Low fees allow you to keep more money in your account; and it’s important to understand exactly what you’re getting in return.
All superannuation funds charge fees, though they can vary greatly between different organisations. As a profit-for-members organisation, Australian Catholic Superannuation believes in keeping our fees low to help our members keep more of their money in their account, growing for their retirement. To assist in that, we charge only what it costs to manage your funds. We do not pay dividends to shareholders or commissions to advisers.
Remember, a small difference in fees now can add up to being a significant difference by the time you retire; it’s important to understand how much you are paying for your fund.
There are several different types of fees that can be charged, including:
Administration fees – general fees that cover the cost of operating the fund and keeping your superannuation account.
Investment fees – fees for managing your investments; these fees generally vary between investment options.
Switching fees – a fee for changing your investment option within the fund (this is not currently charged by Australian Catholic Superannuation).
Buy/sell spread – charged when a transaction is made, including making a contribution, a switch or a withdrawal (this is not currently charged by Australian Catholic Superannuation).
Exit fees – A fee for leaving a fund.
Insurance fee – the cost of insurance provided through your super account (this is not currently charged by Australian Catholic Superannuation).
Fees can be charged regularly, annually or when an action is taken. Please note that other fund costs and expenses may be taken out of fund assets. Please refer to the Product Disclosure Statement for further details.
When you’re comparing fees, costs and performance, it’s important to ensure you’re comparing them equally – apples-to-apples. For example, ensure that fees are taken out at the same time, i.e. fees are charged weekly or fortnightly, or before or after weekly unit prices are determined.
Additionally, the fees for options with different risk profiles can vary greatly so comparing low-risk fund options might not provide clarity if you’re after a higher-risk option.
Product Disclosure Statements (PDS) are a good place to start your comparisons.