Top 10 low cost MySuper funds for 2021

author-avatar By
on October 20, 2021
Top 10 low cost MySuper funds for 2021

Average super fund fees fell by 1% in the past financial year, despite a 10% rise in superannuation savings.

A report by Rainmaker Information showed 2021 investment returns were at a record-high in 34 years, whilst total fees paid were at historic lows. 

The Superannuation Benchmarking Report reviewed 2,683 fee options offered by 175 superannuation funds, and also revealed the top ten lowest cost MySuper products on the market: 

Rank MySuper Product Total Expense Ratio
1 UniSuper 0.65%
2 Bendigo SSSE 0.70%
3 AMG Corporate 0.70%
4 Virgin Super Employment 0.73%
5 QSuper Accumulation 0.74%
6 Suncorp ESB 0.77%
7 AustralianSuper 0.77%
8 AMIST Super 0.81%
9 Rest Super 0.89%
10 EISS Super 0.89%

Source: Rainmaker Information

The Total Expense Ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund.

The total cost of the fund is divided by the fund's total assets to arrive at a percentage amount, which represents the TER.

Superannuation fees overall have fallen by a quarter over the past decade, according to the report, with almost half the decline happening during the past three years.

Executive director of research and compliance at Rainmaker Information, Alex Dunnin, said competition is driving cost cuts. 

"Six in 10 default MySuper products cut their fees in 2020-21," Mr Dunnin said.

"For the average Australian, these lower fees translate into them getting better value from their super funds. The average Australian pays about $2,200 annually in fees.

"While that's gone up a bit in dollar-terms, so has their account balance. And let's not forget the record investment returns their super funds have delivered to them."

The future of super fees

Rainmaker expects the pressure on super funds to lower their fees will only intensify, and because investment costs make up a huge share of the superannuation fees fund members pay, this will force funds to change the way they invest.

"Products charging high fees will experience huge market and political pressure in the wake of the Your Future Your Super reforms to cut their fees. To do this, funds will have to consider indexing a bigger share of their portfolios," Mr Dunnin said. 

"This pressure on super fund fees, if it stays on its current track, could mean that in five years' time, average super fund fees could be as low as 0.85%. Australia's sharpest priced funds by then could be charging total fees below 0.5%.

"If this was to happen, Australia could be on track to have one of the best value superannuation fund systems in the world."


Advertisement

Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.

Lender

Variable
More details
SELF MANAGED SUPER FUND LOAN
  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
SELF MANAGED SUPER FUND LOAN

SMSF 80

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Variable
More details
  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees

Ocean SMSF (No Offset) (Metro) (Principal and Interest) (LVR < 60%)

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Variable
More details
  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees

SMSF 70 (Refinance)

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Variable
More details
  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees

SMSF Loan (Interest Only) (LVR < 60%)

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Variable
More details
  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees

Liberty SuperCredit SMSF (LVR < 60%)

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Variable
More details
  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees

SMSF Residential

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Variable
More details
  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees

SMSF 70 (Purchase) (New Customer)

  • Easy refinance process
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 22, 2022. View disclaimer.



Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

author-avatar
Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy