Half of Australians don’t know what superannuation fees they are paying
Three-quarters of Australians know their superannuation balance off the tops of their heads, but half don’t know what fees they are paying, which is a costly error.
A new report from the Financial Services Council (FSC) and ING Direct (ING), Superannuation – Australia’s view 2013, found that 72 per cent of Australians know their superannuation balance, but 52 per cent do not know how much they are being charged in fees. Many Australians simply take a cursory glance at their superannuation statement, without querying how much it is costing to run their account.
What is worrying is that 73 per cent of the 1000 working-aged people surveyed didn’t think they would have enough for retirement, with 38 per cent believing they will need a balance of $1 million to see them through retirement. The average balance for women is $112,000, while men fare better with an average of $198,000, according to the two bodies. However, the Association of Superannuation Funds of Australia (ASFA), states that the average balance is $70,000.
When it comes down to how much is needed to fund retirement, 46 per cent of respondents think $500,000 is sufficient, while 38 per cent think $1 million is more on the mark. Overall, 62 per cent of those who responded did not think they would have enough for a comfortable retirement.
Read the full survey findings – Superannuation – Australia’s view 2013.