Super Fees Can Bite
One in four Australians are paying more than twice as much in fees as they should on superannuation accounts.
Research by ING Direct/Rice Warner found that 25 per cent of Australians paid average annual fees equivalent to 0.51 per cent of their super balance and that being stuck in a high-fee super fund could erode life savings by up to $192,000.
On the bright side, average super fees have dropped by 20 per cent in the past decade to 1.15 per cent of a fund member’s balance.
Nevertheless, one-quarter of Australians are still paying an average fee of 2.33 per cent or $1165 a year on a $50,000 balance.
This is compounded when workers had more than one fund and doubled up on fees. “It’s a good idea to check if you have any lost or forgotten super accounts and think about consolidating multiple funds into a single low-fee account,” ING Direct’s Lisa Claes said.
The average Australian has 2.1 super accounts, usually arising because accounts have not been consolidated when changing employers.