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AustralianSuper freezes admin fee
In an effort to alert its members about the impact fees can have on retirement savings, AustralianSuper has frozen its administration fee at $1.50 per week for the next three years.
AustralianSuper chief executive Ian Silk said the fund's size and scale had allowed it to freeze its administration fee at $1.50 per week, adding it was important for Australians to understand that even a small difference in fees could have a dramatic effect over a lifetime.
"Many Australians don't fully investigate or understand the types of fees they are charged by their super fund, and the true impact of those fees over time. Over a lifetime, these fees can accumulate to a significant amount, essentially reducing retirement savings," Silk said.
The fee freeze began on 1 July 2011, and applies to all AustralianSuper members barring those in the Corporate and Pension divisions. It will continue until 2014, with the potential to run even longer, according to the big industry fund.
"Reducing the real cost of fees is a simple way for funds to show they are committed to the improvement of the industry for all members," Silk said.
He pointed to a SuperRatings comparison of AustralianSuper, and an average of retail superannuation funds for a 25-year old earning $25,000 per annum with a balance of $10,000. The comparison showed that AustralianSuper members would end up with an extra $90,135 in retirement.
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