About one-third of superannuation funds have no cap on their fees, which means members with higher balances are paying more than if they were with another fund with a capped fee.
Super fund members with large balances are being urged to check if the administration fee they are paying on their retirement savings is uncapped, which could leave them at risk of being slugged by unnecessarily high fees.
Though 70 per cent of the funds in the analysis limit or reduce the impact of administration fees on larger balances, more than 20 of these funds have caps set so high that they only cut-in for balances of more than $1 million. The analysis reveals funds with very competitive administration fees include UniSuper, with a cap of $96 a year, Hostplus, which charges $78 a year, plus a 0.0165 per cent asset-based fee and REST, which has a fee of $78 a year and an asset-based fee, which is capped at $300 a year.AustralianSuper charges $52 a year week, plus an asset-based administration fee of 0.1 per cent a year, with a cap on the asset-based component of $350 a year.
The investment fees will vary, depending on the type of investment option chosen by the fund member. Investments that employ low-cost index managers, those that track markets, can have investment fees as low as 0.1 per cent, or $500 on a balance of $500,000.
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