperformed. But retirees invested in BUSSQ’s equivalent retirement option may receive no warning at all.
The results come as new Super Consumers Australia survey findings show 90% of retirees want retirement products independently performance tested.
Super Consumers Australia analysis of APRA’s 2026 performance test results shows retirees are exposed to all 12 options that failed the performance test. BUSSQ’s failed MySuper option has an equivalent Balanced Growth option with retirees invested in it. Retirees are also invested in all 11 platform options that failed.
“BUSSQ will need to tell more than 66,000 members invested in its failed MySuper option that the product has underperformed. But BUSSQ has no obligation to tell retirees invested in its equivalent retirement product,” says Xavier O’Halloran, CEO at Super Consumers Australia.
“Two people invested in essentially the same product should not get different protections just because one has retired. If there is a warning about poor performance, retirees deserve to hear it too,” says Mr O’Halloran.
Retirees want stronger protections
Super Consumers Australia’s nationally representative Your Say on Super survey of 4,815 Australians found strong support for extending performance protections to retirement products.
Among retirees:
- 90% support an independent performance test for retirement investment options
- 86% support consequences when products underperform
- 91% want the Government to publish information so people can compare products
“Retirees are telling us very clearly that they want stronger protections and more transparency,” says Mr O’Halloran.
Government urged to close the gap
Super Consumers Australia is calling on the Government to extend performance testing to retirement products.
The consumer advocacy body is also calling for clear public information and a retirement product comparison tool, so retirees can easily see how products perform.
“The Government announced reforms last week to make financial advice through super funds easier to access. But easier access to advice from a super fund that is failing the performance test is a dangerous mix,” says Mr O’Halloran.
“Australians should not have to become investment experts to avoid products that consistently underperform. Retirees need clear warnings, simple information and real consequences when products fail.”