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Compare low fee super funds

Searching for a super fund with low fees? Use our comparison table to view and compare some of the lowest fee super funds.

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120+ superannuation products in RateCity’s database

Georgia Brown

Vidhu Bajaj

Updated on

25 Dec, 2024

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When it comes to choosing a superannuation fund, fees can significantly affect your long-term savings. At RateCity, we help you compare super funds to find an option that suits your financial goals. By using the available filters, you can refine your search to highlight the funds with the lowest fees, helping you to maximise your retirement savings.

What types of fees do super funds charge?

When shopping for a low fee super fund, it's important to pay attention to the types of super fees your fund charges, and how they compare to those of other funds.

Australian super funds charge a range of fees for different purposes, usually on a monthly basis or if you take an action such as switching funds. The most common types of superannuation fees include:

Administration fees: General fees to cover the cost of managing and operating your super fund membership.
Advice fees: Fees for financial advice given about your super and investments.
Investment fees: Fees for investment management, which can differ depending on the fund and investment strategy.
Switching fees: Fees for changing your investment mix within the fund. Note that exit fees associated with closing or consolidating super accounts can no longer be charged, as of 1 July 2019.
Transaction fees: Fees payable when you make a transaction such as contributing to the fund or withdrawing money.
Insurance premiums: The cost of insurance coverage such as life insurance, income protection cover and/or total and permanent disability (TPD) cover.

Typically, these fees are deducted from your super balance any time you fulfil the criteria for being charged. In the case of admin fees, you’re usually charged each month that you’re a member of the fund.

What is a low fee for a superannuation fund?

One of the easiest ways to find out what a competitive super fund fee is in Australia is to compare funds against each other. But, you'll need to make sure you're comparing apples with apples in order to reach an accurate result.

RateCity's superannuation comparison tables can help you here. Simply sort the table by “Annual fee at $50k balance” to list your results from lowest to highest fees charged, based on an estimate of the fees on a $50,000 balance, invested in a fund's balanced option (check the disclaimer on the rate table for more specifics).

Keep in mind that the fees your fund may charge can differ based on your age, your super account balance and your investment option. You can use the table’s other filters to further narrow down your results and better reflect your available options.

Do low-fee super funds equal better returns?

The short answer is that it depends. In some cases, choosing a fund with lower fees may be worthwhile because lower fees means more of your money can be reinvested and grow over time. For example, if your super balance is relatively low, you might choose a low-fee fund so that the fees don’t cut into your modest balance too significantly.

Over the long term, however, lower fees don’t necessarily mean better returns for you. Your returns are based on a range of factors, including how you choose to invest your money, your particular super fund’s performance and the performance of the market.

Considering past performance isn't a reliable indicator of future performance, comparing fees should be an important factor of choosing a super fund that could play a part in growing your super over the long term.

Other factors to consider when choosing a super fund

Selecting an appropriate super fund isn’t just about choosing the fund with the lowest fees. Here are some of the other key considerations:

Performance

This refers to the investment returns a super fund has seen over a specified period, expressed as a percentage. Keep in mind that super is a long-term investment and returns fluctuate regularly, so it may be best to look at a fund’s overall returns over a longer-term period, minus fees and tax. Past performance is not necessarily an indicator of future performance, but it's often worth comparing your fund's investment performance over at least five years.

Investment options

Most super funds offer different investment options ranging from stable (such as cash investment) to highly volatile (such as 100% investment in shares and property), with balanced options in between.

It's worth noting that funds with higher risk investment options may charge higher fees than more conservative funds, as it can cost more to invest in higher growth assets. Make sure that the fund you choose has a suitable investment option for your needs.

Extra benefits

Some employers pay more than the minimum contributions through certain funds. Consider whether you have access to an employer- or industry-specific fund where you can take advantage of these benefits.

Insurance

Most funds offer some level of life insurance cover for a fee. Check what coverage is available and the cost, to decide whether it's right for you.

Customer service

Look for a fund that can offer support when you need it, and consider the fees charged for services like financial advice.

Which funds have the lowest superannuation fees?

There are a number of different types of super funds in Australia, each with different priorities and as a result, different fee structures.

