You’ve seen the ads? You know, the ones where industry superannuation funds have a crack at all other superannuation providers. I’ve largely ignored them. They actually humor me. Yet the message is loud and clear to many other working folk and retirees – Industry Super Funds are run only to benefit members, have low fees and have never paid commissions to financial planners.
We’ve been doing a bit of work in this space for long enough to know a thing or two about superannuation funds, In fact, I was having a conversation with someone recently on this topic, so I decided to crunch the numbers and compare the pair.
I selected the four most common industry funds, Hesta, CBUS, Australian Super, and HostPlus. I’ve assumed you invest $100,000 in each, and have broken down their respective fees on the far left hand side. I’ve then calculated the dollar value of each expense, summed these values, and translated it back to a percentage.
I’ve then added a fifth superannuation fund, Macquarie Super Manager, to put things into perspective. Here are the results (click for larger image):
Of the four industry funds, Australian Super seems to be the cheapest at 0.98% pa, and HostPlus sitting on the other end of the spectrum at a whopping 1.54% pa.
Meanwhile, the Macquarie Super Manager is chugging along at 0.66% pa. Fees are charges are the one thing you, as an investor, can control – I encourage you to do so. It’s your hard earned money, and you deserve to know what your options are.
Next time you pick up your superannuation statement, please try really hard to see through the marketing, and find out what you’re really paying. What you may be told and what is actually happening could be two different things.
In fact, next time you receive your superannuation statement, call our office and mention this post, we’ll do the hard work for you. Obligation free – no strings attached.