I was listening to the radio the other day when they started talking about Superannuation. Specifically, how the management fees on Super funds can vary from 0.5 – 2%, depending on the fund.
Whilst this might not sound like a huge difference at first glance, if you take the time to make the comparison of how much fees cost you over the term of the fund then it can add up quite significantly.
Consider this example provided by the MoneySmart website – Gerri ends up with $81000 more in her Super fund by changing to a low fee fund.
Watch out for other fees too
In addition some Super funds also charge numerous other fees eg, establishment fees, contribution fees, performance fees etc.
The bottom line – it is worthwhile taking the time to read your super statements and product disclosure information, and taking action if you don’t like what you see.
You can also check out Super Comparison Websites to see how your Super fund compares.
The Money Smart website put together by ASIC offers many resources on Superannuation.