Super Fees Impact Calculator
See the powerful long-term impact of super fees on your retirement savings. Compare funds and find out how much you could save.
Your Super Details
Current Fund Balance
$1,013,392
New Fund Balance
$1,250,611
Potential Gain
$237,219
Super Balance Projection
Over 30 years, the seemingly small difference between 1.5% and 0.5% in annual fees has a significant impact. Your super is projected to grow to $1,013,392 with the current fees, but could reach $1,250,611 with the lower fees. This results in a potential gain of $237,219 in your retirement balance, purely due to the compounding effect of lower fees.
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What Is a Super Fees Impact Calculator?
A Super Fees Impact Calculator shows how the fees charged by your superannuation fund can affect your retirement savings. It demonstrates the significant long-term impact that even small differences in fee percentages can have on your final super balance.
Behind the Formula
The calculator projects your superannuation balance at retirement by factoring in your current balance, contributions, investment returns, and—crucially—the fees charged by your fund. It uses compound interest calculations to show how fees compound negatively over time, reducing your potential retirement savings.
Expert Insights
- A seemingly small difference in fees—say, 0.5% versus 1.5%—can reduce your final super balance by over 20% across a 40-year working life. This could mean hundreds of thousands of dollars less in retirement.
- Fee structures matter as much as the percentage. Some funds charge a flat administration fee plus a percentage-based investment fee, which affects different balance sizes differently.
- Lower fees don't always mean better returns. It's important to consider the net return (investment return minus fees) rather than focusing solely on minimizing fees.
Actionable Tips
- Review your super fund's Product Disclosure Statement (PDS) to understand all fees charged, including administration fees, investment fees, and any performance fees.
- Compare your fund's fees to industry benchmarks using the calculator. If you're paying significantly more than average, consider whether the additional services or performance justify the cost.
- If you have multiple super accounts, consolidate them to avoid paying duplicate sets of fees, which can substantially erode your retirement savings over time.
Real-World Examples
High-Fee Impact
Emma, 30, has $50,000 in super with a fund charging 1.8% in total fees. The calculator shows that by switching to a fund charging 0.8%, she could have approximately $143,000 more at retirement, assuming the same investment returns.
Small Balance Comparison
Tom has just started working and has $5,000 in super. For him, a fund with a low percentage fee but high fixed administration fee ($78 per year) actually costs more than a fund with a slightly higher percentage fee but no fixed fee.
Pre-Retirement Fee Check
Susan, 55, has $400,000 in super and plans to retire at 67. The calculator shows that reducing her fees by just 0.5% could give her an additional $38,000 at retirement, even over this relatively short 12-year timeframe.
Glossary of Terms
Administration Fee
A fee charged by super funds to cover the cost of managing your account, often consisting of a fixed dollar amount plus a percentage-based component.
Investment Fee
A percentage-based fee charged for managing the investments in your super fund, which varies depending on the investment option you choose.
Indirect Cost Ratio (ICR)
Additional costs incurred by your super fund's investments that are not charged directly to you but reduce your investment returns.