Strategy 1: Deliver value
A simple and low fee structure
Fees have a significant impact on the superannuation savings people end up with - the higher the fees a member pays, the lower their retirement income. The impact of fee capping on an account balance over the long term can be significant. Graph 1.10 demonstrates the cumulative impact of different fees over time on the final value of investments.
VicSuper believes that everyone should have access to high quality superannuation services for the lowest possible cost. Our ongoing commitment to keep our fee structure as low and simple as possible has been strengthened in recent years by capping our fees and moving to a single fee for all our benefit plans.
Note for graph 1.10: Calculations in this graph have been made using the fund fee calculator on the Association of Superannuation Funds of Australia's website, http://www.superannuation.asn.au/. The calculator is intended to provide illustrative examples based on stated assumptions and is not intended as a substitute for professional advice. Actual outcomes will depend on a range of factors outside the control of ASFA, including future fund earnings and any changes in fees or charges. The calculations do not take into account any other fees or insurance premiums. The calculations are based on an initial contribution of $10,000, with no additional contributions made. The calculator assumes that the amount contributed is not subject to taxation when received by the fund.
The net earning rate assumed is 7% after tax per year in nominal terms. It is assumed that the fees used in the calculations do not change for the periods illustrated (10 years and 30 years).
For further information on fees and other specified costs associated with operating VicSuper Fund, please refer to the relevant VicSuper Combined Financial Services Guide and Product Disclosure Statement - available from the VicSuper website.
A simple and low fee structure:
1.gif)
