In this guide
Super fund fees are unavoidable, but not all super accounts are created equal. Fees vary greatly by fund and investment type, but one thing they all have in common is they can be, according to the Productivity Commission (PC), “the biggest drain on net returns”.
The PC report concluded that “fees can have a substantial impact on members — for example, an increase in fees of just 0.5% can cost a typical full-time worker about 12% of their balance (or $100,000) by the time they reach retirement”.
The Productivity Commission also claimed that fees “are also a much more predictable indicator of a fund’s investment performance … than gross returns”. This is a contentious view though as we explore in the SuperGuide article Super fund fees: Do lower fees mean better net returns?
Because of the considerable influence fees have on your final super balance, it’s useful to understand what the average super fund fees are. This way you can better understand where your fund sits within the super landscape and better evaluate its overall performance and value for money.
Comparing super fund fees is not easy
The Productivity Commission also found significant gaps and inconsistencies in how funds reported data on fees and costs. Which it believed “harms members by making fee comparability difficult at best, and thus renders cost-based competition largely elusive”.
Beyond fees many Australians also struggled to make investment comparisons due to there being too many super products to compare (around 40,000!).
The report stated that, “close to 60% of members do not understand their fees and charges, and around 40% lack an understanding of basic investment options (such as growth, balanced and conservative)”.
MySuper vs Choice funds
Fees vary enormously fund to fund, but it’s also important to understand the distinction between MySuper and Choice funds.
MySuper funds are simple super funds that act as a default option for people who don’t choose their own super fund (although any member may choose to be in a MySuper product). They were introduced in 2012 and were designed to have low fees and be easy to compare.
Choice products and options are those in which members have made an active decision to invest and are aimed at members seeking greater control and flexibility. They are more diverse and complex than MySuper products. Super fund trustees may offer multiple Choice products and within these products a wide range of investment options based on a member’s risk profile, goals and personal circumstances.
APRA have been providing statistics on MySuper fees since 2019, and although APRA also included fees for Choice funds in December 2021, unfortunately the latest statistics only feature MySuper funds.
Australians pay a lot in super fees, but at least it’s falling
The Productivity Commission also highlighted that Australians pay over $30 billion a year in fees on their super (excluding insurance premiums).
One piece of good news is that in general terms fees have been falling, although many funds (particularly Choice funds) are significantly higher than the median.
In December 2019, one quarter of MySuper products charged total fees and costs of more than $646 per year for a member with a $50,000 balance. The equivalent figure in December 2021 was $582, a reduction of $65, or more than 10%.
Average MySuper super fees for various balances and investment options
The following tables are based on APRA’s MySuper heatmap, covering 278 super fund investment options as at June 2022.
The table shows the minimum, median and maximum total annual fees as a dollar figure and as a percentage of balance for super balances of $10,000, $25,000, $50,000, $100,000 and $250,000 and for various investment options. Median means that half of the fees analysed were below this figure, and half were above.
The number one insight from the findings is there is no such thing as an average fee. Super fund fees vary not just on the balance and what type of fund it is, but also by the investment option.
For example, the median fee for a $10,000 balance across all funds is 1.52% (as a percentage of balance) compared to 0.88% for a $250,000 balance.
Similarly, the median fee for a $50,000 balance invested in an All growth option is 1.15% (as a percentage of balance) compared to 1.01% for the same balance invested in a Conservative option.
