AustralianSuper Admin Fees Too Much?

Zoma on 02/02/2021 - 13:13

Hey everyone,

So I have super account with AustralianSuper. I just got $97 super from my employer last year as I didn't work much. I was looking at my statement. This has been reduced to $17 because AustralianSuper has been charging me $2.25 per week as an Admin fees. Is it normal?

I just got a new job so I was looking at my Super account and I feel like $2.25 per week is too much. Or is it normal fees?

I am new to super, just got my first full time job. Worked on casual two weeks last year, so I am wondering, can anyone help me guide?

Thanks.

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Comments

  • avoidfullprice on 02/02/2021 - 13:16
    +11

    $2.25 per week as an Admin fees. Is it normal?

    Yes.

    • ginormousgiraffe on 02/02/2021 - 14:34
      +3

      Admin fees are higher than some other industry funds, but the percentage fees are relatively low, which makes the fund attractive for higher balances.

      • capslock janitor on 04/02/2021 - 13:53

        i've been out of work for 2 yrs now what? :(

  • Ghost47 on 02/02/2021 - 13:26
    +1

    They upped their fees last year or the year before. I think people got a bit angry about it.

    Have you looked at your insurance premiums? You can adjust them based on your situation, I would recommend this because you can save a lot on fees.

  • bobbified on 02/02/2021 - 13:37
    +8

    I feel like $2.25 per week is too much. Or is it normal fees?

    Time to start reading your PDS to understand how your account works.

  • nephilim on 02/02/2021 - 13:53
    +6

    That’s why it’s never worth having more then 1 super account

    • knasty on 02/02/2021 - 14:19
      +2

      Whilst that is normally true it's not always the case. I get extremely cheap insurance through my employer's chosen super provider but they don't have the investment options I want. The $50 bucks a year I pay to them for admin saves me about $500 per annum in insurance premiums.

      • diarlin on 02/02/2021 - 17:05

        How much is your insurance?

    • bobbified on 02/02/2021 - 15:06
      +1

      …. it’s never worth having more then 1 super account

      It is for me - I have six accounts and insurance in each one that I can't get elsewhere because of a pre-existing condition.

      • Some Guy on 02/02/2021 - 20:05
        +1

        sounds complex but I would think you wont be able to make six claims for the same condition.

        • avoidfullprice on 02/02/2021 - 23:00

          Depending on the insurance type.

          Income insurance - no more than your nominal incomr at a time. most PDS i read says they only top up to a nominal amount including other benefit payout. So, no point making 6 claims unless they have different conditions and waiting period

          TPD - yes. Most PDS i read do preclude payout from another claim. In fact, successful claim from one insurer can help with another claim.

          Death - unsure. Not looked into.

          Not definitive guide - but the concept is described here https://www.lifeinsurancedirect.com.au/life-insurance/policy…

          • bobbified on 02/02/2021 - 23:58
            +1

            @avoidfullprice: They will pay out multiple death and TPD insurance policies. SCI is limited to a total of 75%+super (over one or more policies).

  • Cheeper on 02/02/2021 - 14:29
    +2

    Feel free to search for other super funds and see their fees….

  • toniyellow on 02/02/2021 - 14:50
    +7

    There are some limits on fees if you have a very very low balance (under $6000), a cap of 3% of your balance https://www.apra.gov.au/protecting-your-super-package-freque…

    just got $97 super from my employer last year as I didn't work much

    If you are saying that you only have $97 total in your account (you don’t have other amounts in there from previous jobs), the cap will definitely apply to you and they will refund the excess fees within three months of the end of the financial year.

    If you are starting full time work it is a great time to make sure you roll your super into one place, and make investment choices that suit your age and risk tolerance. https://moneysmart.gov.au/grow-your-super has a lot of resources.

  • avoidfullprice on 02/02/2021 - 15:44
    +2

    Worked on casual two weeks last year, so I am wondering, can anyone help me guide?

    Apart from the fees, understand the insurance cover inside your super. Speak to a super rep for free to help you understand if it is right for you.

  • whooah1979 on 02/02/2021 - 15:49
    +2

    Is it normal?

    How else are they going to pay their fat cats?
    https://www.afr.com/wealth/superannuation/hefty-pay-rises-fo…

    Hefty pay rises for AustralianSuper executives
    In the 12 months to June, the executives, including chief investment officer Mark Delaney and head of investment operations Paul Curtis, were each paid between 2.5 times and three times the level of their salary in 2012. All were paid more than $900,000, with Mr Delaney taking home $1.4 million.

  • whooah1979 on 02/02/2021 - 15:51
    +2

    https://www.afr.com/wealth/superannuation/top-paid-super-fun…

    AustralianSuper CEO Ian Silk ($1.05 million)
    AustralianSuper executives fared the best on pay – their head of risk, Jason Peasley; head of equities, Innes McKeand; and finance executive, Peter Curtis, cracked the million-dollar mark.

  • whooah1979 on 02/02/2021 - 16:01
    +4

    The people that do all the lifting is getting shafted while the suits at the top scooping up all the waterfronts.

    https://www.investmentmagazine.com.au/2020/02/2020-super-fun…

    The highest paid executives are typically investment chiefs, accounting for seven of the top 10 who earned more than $1 million, the survey showed. After UniSuper’s John Pearce, AustralianSuper’s Mark Delaney, the Future Fund’s Raphael Arndt and First State Super’s Damian Graham are the next three highest-paid CIOs. Delaney received a total remuneration package of $1.63 million while Arndt took home $1.46 million. Graham made fourth place, receiving $1.33 million followed by Commonwealth Superannuation Corporation’s (CSC) Alison Tarditi who was paid $1.27 million.

