How to Make a Fair Comparison ⚖️
Comparing super fund fees can feel like you're not comparing apples with apples. Different funds present their fees in slightly different ways. However, all funds are legally required to provide a standardized "Fees and Costs Summary" in their Product Disclosure Statement (PDS). This is the best place to find the information you need for a proper comparison.
This guide provides general information on comparing funds and is not a recommendation or personal financial advice.
Step 1: Find the Product Disclosure Statement (PDS)
First, you need the key documents. Go to the website of any super fund you're interested in and look for a link to their "Resources," "Documents," or "PDS" section. Download the PDS for their main super product.
A PDS is a legally required document that details everything about the product, including its features, risks, and, most importantly, its fees.
Step 2: Locate the "Fees and Costs Summary"
Open the PDS and look for a section titled "Fees and Other Costs" or a similar heading. In this section, you will find a standardized table. This table is your best friend for comparisons.
It will often include an example of the total annual fees for a member with a $50,000 balance. This is the single most useful figure for comparison. It combines the administration fees, investment fees, and any other ongoing costs into one estimated dollar amount for a typical member.
Step 3: Compare the Key Figures
When you have the PDS for two or three funds, place their "Fees and Costs Summary" side-by-side and compare these key metrics:
- Total Annual Fee (Example): Look at the example for a $50,000 balance. Is one fund charging $350 while another is charging $550? This gives you an immediate sense of which is more expensive.
- Administration Fees: Compare the fixed dollar component (e.g., $1.50/week vs $2.00/week) and the percentage component. A fund with a high fixed fee can be expensive if you have a low balance.
- Investment Fee: For the default "Balanced" or "MySuper" option, how do the investment fees compare? This is usually the largest single fee component.
Don't Forget Insurance!
Remember that insurance premiums are deducted from your account in addition to these fees. While comparing fees, also check the insurance section of the PDS to compare the cost of the default cover provided. A fund might have low admin fees but more expensive insurance premiums, so it's important to look at the whole picture based on your personal needs.