Have you checked your super fees recently?

If you’re picking a super fund, you’ll probably look at the fund’s past investment performance to help you make a decision. But have you checked the fees?

The fact is, how much you’re paying in fees can make a surprisingly big difference to your super balance over the long-term. That means it’s vital you make sure your chosen fund’s fees are low. Here’s why.

Why low fees matter to your super

In short, paying less for fees has the potential to make a big difference to how much you have saved by retirement.

Even a small difference in fees can make a larger difference over time, thanks to compounding returns. When slightly more money stays in your account, it earns interest which compounds over time. So over the long-term, that small difference can turn into a big one.

The Productivity Commission has previously estimated that for a full-time worker aged 21 with a starting salary of $50,000, paying an additional 0.5 percentage points in annual fees (for example 1.5% rather than 1%) could cost them around 12% of their balance by the time they reach retirement. That works out to be about $100,000.

_{Note: The example is illustrative only and is based on the factors stated. It should not be taken to contain or provide an estimate of your retirement balance. The above scenario and assumptions are outlined in Productivity Commission 2018, Superannuation: Assessing Efficiency and Competitiveness, Report no. 91, Canberra. Higher fees of just 0.50 percentage points can cost a typical worker 12 per cent of their balance (or $100,000) by the time they retire. Assumes a starting salary of $50,000, at age 21, and retirement age 67.}

So why don’t more people shop around for lower super fees?

According to Rainmaker (a leading provider of research and information about the Australian financial services industry), Australians paid over $32 billion dollars in fees to super funds in 2023. That’s a lot of money to take away from retirement nest eggs. So why don’t more Australians look for a better deal?

Unfortunately, it can be tricky to find out exactly how much you’re paying in super fees, let alone whether it’s too much.

Many Australian super funds charge their members multiple different fees, with multiple different names. These might be termed administration fees, investment fees, transaction fees, insurance fees, activity fees and performance fees. But research completed by Vanguard in 2024 indicated that some 34% of Australians have never reviewed or compared super fees.*

So it’s really worth taking the time to check how much you’re paying, as it could make a big difference at retirement.

_{* Source: How Australia Retires 2025, page 43 (based on nationally representative survey undertaken by CT Group in May 2024 on behalf of Vanguard).}

A couple of ways to make the comparison

Head to the ATO’s YourSuper comparison tool and search for your current super fund. If your fund offers a MySuper product, you’ll see a breakdown of its total annual fees as well as its performance.

If your current super fund doesn’t offer a MySuper product, you should check your annual benefit statement or product disclosure statement (PDS). Get in touch with your fund if you’re not sure what some of the fees mean.

Once you know what you’re paying, you can compare your current fees with other funds using the YourSuper comparison tool.

How low fees can boost your super