In this guide
Pension fund fees are unavoidable, but how much you pay varies enormously. Fees differ by fund, investment option and the size of your balance. Even small differences can reduce the income your pension generates over time.
The Productivity Commission (PC) review of super found that fees are “the biggest drain on net returns”. While the PC’s analysis focused on the accumulation phase, the same principle applies in retirement: a higher-fee pension reduces the balance available to generate income.
Fees aren’t easy to compare
The PC also found that close to 60% of super members don’t understand the fees and charges they’re paying, and that’s no less true in retirement phase. Comparing pension fund fees isn’t straightforward.
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