How to compare super fees?

The best way to compare fees between super funds is to read the PDS of the funds. You should be able to compare the sections on fees reasonably easily. 

Fees do play an important role but they should only be part of an assessment of a super fund. It’s also a good idea to consider value for money by looking at the returns after fees are paid and the other benefits the fund offers.

When comparing fees you should look at all the fees that maybe applied to you and the types of super fees that are relevant to you:

• Establishment fee: This is the fee charged for setting up your account.
• Contribution fee: Every time you invest in your fund you make a contribution to the fund and may be charged a contribution fee.
• Withdrawal fee: Every time you withdraw from your fund you may be charged a fee.
• Termination fee: If you wish to leave one fund to join another, exit fees are sometimes charged.
• Switching fee: When you ‘switch’ your investment options in your super fund this can incur a fee.
• Adviser service fee: Your adviser may also charge a fee for any advice relating to your super fund.
• Management fee: Your fund may charge a fee for the administrative activity involved in managing your super account.  This fee can be broken down as follows:
  • Administration fee – general administration.
  • Investment management fee – this will be dependant on the investment options.
  • Issuer fee – fee for the product issuer’s services
  • Expense recovery – the trustee is entitled to recover out-of-pocket expenses from the fund.
  • Member fee – for member account keeping by the fund.

Other costs

Other possible costs include:

• Transaction costs - for buying (contributing), selling (withdrawing) or switching (buying and selling) investments).
• Maintenance costs of direct investment and real property.
• Insurance premiums.