SUPER fund members should be paying attention to the fees they are shelling out and ensure they are not letting it erode their retirement funds.
AustralianSuper, one of the nation’s largest funds with 2.2 million members, recently announced a jump in its administration fees, increasing the cost by 75 cents per week or $39 a year.
Most funds charge multiple fees including administration, investment, advice and switching fees, all quickly adding up.
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Industry Super Australia chief executive officer Bernie Dean urged members to analyse their fees to avoid being overcharged.
“We encourage people to look at the net return they get from their fund, what is your fund giving to you after taking into account your fees,” he said.
“Are you getting good value for the fees you are paying? Go onto your fund’s website — they have comparison tools.”
Mr Dean said some funds had flat fees while others charged fees depending on the account’s balance.
AustralianSuper group executive Paul Schroder said despite the recent admin fee increase the fund “remains one of a few funds without a percentage-based administration fee”.
“The change in the administration fee will finance improved products and an uplift in cyber security and digital services for members,” he said.
QSuper has more than 580,000 members and reduced its admin fees in three out of the past four years, falling from 0.22 per cent in 2015 to 0.16 per cent now.
For example, a member pays 16c a year in admin fees for every $100 in their account.
QSuper’s chief of customer experience, Jason Murray, said Australians should look for the total fee they were paying on their account.
“Most funds somewhere should reporting the total fees for the product they are in,” he said.
“Fees are theoretically a good thing because you want to be paying for performance. The average member should be happy to pay if the performance is very good.”
Mr Murray said super statements and a fund’s websites were a good place to check the costs.
Legislation has been introduced that will see super exit fees banned from July 1.