Superannuation funds charge fees or charges for looking after your superannuation account. Financial advisers can charge fees (or commissions) for providing you with financial advice and monitoring your investment portfolio.
If you run a self-managed super fund, you may have administration fees, ATO supervisory levy, audit fees and actuarial fees The types of fees that you may encounter include entry fees, administration fees, exit fees, investment management fees, contribution fees, switching fees, financial advice fees and trailing commissions.
Administration fees cover the general running of the fund. A person pays this fee, and often other fees, annually to be a member of a given fund; some funds charge higher fees than others.
Adviser service fees are commission paid to an adviser for recommending a fund.
Contribution fees are upfront fees payable to an adviser or a financial organisation on contributions an individual makes to a retail superannuation fund.
Exit fees are charged by a fund upon withdrawal or transfer of a benefit.
SuperGuide is Australia's only INDEPENDENT website for consumers on superannuation.
SuperGuide was founded by Trish Power, author of Superannuation for Dummies, DIY Super for Dummies, Super Freedom, and many other books on super and investing, and Robert Barnes.