Top 10 cheapest super funds revealed

With a vast number of superannuation funds out there spread across an array of sectors, it can be hard to decide which fund to join. Luckily, superannuation information provider SelectingSuper has compiled a list of the best fee deals for superannuation funds calculated for a member earning around $50,000 per annum with $50,000 in their fund’s default investment option. The table below contains the top 10 out of 146 super funds as of November 2012 in all segments that any one individual can join.

For the best deals across all superannuation funds however, government and corporate funds top the list. Australia Post Super Scheme (government), Shell Australia Super Fund (corporate), State Super NSW (government), Military Superannuation and Benefits Scheme (government) and South Australian Ambulance Service Superannuation Scheme (government) are the top five funds with the best overall fees.

As the whole point of selecting a superannuation fund is to earn enough to either retire or leave the workforce completely, choosing a superannuation fund with reasonable fees is crucial so the fees do not erode your investment returns. If you do however choose a fund with higher fees, ensure you use the fund to your advantage by capitalising on its more flexible investment choices and more diverse insurance options. Above all, remember that there is no point paying for a service you do not use – your fees do not buy you better returns unless you use your fund astutely.

Also note that the above ‘Total expense ratio’ shows the percentage of fees charged per earnings. Another valid consideration is actual fund performance. This is because a fund that earns you very little may also charge you very little in fees and so would score well on this ratio but not actually help you save for your retirement in the most effective way.

RankFund nameSegmentTotal expense ratio
1First State Super Personal DivisionIndustry fund0.60%
2Club Plus Super Personal DivisionIndustry fund0.62%
3Bendigo SmartStart SuperMaster trust0.64%
4AMP Flexible Super – Super AccountMaster trust0.68%
5AMIST Personal DivisionIndustry fund0.73%
6ASSET Super – PersonalIndustry fund0.77%
7HESTA Super Fund – PersonalIndustry fund0.79%
8Nationwide Super Fund – PersonalIndustry fund0.80%
9Media Super PersonalIndustry fund0.81%
10AustraliaSuper Personal PlanIndustry fund0.81%