Fees charged by superannuation funds are the major gripe identified in a survey that rated 70 super funds in Australia. Photo / Martin Sykes
BRISBANE - Fees charged by superannuation funds are the major gripe identified in a survey that rated 70 super funds in Australia.
On the upside, consumers are overwhelmingly happy with the financial advice they receive from their superannuation funds, financial research company Canstar Cannex found.
"Industry funds generally have lower
fees because they are not for profit, but retail funds generally offer wider investment choices, so the choice of fund is entirely dependent on your financial situation and future goals," the head of research at Canstar Cannex, Steve Mickenbecker, said.
"Unsurprisingly, [the] survey showed fees are at the top of the list when it comes to members' gripes."
Mickenbecker said fees could be minimised by negotiating with an adviser or fund, using a discount broker or choosing a low-cost fund.
He said levels of satisfaction with advice given by superannuation funds were very high - over 87 per cent.
"This shows that advice really is worth it to people who care about making the most of their superannuation money," Mickenbecker said.
Canstar Cannex's research also showed a shift in superannuation offerings as retail and industry super funds align more closely.
Retail funds are offering lower fees and industry funds are increasing investment options.
"Consumers really should keep a track of these changes and how they may affect their money," Mickenbecker said.
Although there are more than 350 super funds in the market, most are not available to the average person, so Cannex Canstar rated 70 super funds which are available to everyone.
These industry and retail funds were compared across 80 features for each product.
The company rated as five-star superannuation products: AGEST Super Personal, AMIST Super Personal, AMP Flexible Super, AustChoice Super Personal, Esi Super Personal Plan, First State Personal Super, Pursuit Select Personal, Master Key Super and Pension Fundamentals, RecruitmentSuper Select Super and Sunsuper Solutions.
- AAP
