Being charged a management fee by your super fund is unavoidable. But the types of extra fees you are charged can vary greatly between funds, so it is worth checking out the differences. 

Why? Paying high fees eats away at your super balance. Doing a comparison allows you to make sure you are not paying too much.

Here is an overview of some of the fees you may be charged by your super fund.

Standard fees

Member management fees
These fees are charged by the super fund to manage your account.

Investment management fees
These fees are charged by the super fund to invest your money.

Indirect Cost Ratio (ICR)
These fees are the indirect costs of running a super fund. The super fund adds up their indirect costs, such as performance fees, audit fees and compliance costs. They then divide this amount by the money held within the fund. A percentage is then charged to each member's super account.

Minimum administration fees
A minimum dollar fee charged by the super fund to manage your account.

Other fees

Ideally super funds would not charge members anything more than the standard fees. But some super funds prefer members to invest and not make any account changes.

To encourage this, some charge extra fees for things like withdrawing super, exiting the super fund, switching investment type or even making a contribution.  

Contribution fees
Some funds charge this fee when you initially invest into the super fund, and when you make any subsequent contributions to your account thereafter. Basically they are charging you a fee each time you give them your money. 

Withdrawal fees
Some funds charge this fee every time you make withdrawals from the super fund. It is also known as a redemption fee.

Termination (exit) fees
Some super funds charge this fee when you wish to leave their fund. The 2018 Federal Budget plans to ban super funds from charging exit fees for people trying to close unwanted superannuation accounts. This ban will be effective from 1 July 2019.

Investment switching fees
Some funds charge fees for changing your investment option within the super fund.

Investment buy/sell spread
Transactions such as contributions, switching investments, withdrawals, or payment of fees for insurance may result in underlying assets being purchased (buy) or sold (sell). Some funds charge a fee for these transactions to cover some or all of their costs. 

Aren't happy? Switch!
If you aren't happy with the fees you are paying, or the performance of your fund, Rollit makes it easy for you to find a super fund that better meets your needs. Make sure you take into account your insurance and any exit fees you might be charged before you switch. 

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General advice disclaimer
This is general information only and does not take into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for you having regard to your objectives, financial situation and needs and consider obtaining independent professional advice before making an investment decision. If information relates to a specific financial product you should obtain a copy of the product disclosure statement for that product and consider that statement before make a decision whether to acquire the product.

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