Save with a bank and pay four times as much for super

Annual fees charged on superannuation funds vary widely, from little more than half a percentage point of assets under management, to more than 2 per cent on some supposedly simple options offered by banks. Rice Walker Actuaries said that fees on all types of superannuation funds, expressed as a percentage of assets, fell by an average 0.7 per cent to 1.29 per cent in the two years to June last year. The Investment and Financial Services Association commissioned the Rice Walker study. Sector by sector, industry fund fees fell to 1.17 per cent from 1.23 per cent; corporate master trusts 1.14 per cent from 1.24 per cent; while public-sector funds are slightly higher, up to 0.62 per cent from 0.59 per cent. Personal retail superannuation funds fell to 2.3 per cent from 2.41 per cent. Retirement Savings Accounts, offered by banks as a capital-secure super option, were unchanged at 2.3 per cent.