Pay Less On Your Superannuation Fund Fees
27 October 2008
Superannuation fund fees can make a big difference to your retirement savings over time, so minimising the fees you pay could add up to a significant saving over time. There are several ways you may be able to reduce the fees you pay. It is important to understand that often many superannuation fund fees are paid as percentages of your fund, so be careful not to mistake increased fees as a result of extra payments as an increase in the rate of your fees.
What might you be charged for?
There are a plethora of things you might be charged for in your superannuation fund, but it will depend on the specific superannuation fund that you use. Specific types of superannuation funds will often charge fees for similar services, though the rates will vary from fund to fund. For instance, a self managed superannuation fund like ESUPERFUND does not charge performance fees, as you are responsible for the performance of your fund, whereas an industry superannuation fund is likely to charge variable performance fees.
How can fees be reduced?
Fees can be reduced by choosing types of superannuation funds that usually charge lower fees or else by reducing activity in your superannuation fund that could lead to fees being charged. Which activities will cause you to be charged fees will depend on your current superannuation fund, so check to see which activities charge fees and whether you can save on fees by performing some activities collectively, i.e. change multiple investment strategies while only being charged for one change.
Please click on our ESUPERFUND sponsor banner if you are interested in starting a self managed superannuation fund.
