Planning on shutting off the laptop at 60? Better take a look at the fees you're paying. Fees can take a huge chunk out of your retirement stash.
Differences in average super fees
At max we keep our fees low and straight forward. See how max stacks up against the rest.
A recent study by Rice Warner Actuaries shows that the average management fees of most types of super funds are well above max's 1%. In fact, the average fees for some other funds are more than double max's rates*.
How can fees impact retirement dollars?
These fee differences may not look like much but checkout the impact a low fee such as max's 1% can have on your final super payout.
For example, if you're 30 with some super already stashed away, the difference at retirement between max's 1% management fee and the 2.12% average for Retail Personal Super funds could be as much as $64,000 in today's dollars. (See assumptions details below).
How did we work out these figures? We've based our fee comparison on a study by independent financial consultants Rice Warner Actuaries which you can download here. The final retirement savings were calculated using ASIC's Fido Super Calculator (you should check it out, it's quite useful!), which makes other assumptions about things like inflation and tax rates. The calculations are based on a 30-year-old person earning $50k per year, who already has $20,000 in super, and retires at 65. To keep things simple we've assumed a standard return of 8.5% across all fund types, and no other fees or costs. NOTE: The calculations above are only meant to give you an idea of how much difference annual management fees can make to your final super payout – it's not a concrete prediction or guarantee and doesn't compare fund features. You should think about your own personal situation and it's always a good idea to get some independent financial advice before making any important decisions about super.
