Yahoo Finance Why your super fund could be costing you $22,000
Your retirement savings could be getting swallowed up in exorbitant fees if you’re with one (or more) high-cost superannuation funds.
The Productivity Commission – which has been tasked with reviewing the competitiveness of the Australian financial system – has argued that merging the 50 smallest highest-cost and 10 lowest-cost funds could save Aussies in $1.8 billion in fees, or $22,000 each at retirement.
Even with a more conservative estimate, this would still come to $750 million.
“If the median cost saving from these gains was passed through to all members as lower fees (a reduction of about 10 basis points) […] an average member within the system would be $22,000 better off in retirement,” the Productivity Commission supplementary paper said.
Last week, the winners of SelectingSuper’s 2018 super fund awards were announced, with Hostplus taking out the top spot.
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