What impact do fees have on my super?

The fees you pay can make a considerable difference to what you are left with in your super balance when you retire.

For example, a Moneysmart case study shows a 30-year-old earning $50,000 a year with an existing super balance of $20,000 paying fees of 2.5% could have $81,000 more in super at age 65 by switching to a fund with total fees of 1%.

So when considering a super fund, it is a good idea to take into account the fees that are charged, along with the fund’s long-term performance. Also, keep in mind the insurance and quality of advice that’s on offer can vary greatly between providers.

To help give you an idea of the fees that may be charged by various funds, Canstar’s comparison table displays the annual fees for super funds on Canstar’s database.

The annual cost takes into account administration fees, investment fees and performance fees where applicable, and any other indirect costs, while the cost of insurance is not considered.

Please note that to ensure like-for-like comparison, only the default investment option from each super fund has been captured within Canstar’s database. Where there is no default, the option with the highest ‘funds under management’ and a 60–80% growth asset allocation is used, so the fees of the funds listed in the tables below are not necessarily the cheapest super funds on the market.

Investment options that have larger holdings of defensive assets (e.g. term deposits and bonds) typically have lower fees, although the long-term returns may be less than that of a fund with 60–80% in growth assets.

Compare Super Funds

How do I check my super fees?

What fees a super fund charges should be included in a fund’s Product Disclosure Statement (PDS). Super funds are also required to report what fees they charge to the Australian Prudential Regulation Authority (APRA).

It’s a good idea to look at all the fees a fund is charging when you are comparing funds.

The fees should also be detailed on your super fund statements. If you don’t understand why a particular fee has been charged, then you should raise this with your super fund and ask them to explain in more detail.

You may also like to check other key disclosure documents, such as the Target Market Determination (TMD), Investment Guide, Insurance Guide and Fees Guide/Reference Guide if it applies to ensure you understand any fees, charges or special terms and conditions that apply with your policy.

The cost of insurance through super

In addition to fees, you may also be charged a premium when you have insurance included within your super account.

→ Read more: Pros and cons of life insurance through your super fund

Most super funds automatically provide some members with life insurance – typically, life cover and total and permanent disability (TPD) insurance.

Since 1 April, 2020, this is provided on an opt-in basis for most new members who are under 25 or have a balance below $6,000.

The cost of insurance within super will typically depend on factors such as your level of cover, your age, whether you smoke and your occupation.

Premiums are automatically taken out of your super balance but you can opt out of this insurance if you want.

Are low fees important in super?

Low fees are an important consideration when comparing super funds, but they aren’t the only factor to think about. For example, you may want to consider low fees in conjunction with a fund’s long-term performance, as the savings gained from low fees can be reduced or even outweighed by poor performance.

It’s also worth remembering that a fund’s past performance is not necessarily an indication of future performance. Other factors to think about include the advice and insurance offerings of the fund you are considering.

Our list of top performing super funds may help you get an idea of which funds on Canstar’s database have historically performed well. Or, you can compare the fees and features of various super funds on Canstar’s database.

Australians pay billions of dollars in superannuation fees every year so it may be worth checking what fees apply when considering the right super fund for you. Canstar rounds up some of the lowest fee super funds on its database, based on annual cost for a range of balances.

The fees you pay include those for investment management, advice and administration, which are deducted from your super balance. The amount you pay can vary greatly depending on your age, account balance, investment type and the super fund you are with.

Australians paid out more than $9.1 billion in total fees to super funds in the financial year to June 2021, according to figures from the Australian Prudential Regulation Authority (APRA). The biggest cost was for administration ($4.1 billion) followed by investment ($2.9 billion).

→ Read more: Super fees explained

What impact do fees have on my super?

The fees you pay can make a considerable difference to what you are left with in your super balance when you retire.

For example, a Moneysmart case study shows a 30-year-old earning $50,000 a year with an existing super balance of $20,000 paying fees of 2.5% could have $81,000 more in super at age 65 by switching to a fund with total fees of 1%.

So when considering a super fund, it is a good idea to take into account the fees that are charged, along with the fund’s long-term performance. Also, keep in mind the insurance and quality of advice that’s on offer can vary greatly between providers.

To help give you an idea of the fees that may be charged by various funds, Canstar’s comparison table displays the annual fees for super funds on Canstar’s database.

The annual cost takes into account administration fees, investment fees and performance fees where applicable, and any other indirect costs, while the cost of insurance is not considered.

Please note that to ensure like-for-like comparison, only the default investment option from each super fund has been captured within Canstar’s database. Where there is no default, the option with the highest ‘funds under management’ and a 60–80% growth asset allocation is used, so the fees of the funds listed in the tables below are not necessarily the cheapest super funds on the market.

Investment options that have larger holdings of defensive assets (e.g. term deposits and bonds) typically have lower fees, although the long-term returns may be less than that of a fund with 60–80% in growth assets.

Compare Super Funds

How do I check my super fees?

What fees a super fund charges should be included in a fund’s Product Disclosure Statement (PDS). Super funds are also required to report what fees they charge to the Australian Prudential Regulation Authority (APRA).

It’s a good idea to look at all the fees a fund is charging when you are comparing funds.

The fees should also be detailed on your super fund statements. If you don’t understand why a particular fee has been charged, then you should raise this with your super fund and ask them to explain in more detail.

You may also like to check other key disclosure documents, such as the Target Market Determination (TMD), Investment Guide, Insurance Guide and Fees Guide/Reference Guide if it applies to ensure you understand any fees, charges or special terms and conditions that apply with your policy.

The cost of insurance through super

In addition to fees, you may also be charged a premium when you have insurance included within your super account.

→ Read more: Pros and cons of life insurance through your super fund

Most super funds automatically provide some members with life insurance – typically, life cover and total and permanent disability (TPD) insurance.

Since 1 April, 2020, this is provided on an opt-in basis for most new members who are under 25 or have a balance below $6,000.

The cost of insurance within super will typically depend on factors such as your level of cover, your age, whether you smoke and your occupation.

Premiums are automatically taken out of your super balance but you can opt out of this insurance if you want.

Are low fees important in super?

Low fees are an important consideration when comparing super funds, but they aren’t the only factor to think about. For example, you may want to consider low fees in conjunction with a fund’s long-term performance, as the savings gained from low fees can be reduced or even outweighed by poor performance.

It’s also worth remembering that a fund’s past performance is not necessarily an indication of future performance. Other factors to think about include the advice and insurance offerings of the fund you are considering.

Our list of top performing super funds may help you get an idea of which funds on Canstar’s database have historically performed well. Or, you can compare the fees and features of various super funds on Canstar’s database.