Like most of us, Gen Hallot wasn’t too concerned with her super.
The New Zealander, who was living and working in Australia for several years, thought she could set and forget her super fund account and it would steadily grow without her interference.
However, the 33-year-old had a massive shock when, five years after she’d relocated, she realised her super account balance had been dwindling instead of increased in that time.
Determined to find out why, Gen discovered a hidden fee had been zapping her super account of $109 month – meaning over the course of five years she’d lost more than $5000.
And we don’t mean to alarm you, but it’s a fee many Aussie workers are unwittingly paying right now.
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You see, as Gen discovered, many super providers include an opt-out life insurance policy in their service – or one that customers unknowingly opt-in to when they sign up.
Meaning that unless you cancel that life insurance policy, you are paying monthly or quarterly fees for it. And if you’ve got no dependents or debts, that’s a service many of us really don’t need.
Top Comments
Seriously? To be 33 years old and have absolutely zero idea where your super money is going is just terrible. Did she not look at any statements for the past 5+ years...? I get that superannuation isn't at the top of everyone's priorities when they're young, but when there are so many resources available online to gain at least a basic understanding of different superannuation funds and get yourself organised for the future, there's really no excuse to be this financially illiterate.
They are hardly hidden fees, they will be on the statement you received at least once every 12 months.
I would hope very few super accounts are invested totally in cash. There are specifically designed My Super options for every age group.
Ethical investing is getting big. Be prepared to pay more in fees, they have to work out which companies to exclude which costs money. Also not all funds have the same criteria. Some exclude companies that have anything to do with e.g. tobacco. Some only exclude if they are above a certain % of the business.