When searching for low fee super funds, it's important to understand the different types of funds there are, and why they charge the fees that they do.

The five main types of super funds are:

Retail super funds
Industry super funds
Corporate/company super funds
Public sector super funds
Self-managed super funds (SMSFs)

The cost of the fees charged by each of these funds can vary greatly. For example, industry super funds don’t pay commissions to brokers, which other funds (such as corporate funds) charge as indirect costs associated with managing your account.

Industry super funds are not-for-profit funds that are run to benefit members. They tend to charge their members low fees compared to other funds.

In contrast, retail super funds are typically run by banks or investment companies, and aim to keep some of the profit they make to distribute to shareholders. Often, retail funds come at a higher cost than other funds. However, many offer a lower cost MySuper product option that may be better suited to some.

While often restricted to state and federal government employees, public sector funds also tend to offer members lower fees.

SMSFs may offer the most flexibility when it comes to fees, as you control the investments, insurance, and take on the management yourself. But keep in mind, SMSFs do tend to come with a lot more work and often a higher level of risk, so it's important to weigh up the pros and cons before choosing this type of fund.

Can you manage your own super fund?

Yes, you can manage your own super fund. Self-managed superannuation funds (SMSFs) are a popular type of superannuation in Australia.

An SMSF is your own personal super fund that gives you complete control over how your money is invested. SMSFs have similar benefits to professionally managed funds, such as concessional tax rates and the ability to accept contributions from your employer. But, they can also offer more flexibility and other other unique features.

Before you decide to look after your own superannuation with an SMSF, it's important to do your research. Consider speaking to a financial adviser to ensure you’re making an informed decision.

How to compare low-fee superannuation funds

You can find out how your current super fund’s fees and costs shape up by doing a super fund comparison. Look at other funds' fee structures and costs to weigh up whether the fees you’re paying are reasonable.

Remember that low fees aren’t the only yardstick for determining the best fund for your retirement savings. It’s worth also considering long-term performance, investment options, benefits and insurance to get a clearer picture of whether a super fund is right for your individual financial situation.

Super fund comparison tools, such as RateCity's superannuation comparison tables, allow you to compare all of these factors and more, including any SuperRatings awards received by individual funds.

Georgia Brown

Personal Finance Editor

Georgia Brown was a Personal Finance Editor and journalist for RateCity, covering the scope of finance in Australia over loans, credit, mortgage and housing, superannuation, and sustainable finance, to name a few. Before venturing into personal finance, she worked as a reporter for Smart Property Investment, Real Estate Business, and REA's realestate.com.au, and these days her work can be seen across numerous publications, including Lifehacker and RateCity.

Vidhu Bajaj

Personal Finance Writer

Vidhu is a Personal Finance Writer at RateCity. She has been writing about finance topics from car loans and home loans to superannuation and cryptocurrencies for over five years. Before moving into finance, Vidhu went to law school where she studied human rights law. She has a Bachelor of Law degree and has previously worked in asset finance for Clifford Chance for more than four years. During her time at Clifford Chance, she worked in the India, London and Hong Kong offices on everything from aviation to vessel finance. In her spare time you’ll find her reading the Australian Financial Review or spending time with her dog Coco.

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

What types of fees do super funds charge?

When shopping for a low fee super fund, it's important to pay attention to the types of super fees your fund charges, and how they compare to those of other funds.

Administration fees: General fees to cover the cost of managing and operating your super fund membership.
Advice fees: Fees for financial advice given about your super and investments.
Investment fees: Fees for investment management, which can differ depending on the fund and investment strategy.
Switching fees: Fees for changing your investment mix within the fund. Note that exit fees associated with closing or consolidating super accounts can no longer be charged, as of 1 July 2019.
Transaction fees: Fees payable when you make a transaction such as contributing to the fund or withdrawing money.
Insurance premiums: The cost of insurance coverage such as life insurance, income protection cover and/or total and permanent disability (TPD) cover.

Other factors to consider when choosing a super fund

Selecting an appropriate super fund isn’t just about choosing the fund with the lowest fees. Here are some of the other key considerations: