The right column in the table below shows you the calculated fees on a $50,000 balance. You might have more or less than this in your super, but it's a great way to compare the funds side by side to give you an idea of which charge the lowest (and highest) fees.
Unless indicated otherwise, the information in the table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445.
*Past performance data and fee data is for the period ending Apr 2024
There are a number of different superannuation fees that you may be charged, although not all fees will apply to all funds. Some of the fees that your fund charges might not be charged by other funds and vice versa. The main fees you need to worry about when comparing funds are the admin fees, investment fees and indirect fees. These will clearly be found on the fund's website and in their PDS.
There are additional costs and fees that may apply with your super fund, depending on how your money is invested which could include:
| Response | Female | Male |
|---|---|---|
| I didn't - my employer chose it | 29.45% | 23.17% |
| It was recommended to me | 17.02% | 14.02% |
| Historical performance | 4.97% | 11.59% |
| Industry | 8.6% | 8.74% |
| Fees | 6.31% | 5.49% |
| Brand name | 3.06% | 4.07% |
| Investment options (eg. ethical) | 1.53% | 1.83% |
| Insurance options | 0.19% | 1.63% |
| Advertisements | 0.19% |
If you're not sure what you're looking for, it can be tough figuring out what fees your super fund is charging you. Remember, the main fees you should worry about are the admin fees, investment fees and indirect costs (the ICR fee).
Here are a few ways to find out what fees your super fund is charging you.
Obviously with fees of any kind, the lower the better. The fees you should be paying on your super depends on the fund you're with and the type of investment option you've selected. However for most people who have their super in a MySuper product or another pre-mixed option, fees more than 1-1.5% of your balance are considered to be on the expensive side.
For example, if your balance is $50,000 and your total fees were 1% of your balance you'd have a total annual fee of $500. Fees much higher than this could be considered expensive.
Here are the annual fees charged by some of the biggest super funds in Australia.
AustralianSuper's Balanced option, which is the default MySuper fund, has annual fees of $382 based on a $50,000 balance. This includes annual admin fees of $52 and annual investment and indirect fees of 0.56%.
REST Super's Core Strategy, which is the default MySuper option, has annual fees of $433 based on a $50,000 balance. This includes annual admin fees of $78 plus 0.1% and annual investment and indirect fees of 0.55%.
HostPlus's Balanced option, the default MySuper option, has annual fees of $606.29 based on a $50,000 balance. This includes annual admin fees of $78, plus annual investment and indirect costs of 0.98% a year.
The simplest way to cut down on super fees is to choose a fund that charges minimal fees. It's surprisingly quick and easy to compare fees online, so shop around to find a better deal.
Examine the fee structure of different funds, as member and administration fees could be charged as a flat annual rate or calculated as a percentage of your investment balance. There may even be a tiered fee structure in place, with lower percentages applied on higher balances, so it's wise to regularly review how much you're paying in super fees and whether there might be a better deal elsewhere.
Industry super funds, which are owned by members not shareholders, tend to charge lower fees than retail funds. Keep this in mind when comparing super funds, but remember that fee amounts and structures do vary between individual funds.
As of 30 June 2016, ATO figures reveal that some 43% of Australians have more than one super account, which means almost half the population is paying unnecessary super fees. On the same date there were also a total of over 5.7 million lost and ATO-held superannuation accounts with a total value of just over $14 billion.
With this in mind, one of the key ways you can save on super fees is to consolidate your multiple super accounts into one account. Not only will this eliminate unnecessary fees (you will only have to pay fees on one account instead of on several accounts) but it could also help you boost your retirement savings with money you didn't even know belonged to you. To check on your super, consolidate super accounts and find lost super, login to your myGov account.
One of the largest expenses that can eat away at your super balance every year is insurance premiums. Most funds offer a variety of insurances as standard, including death cover, total and permanent disability and income protection insurance. Many funds offer a default level of insurance to members, so lowering the level of cover you have can reduce fees. It's also a requirement for MySuper accounts to offer life insurance to members, so remember to opt out when you sign up for a new account.
In some cases, you may even be able to remove insurance cover from your super account altogether. However, be warned that if you're thinking of purchasing similar cover outside of your super fund, it will often be more expensive (but may also provide a higher level of cover).
Some super funds offer indexed options as an alternative to the default MySuper product and other pre-mixed products. Because an indexed option tracks an index and is often passively managed, these options often have much lower fees. However, you might prefer to stick with a fund that's actively managed - it's up to you!
If your looking to stay on top of superannuation changes, have a read of our superannuation changes guide
Use our free superannuation calculator to see your projected retirement balance, and how this could change by switching funds.
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