Australians paying billions in increasing super fees

New research has revealed some new trends in superannuation fund fees. Australians pay billions every year in superannuation fees, with the research finding we paid $32 billion in one year - up 10 per cent on the previous year. Each of us is paying 1.23 per cent of our account balances in fees, which is up from 2017 data where we paid 1.17 per cent.

Most of the fees (two-thirds) goes to investment management, while the other third goes to fund administration costs.

Self-managed superannuation funds had the lowest cost market segment, with an average total expense ratio of 0.82 per cent, based on a two-member fund balance of over $500,000, but the reality varies.

The study, the 2018 Rainmaker Fee Study, looked at 2,500 fee options in 550 superannuation products, with these products holding over 20 million member accounts.