Christian Super will reduce its fees from the start of the next month, with the fund declaring that the cuts mean that “most members” will be paying less.
The fixed administration fee on superannuation accounts would be reduced to $1.25 per week, while its variable counterparts would increase to 0.27 per cent. Exit fees would be removed, in line with Government reform, while a three per cent cap for low-balance accounts would be introduced to meet legislative requirements. This cap wouldn’t include insurance premiums.
For members in mixed asset class options, the combined investment fee and indirect cost ratio would see reductions of 0.02 to 0.15 per cent, and those in ethical options would see the same elements reduced by more than half, to 0.17 per cent.
“As a profit-to-member fund, we aim to keep fees as low as possible, while still providing excellent service. This fee reduction is a great outcome for our members and is the direct result of the strong ongoing growth we have experienced as a fund,” Christian Super chief executive, Ross Piper, said.
“We know a number of funds are considering raising their fees to cover the impacts of the Protecting Your Super reforms and are delighted to be able to reduce our fees while incorporating these changes.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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