With a lot of super funds currently being closely examined to ensure that they are meeting industry standards, you’ll want to make sure that your super is performing satisfactorily with your potential retirement.

However, no matter the kind of super fund you opt for or the industry’s standard for super performance, you will be subject to super fees. Understanding how these fees work and the difference they can make to your nest egg is vital.

There are two factors that you need to consider when it comes to super fund fees; the kinds of fees you are being charged and the rate of fees you pay. Opting for a super fund based on these two factors might see you retire with a far more plentiful sum.

There are various types of fees that you may be charged by your super fund provider.

If you would like to find out the fees you are being charged, there are two things that you should do.

Firstly, Google your fund’s product disclosure statement and scroll through to the fees section. You should see a list of different types of fees, with an explanation of what they are, how they are applied, and how often they will be incurred.

Secondly, you should log in to your super fund account and take note of all the fees being charged to you. Investigate how closely these correspond and correlate with the product disclosure statement.

If you feel there are discrepancies, do not hesitate to contact your super fund or financial advisor and ask for clarification. It is worthwhile to do your research and compare the fees that you are being charged against other super funds and what they charge. Being complacent and not paying attention to your super is extremely irresponsible; the dividends you will receive later in life for being diligent now outweigh the burden of taking time to be informed today.

Some common fees across the board include:

– Administration fees: fees covering the costs of operating and managing your super fund account.

– Exit fees: fees incurred for leaving or switching super funds. While this is a common fee, not all funds charge it.

– Investment fees: fees incurred due to the cost of managing where your money is invested. These fees can fluctuate, depending on where your money is invested.

– Activity-based fees: fees incurred for any activity you require your super fund to perform outside of the ordinary management of your account, such as a family law split fee.

Another major factor contributing to how much you accumulate in your super account throughout your working life is the rate of fees you pay. Some funds offer much lower fees than other funds, which can create a difference of hundreds of thousands of dollars when it comes time to retire.

Generally, funds are categorised into three groups; low super fees, medium super fees and high super fees. You will need to weigh up your options and decide whether you want a fund that charges low, medium or high super fees. While it seems like the best option to choose a fund with low super fees, these funds do not necessarily perform as well as medium or high fee super funds, meaning you will not get as good of a return on your investment.

Speaking with your superannuation provider or a financial advisor that specialises in superannuation may be the right choice for you if you wish to learn more about this topic. Remember – action will beat inaction, and allow you to grow your super with less delay.