Super fund members in Australia are now paying 1.1% in fees onaverage. This is down from the 1.2% they were paying in 2018.
This is the headline result from the 2019 Rainmaker Informationsuper fund fee study that analysed fees charged by more than 500superannuation funds and 50 self-managed super fundadministrators.
Super funds are capitalising on their growth in assets undermanagement, achieving greater economies of scale and reducing costsfor their members.
"Super fund fees are approaching an average of 1%.Thesereductions show an industry shifting towards a greater commitmentto improving super for the members," said head of superannuationat Rainmaker Information, Jason Ross.
"Australia's 13.5 million super fund members stillpay $2400 on average each year in fees, the equivalent of theaverage household energy bill."
Of the 1.1% members pay in fees, 0.7% is paid for investmentfees and 0.4% for administration and product related fees, onaverage.
Members pay different fees depending on their product type:
The fall in gross fees was primarily a result of retail fundslowering their fees as a competitive reaction to members movingacross to lower priced NFP funds.
In 2015 the average retail MySuper product charged 0.24% morethan NFP MySuper products. Today this gap has narrowed to just0.04%.
"After ten years of the regulators failing to makeconsiderable impacts on the super landscape, last year'sProductivity Commission and Royal Commission have already startedto prove their effectiveness."
Super funds with the biggest reductions in their MySuper TotalExpense Ratios between 2018 and 2019 were:
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Superannuation fees have fallen 2% over the last financial year to reach to 0.93% per annum, the lowest total expense ratio on record.
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