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No two super funds are alike – and the one thing that can set them apart is the fees they charge. Understanding fees can help you make an informed decision when choosing your super fund. It can also help prevent your balance from being eroded by unnecessary or excessive fees and maximise your income in retirement.
Here’s a quick guide to how fees work on your super account.
Super fund regulations mean all fees charged to members must be listed on their statement – and every super fund must use the same format so it’s easy to compare the fees of one fund against another. However, it can still be difficult to understand what you’re paying for and why.
Depending on your super fund, these fees may apply:
Although each fee may appear to be small by itself, you need to think about how these will add up over the long term. These will be outlined in the Product Disclosure Statement (PDS) or Annual Report.
Some super funds may also offer extra benefits to their members, such as:
It’s also worth looking at the size of the super fund itself. While each fund must be assessed on its own merits, members can often benefit from the strength and scale of larger funds.
You can find a breakdown of fees and costs for each super fund in their Product Disclosure Statement (PDS). In 2017, new rules were put in place to ensure greater transparency in the way funds report their fees and costs.
Your member statement will also show details of amounts deducted from your super account, including:
How much you pay for your super fund is just one of the factors you should consider when choosing the right super fund. As your super may be your most valuable asset in retirement, you want to make sure you're choosing the best option for your circumstances. A financial adviser can help you navigate the market – and put you on track to a comfortable retirement.