Few low fee options on allocated pensions
The costs of allocated pensions – a vehicle for accessing retirement savings after retirement – can vary by more than three times. A survey by SuperRatings found annual costs vary from $3000 a year to $10,000 a year. Another study by Industry Funds Services found the median annual fee was equal to almost two per cent of assets under management, which can erode returns earned on those savings. Allocated pensions are in the news because they can be used during a transitional period, as someone continues to work part time while also accessing their superannuation.