MySuper creates $2 billion member bill
SuperRatings has estimated that delays to the transition of super members to MySuper products will cost them an extra $2 billion in fees.
While MySuper is set to save Australians around 30 per cent each year in superannuation fees, members deemed eligible for MySuper will not have to be transferred till the final implementation date, 1 July 2017, the ratings agency said.
This three-and-a-half-year MySuper transition period means members' assets will in many cases be retained in their existing accounts, with fees being charged at the old rate.
SuperRatings founder Jeff Bresnahan said the only way for members to ensure they are not paying unnecessarily higher fees is to actively contact their fund.
This was ironic, he added, given that MySuper is designed for those members who are disengaged or have little interaction with their fund.
According to SuperRatings, retail funds are expected to take the longest to transition members.
By delaying this transfer process, the corporate retail sector will generate an extra $700 million in fees from members.
Retail fund members will be the biggest beneficiaries of MySuper once they are transferred, with fees on average set to drop 36 per cent on a $50,000 account balance, from $932 to $593.
The not-for-profit sector, including industry funds, has reduced costs by five per cent in the past 12 months, with the average MySuper fee on a $50,000 account balance currently $498.
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