Average super fund fees for a $10,000 balance
| Minimum ($) | Median ($) | Maximum ($) | Minimum (%) | Median (%) | Maximum (%) | |
|---|---|---|---|---|---|---|
| All MySuper funds | $48 | $152 | $217 | 0.48% | 1.52% | 2.17% |
| Conservative funds (21-40% growth) | $44 | $167 | $357 | 0.44% | 1.67% | 3.57% |
| Balanced funds (41-60% growth) | $31 | $162 | $377 | 0.31% | 1.62% | 3.77% |
| Growth funds (61-80% growth) | $31 | $174 | $358 | 0.31% | 1.74% | 3.58% |
| High growth funds (81-95% growth) | $55 | $179 | $357 | 0.55% | 1.79% | 3.57% |
| All growth funds (96-100% growth) | $31 | $178 | $360 | 0.31% | 1.78% | 3.60% |
Source: APRA
Average super fund fees for a $25,000 balance
| Minimum ($) | Median ($) | Maximum ($) | Minimum (%) | Median (%) | Maximum (%) | |
|---|---|---|---|---|---|---|
| All MySuper funds | $120 | $283 | $428 | 0.48% | 1.13% | 1.71% |
| Conservative funds (21-40% growth) | $110 | $290 | $573 | 0.44% | 1.16% | 2.29% |
| Balanced funds (41-60% growth) | $78 | $295 | $720 | 0.31% | 1.18% | 2.88% |
| Growth funds (61-80% growth) | $78 | $313 | $655 | 0.31% | 1.25% | 2.62% |
| High growth funds (81-95% growth) | $138 | $328 | $673 | 0.55% | 1.31% | 2.69% |
| All growth funds (96-100% growth) | $78 | $325 | $745 | 0.31% | 1.30% | 2.98% |
Source: APRA
Average super fund fees for a $50,000 balance
| Minimum ($) | Median ($) | Maximum ($) | Minimum (%) | Median (%) | Maximum (%) | |
|---|---|---|---|---|---|---|
| All MySuper funds | $235 | $495 | $785 | 0.47% | 0.99% | 1.57% |
| Conservative funds (21-40% growth) | $200 | $505 | $925 | 0.40% | 1.01% | 1.85% |
| Balanced funds (41-60% growth) | $155 | $515 | $1,320 | 0.31% | 1.03% | 2.64% |
| Growth funds (61-80% growth) | $110 | $545 | $1,160 | 0.22% | 1.09% | 2.32% |
| High growth funds (81-95% growth) | $275 | $560 | $1,240 | 0.55% | 1.12% | 2.48% |
| All growth funds (96-100% growth) | $155 | $575 | $1,490 | 0.31% | 1.15% | 2.98% |
Source: APRA
Average super fund fees for a $100,000 balance
| Minimum ($) | Median ($) | Maximum ($) | Minimum (%) | Median (%) | Maximum (%) | |
|---|---|---|---|---|---|---|
| All MySuper funds | $410 | $920 | $1,500 | 0.41% | 0.92% | 1.50% |
| Conservative funds (21-40% growth) | $350 | $940 | $1,850 | 0.35% | 0.94% | 1.85% |
| Balanced funds (41-60% growth) | $310 | $960 | $2,520 | 0.31% | 0.96% | 2.52% |
| Growth funds (61-80% growth) | $140 | $1,030 | $2,200 | 0.14% | 1.03% | 2.20% |
| High growth funds (81-95% growth) | $550 | $1,040 | $2,380 | 0.55% | 1.04% | 2.38% |
| All growth funds (96-100% growth) | $310 | $1,060 | $3,100 | 0.31% | 1.06% | 3.10% |
Source: APRA
Average super fund fees for a $250,000 balance
| Minimum ($) | Median ($) | Maximum ($) | Minimum (%) | Median (%) | Maximum (%) | |
|---|---|---|---|---|---|---|
| All MySuper funds | $925 | $2,200 | $3,650 | 0.37% | 0.88% | 1.46% |
| Conservative funds (21-40% growth) | $775 | $2,250 | $4,625 | 0.31% | 0.90% | 1.85% |
| Balanced funds (41-60% growth) | $775 | $2,300 | $6,150 | 0.31% | 0.92% | 2.46% |
| Growth funds (61-80% growth) | $225 | $2,425 | $5,325 | 0.09% | 0.97% | 2.13% |
| High growth funds (81-95% growth) | $1,250 | $2,450 | $5,800 | 0.50% | 0.98% | 2.32% |
| All growth funds (96-100% growth) | $775 | $2,475 | $7,450 | 0.31% | 0.99% | 2.98% |
Source: APRA
How can I find out what fees I’m being charged?
The fees charged by your fund are either a dollar amount (fixed) or based on a percentage of your balance, earnings or both, and are deducted from your super balance.
Your super fund must report all fees and costs in the product disclosure statement (PDS) and in your annual statement. You might also find a schedule of fees on your fund’s website.
If in doubt, call your fund or financial adviser and ask them to explain how much you are being charged.
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