According to a research from ING Direct, retiring Australians could lose as much as $190,000 from their superannuation savings due to the fees that have been imposed over the course of their working lives.
Super fees range from 0 to 2.33 percent, and a balance of $50,000 could incur annual fees ranging from $0 to $1,165 according to ING Direct. The banks also mentioned that the higher fees guaranteed higher returns.
Mark Woolnough, ING Direct third party distribution head, stated that it all boils down to value, and high fees are difficult to justify — thanks to the increase of passive investment strategies. The bank also discovered little difference between active and passive managed options in terms of performance.
Since 2004, Super fees fell 0.42 percent for retail Super and 0.23 percent for industry funds, followed by a 22.6 percent increase of passive investment management rather than active from 2011 to 2013.
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