The impact fees have on your super

First, let’s go through the different types of fees you’ll find in a super fund. There most common types of fees and costs are:

Example of the impact of fees

That’s a difference of over $85,000 in the ending super balance! If the alternative super fund had an investment fee of 0.5% instead of 1.2%, the difference in the ending super balance would be almost $30,000. This is still a sizable difference despite the investment being 0.3% more. Keep in mind that these examples do not take into account increases in income or extra super contributions, which would magnify the effects of higher fees.


The effects fees can have on your super can be substantial, from having a smaller ending balance to the reduction in retiree income and inheritance amount. This is why it is important for individuals to be aware of the impact fees can have on their retirement savings and to make informed decisions by looking at the cost of the super fund, which includes the cost of the investment option and insurance premiums. It is also why it is important to consolidate your super funds if you have more than one super fund, to avoid paying more than necessary.