Super fund fees

Super fund fees and charges can have a significant impact on your retirement savings over time. Each super fund can set their own different fees and charges, and according to a recent Productivity Commission Report, “an increase in fees of just 0.5% can cost a typical full-time worker about 12% of their balance (or $100,000) by the time they reach retirement”.

Common fees that super funds charge include:

• account management fees,
• investment fees (including buying, selling and switching charges),
• withdrawal or exit fees,
• financial advice fees,
• and premiums for life, total and permanent disablement, and income protection insurance.

Self-managed super funds also incur a range of fees and charges, including both set-up and wind-up costs, as well as ongoing costs to fulfil legal compliance obligations. Many of these fees and charges are tax-deductible from the fund’s earnings.