With a vast number of superannuation funds out there spread across an array of sectors, it can be hard to decide which fund to join. Luckily, superannuation information provider SelectingSuper has compiled a list of the best fee deals for superannuation funds calculated for a member earning around $50,000 per annum with $50,000 in their fund’s default investment option. The table below contains the top 10 out of 146 super funds as of November 2012 in all segments that any one individual can join.
|Rank||Fund name||Segment||Total expense ratio|
|1||First State Super Personal Division||Industry fund||0.60%|
|2||Club Plus Super Personal Division||Industry fund||0.62%|
|3||Bendigo SmartStart Super||Master trust||0.64%|
|4||AMP Flexible Super – Super Account||Master trust||0.68%|
|5||AMIST Personal Division||Industry fund||0.73%|
|6||ASSET Super – Personal||Industry fund||0.77%|
|7||HESTA Super Fund – Personal||Industry fund||0.79%|
|8||Nationwide Super Fund – Personal||Industry fund||0.80%|
|9||Media Super Personal||Industry fund||0.81%|
|10||AustraliaSuper Personal Plan||Industry fund||0.81%|
For the best deals across all superannuation funds however, government and corporate funds top the list. Australia Post Super Scheme (government), Shell Australia Super Fund (corporate), State Super NSW (government), Military Superannuation and Benefits Scheme (government) and South Australian Ambulance Service Superannuation Scheme (government) are the top five funds with the best overall fees.
As the whole point of selecting a superannuation fund is to earn enough to either retire or leave the workforce completely, choosing a superannuation fund with reasonable fees is crucial so the fees do not erode your investment returns. If you do however choose a fund with higher fees, ensure you use the fund to your advantage by capitalising on its more flexible investment choices and more diverse insurance options. Above all, remember that there is no point paying for a service you do not use – your fees do not buy you better returns unless you use your fund astutely.
Also note that the above ‘Total expense ratio’ shows the percentage of fees charged per earnings. Another valid consideration is actual fund performance. This is because a fund that earns you very little may also charge you very little in fees and so would score well on this ratio but not actually help you save for your retirement in the most effective way.
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