    David Elia, CEO of the $45 billion Hostplus super fund, came in second. He received $1.19 million. AustralianSuper’s Ian Silk, CEO of the country’s largest super fund overseeing assets of $189 billion, came in third, receiving $1.06 million. UniSuper’s Kevin O’Sullivan was in 10th place with a total pay package of $849,320.

    While UniSuper’s Pearce received the biggest bonus of any CIO of a large super fund with a $1.02 million payout, his base salary was $589,744. That’s lower than AustralianSuper’s Delaney who is on $740,800 and Arndt at the Future Fund who gets paid a base of $664,832.

    Topping the list of chairs was TWU Super’s David Galbally, who took home $284,400. Second place went to AustralianSuper’s Heather Ridout, who was paid $253,602, while First State’s Neil Cochrane received a total remuneration package of $210,087.

  • blueyez on 02/02/2021 - 22:56
    +1

    If your balance was under $6k they should've given you a credit for any admin fees that were over 3% of your account balance - they only do this at the end of each financial year or if funds are moved.

    If your super balance is under $200 you are allowed to withdraw it.

    If you plan on keeping the account, try to top it up or give the details to your new employer so that it can start growing. All super accounts take a little while to get started when there are no constant contributions and when accounts are new.

    They are a reputable industry fund who've been in the super game for a long time. It gets confusing comparing super funds, but I reckon most industry funds are fine. If you chose to roll over your super fund, they would also refund the excessive admin fees over the 3% of the account balance.

    Insurance is another consideration. It's one of those things that is good to have in case needed, but most people assume it's not useful and cancel it. Keep in mind if you have default cover you are covered for pretty much everything - if you apply for insurance with your medical history then the insurance company can raise the cost or put exclusions into the cover. Worth thinking about before deciding what to do with it.

  • tabitha731 on 03/02/2021 - 07:15
    +1

    This is actually on the cheaper side of super admin fees, coz it caters to a specific industry

  • SydneySwan on 03/02/2021 - 09:04

    HostPlus is $1.50 per week.

  • demeter on 03/02/2021 - 11:26

    If the balance is less than $6000, the admin fees need to be capped at 3% of the balance.

  • whooah1979 on 03/02/2021 - 11:43
    +1

    OP, you're not alone if you think that super funds are up to some dodgy 💩.

    https://www.news.com.au/finance/superannuation/research-reve…

    Only one in three Australians – 30 per cent – in the 1500-people survey trust superannuation providers and value their advice and an even smaller cohort of 15 per cent cite superannuation funds as key to preparing for their financial futures.

    More than a quarter – 27 per cent – of Australians are confused about what superannuation providers actually do with the funds.

    A total of 10 per cent say they don’t trust superannuation funds while 9 per cent don’t like superannuation funds due to a lack of ethical transparency.

  • afah0447 on 03/02/2021 - 12:33

    I pay about $1.38 per week. It's not too far off the mark.

  • Peck on 03/02/2021 - 13:34

    Unfortunately with minimum fees etc. low balances do pay a higher percentage of their balance in fees. A good reason to consolidate if you have a lot of small super fund accounts.
    Aust. Super has been putting up their fees over time. But I find that my trust in them gives me a lot of comfort. Over a long period of time I have found them to be well administered.
    And, as a principal, I strongly believe in Industry Super Funds. Compare them to the fees that AMP used to charge!!

  • HeWhoKnows on 03/02/2021 - 14:13
    +2

    Funds have a minimum cost structure to operate. Even accounts with $20
    They must ensure your funds and held in the right accounts, run reports bi-annually and mail out statements whilst ensuring they comply with the regulations. The must also have customer service staff on board to answer your questions.
    How do you think they pay for all this?

    You have obviously been charged the bare minimum.
    They are probably running at a loss on your account.

    If you have $20,000 in your accoiunt the monthly fee would probably be the same and you would be singing "Hooray"
    Obviously you dont appreciate this.

    So what are you going to do about it?

    Let me suggest consolidating all your super funds into one account

  • Zachary on 03/02/2021 - 15:48

    When you have zero cents in your super and they still charge you admin fees bringing your total super into negative…

  • jreece1955 on 03/02/2021 - 18:30

    Try QSuper, Queensland Government Super Fund, also open to non-government workers. Definitely lowest fees for low to medium balance accounts. Also highly awarded.

    • brad1-8tsi on 03/02/2021 - 22:32

      I agree. The charge a % of the balance.

      I set my daughter up with Qsuper last year. A $1k balance costs a few dollars per year including investment fee if you go with 50% Au shares & 50% Int'l shares.

  • SlickMick on 04/02/2021 - 00:16
    +1

    Wait till the market is on a downer and they still take thier fees. No thanks.

    I now have SMSF and should be able to run it for a flat fee of about $400. (I hate that I'm forced to pay for an audit every year.)

  • What is rrp on 04/02/2021 - 14:19

    I pay the same, but feel like its justified because of the returns they seem to get?

  • Terbo on 05/02/2021 - 17:10

    Nothing is free. If the fee is not explicit or is very low, how do you think they pay for staff, rent, running costs ? They clip the ticket on investment fees, insurance tax deductions, etc. instead. Try focusing on net returns rather than costs, a difference of ~0.5% on costs may not matter if your asset allocation or return difference is ~2% or more. Big picture thinking.

    • whooah1979 on 06/02/2021 - 07:00

      AustralianSuper’s investment performance for the year to 30 June 2020
      We take a look at the 2020 financial year and the returns earned for members in the Balanced investment option, and Choice Income Balanced option, which both ended the year with a positive result.
      AustralianSuper’s Balanced investment option has delivered return of 0.52% for the year,

      The big picture is that AustralianSuper's return for 2020 was terrible.

  • deme on 06/02/2021 - 00:50

    Switch https://www.barefootinvestor.com/hostplus

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