10 cheapest low-fee super funds this year
A new report reveals the 10 MySuper products with the lowest fees, with 6 out of 10 being industry super funds.
Rainmaker has released a new report analysing the fees charged by Australian super funds, revealing which funds have the lowest fees for members. According to the report, average super fund fees fell by 1% in the last financial year, as funds face increased competition and more pressure from regulators.
This is great news for consumers, as less super fees means more money in your retirement savings later on.
You can see the 10 MySuper products with the lowest fees in the table below.
10 lowest-fee MySuper products in 2021
| MySuper product | Total fee |
|---|---|
| UniSuper Balanced | 0.65% |
| Bendigo MySuper | 0.70% |
| AMG Corporate MySuper | 0.70% |
| Virgin Super Employer | 0.73% |
| QSuper Lifetime | 0.74% |
| Suncorp Everyday Super Lifestage | 0.77% |
| AustralianSuper Balanced | 0.77% |
| AMIST MySuper | 0.81% |
| Rest Super Core Strategy | 0.89% |
| EISS Super Balanced | 0.89% |
The default MySuper product with the lowest fees is UniSuper Balanced, with total fees of just 0.65% (this is a percentage applied to your total super balance for the year). In dollar terms, if your balance was $50,000, you'd pay just $326 in fees for the year.
Retail super funds are dropping their fees
While member-owned industry super funds have traditionally been known to have lower fees, the report shows that 4 of the 10 cheapest funds are actually retail super products.
Executive director of research and compliance at Rainmaker Information, Alex Dunnin, said retail super funds are dropping their fees to become more competitive with the industry funds.
"Retail superannuation funds have experienced the biggest fee drop in the past decade as a result of significant reductions in administration fees across the sector," said Dunnin.
"The cheapest retail funds are now as low-cost as the cheapest not-for-profit funds."
According to the report, the average total fees charged by not-for-profit industry funds is now 1.07%. In comparison, retail super funds are, on average, charging 1.08% – only slightly higher.
If you haven't looked at your super in a while, you could be paying more in fees than you need to be. Compare super funds to see how your current fund stacks up and, if you decide it's time to switch, you can easily change super funds with our 4-step guide.
