Super fees are one of the biggest factors affecting your retirement balance — and most Australians have no idea how much they are paying. Even small differences in fees compound significantly over decades.
What the Average Australian Pays in Super Fees
According to APRA data, total fees across the super industry represent approximately 1.0–1.5% of assets per year for the average member, though this varies widely between fund types and options.
A rough guide for a balanced (growth) option:
| Fund type | Typical total fee (% of balance) |
|---|---|
| Low-cost industry fund (MySuper) | 0.4%–0.7% |
| Average industry fund | 0.7%–1.0% |
| Average retail/bank-linked fund | 1.0%–1.8% |
| High-cost retail managed fund | 1.5%–2.5% |
| SMSF (small balance) | Can be 2–5%+ (fixed costs are proportionally higher) |
The Real Cost of Fees Over Time
Fees compound in reverse — every 1% you pay in fees is 1% that doesn’t compound for 30+ years.
| Fee rate | Balance after 30 years on $100,000 starting balance (assumes 7% gross return) |
|---|---|
| 0.5% | ~$515,000 |
| 1.0% | ~$432,000 |
| 1.5% | ~$363,000 |
| 2.0% | ~$305,000 |
The difference between 0.5% and 1.5% in fees is approximately $152,000 over 30 years on a $100,000 balance — before accounting for ongoing contributions.
What’s a Reasonable Fee?
For a diversified (balanced or growth) option:
- Under 0.75%: Competitive — typically large industry funds or indexed options
- 0.75%–1.25%: Average — review whether you’re getting value for the fee
- Above 1.25%: High — scrutinise what services or alpha (outperformance) justify this
- Above 1.5%: Very high — consider whether the option is appropriate
Always compare fees on a like-for-like basis — a balanced option vs a balanced option, not balanced vs high growth.
Why Are Some Funds More Expensive?
Higher fees are not always unjustified — some funds with higher fees provide:
- Access to unlisted assets (infrastructure, private equity) with higher management costs
- Financial planning services embedded in membership
- Defined benefit components with additional administration
- Platform features (investment choice, reporting, adviser fee payments)
However, higher fees do not reliably correlate with higher returns after fees and costs. APRA’s annual performance test specifically accounts for both returns and fees.
What the APRA Performance Test Measures
APRA’s annual performance test measures net returns (after fees) against a benchmark. A fund that earns 8% gross but charges 1.5% in fees will only score on 6.5% net — the same as a fund earning 7% gross with 0.5% fees.
How to Check Your Super Fees
- Log in to your super fund’s online portal
- View your annual statement or fee disclosure
- Check the “Total annual fees” expressed in dollars and as a percentage of your balance
- Compare against the APRA heatmap or YourSuper comparison tool at moneysmart.gov.au
For more: How Super Fees Are Calculated, Total Cost Ratio Explained, Indirect Cost Ratio, How to Read Your Super PDS, APRA Heatmap Guide. For advice on your situation, speak with a licensed financial adviser via MoneySmart.