Super Funds With High Fees Will Make You Less Money Over Time

Think that paying higher super fees means someone will be paying more attention to how your retirement money is invested? Think again.

Currency picture from Shutterstock

The team at Pocketbook (our favourite local finance tracking app) tracked the performance of 29 of the largest super funds. Three clear trends emerged:

  • High fees weren't correlated with better performance. "The funds with the greatest return, the ones that are actually going to make you the most money over an investment lifetime, are also the ones with the lowest fees," the analysis suggests.
  • Industry funds perform much better than retail funds.
  • Even on a 10-year timescale, some funds don't perform any better than simply investing in standard government bonds.

While every super fund has to carry the warning "past performance isn't an indicator of the future", those trends seem worth noting. Hit the link for more charts and the full analysis.

Choosing a Super Fund: Here’s The Data — An Analysis of The Superannuation Industry [Pocketbook Blog]


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