Question 1

What types of super fees are there?

Accepted Answer

Super funds typically charge: administration fees (flat dollar amount and/or percentage of balance), investment management fees (percentage of balance), and insurance premiums (for death, TPD, and income protection). Some also charge buy/sell spreads and switching fees.

Question 2

How much do fees really cost over time?

Accepted Answer

Fees compound over your working life, just like returns. A 1% fee difference on a $100,000 balance can cost over $100,000 in lost retirement savings over 30 years. That's why even small fee reductions matter.

Question 3

What is fee drag?

Accepted Answer

Fee drag measures the percentage of your potential no-fee balance that's been eroded by fees. A fee drag of 15% means you've lost 15% of what your balance would have been without any fees at all.

Question 4

How should I compare super fund fees?

Accepted Answer

Look at the total fee impact, not individual fees in isolation. A fund with higher admin fees but lower investment fees may actually be cheaper overall. Also consider performance after fees — the cheapest fund isn't always the best.

Super Fee Calculator

Frequently Asked Questions

Related Calculators