How we compare
Let’s talk fees
All super funds in Australia have some associated fees. As a Prime Super member, you will incur fees and costs and these may be deducted directly from your super account, from the returns on your investment or from the assets of the superannuation entity as a whole. So it’s important to know what you are paying for.
Here are a couple of the most commonly charged fees:
This fee is charged to look after running your super account. The administration fee charged by Prime Super is currently $1.30¹ per week plus 0.5%¹ p.a of your account balance to $100,000. Then nil on balances over $100,000. Prime Super does not charge an administration fee for balances below $6,000.
¹after benefit of tax deduction
These are the fees you pay for the professional management of your investment and can vary based on the investment options you are invested in. These are usually charged as a percentage of your super balance and may include performance fees.
Prime Super deducts these from the investment earnings BEFORE they are allocated to your account - it is not deducted directly from your account.
Fees vs Net Benefit
When comparing superannuation funds, it is important to look at net benefit – that is how your investment has performed, less any fees and taxes you have paid. Lower fees don’t actually mean a better outcome!
For example: Let’s compare two funds based on fees and returns for the 7 years ending 30 June 2017 based on a $50,000 account balance:
Net member return example - 7 year return to 30 June 2017
Net Investment Return - $50,000 account less admin fee - MySuper option
Base Admin fee p.a.
Investment Return p.a.
Net Investment Return p.a.
Net Result p.a.
As the example above highlights, Fund B might have a higher fee but with a better return, your overall position is better off than if you were with Fund A.
There may be other aspects to consider when comparing super funds such as their insurance product, service to members, long-term returns and administration of the fund.
As a profit-to-members super fund, Prime Super has competitive fees. You can refer to our Product Disclosure Statement (PDS) and Member Guide for details of fees and other costs that you may be charged as a member of the Fund, or call us if you need help to work it out.