super funds –
are you in one.

Do superannuation fund ‘managers’ just feed us ‘smoke-and-mirrors-financial-gobbledegook’?

You decide.

Many super funds make
a big issue about
charging fewer/
lower fees.

But, when you see the following you might ask yourself, lower than what?

Declared fees are only the tip of the cost iceberg, as the below illustrates.

The following is an excerpt from a major super fund’s financial statement, available publicly.

‘Managed’ super funds
generally charge
‘investment’ or
‘management’ fees
based on an
account balance.

This means that the people who save the most, PAY the most in fees and charges?

What this means if you’re in one that does.

Let’s say your super fund charges an admin/investment fee of 1% per year on your account balance.

That means, if you have
in your super account
you’ll be charged

EVERY year to
‘manage’ your account.

But if you’ve managed
to save

in your super account
you’ll be charged
EVERY year to
‘manage’ your account.

And this situation applies even if you have all your ‘super’ money in CASH which is much like going to the bank and putting all your money in a savings account and how much EXTRA ‘management’ does that need?


Why does no-one ask
the simple question…

‘What does the fund DO
that’s ‘different’ for
the person that’s saved
more that it
for the person
with the smaller
account balance?’.

Banks on the other hand generally pay higher interest the more you’ve saved in your account so you’d be inclined to think a person with a higher account balance in their super fund would pay LESS – NOT MORE.

Now, a skeptical person might decide the reason a super fund might charge like this is because a it’s easier to charge an account for a higher fee the more money it has in it.

i.e. it’s much easier to take $5,000 out of $500,000 than it is out of $100,000


… wouldn’t a person just put their money into a savings account in a bank, which will charge no fees and guarantees interest of at least something every year.

Your ‘managed’ super fund doesn’t make ANY guarantees about returns.

‘Managed’ super funds generally charge ‘investment’ or ‘management’ fees regardless of whether they make any money for you or not.

… or even if your fund value goes backwards.

This begs the question … why would you want to pay someone to lose money for you?

‘Not for profit’?

The following is an excerpt from a major super fund’s financial statement, available publicly.

Yep! – the circled amount is ‘numbers of ‘000s’ – so the amount of $214,176,000 in ‘Administration and operating expenses’ gets paid BEFORE members get anything.

The column on the right is the year before.

Notice the increase in fees
from the previous year
is about 20%.

How is this justified?
as the fund
for it’s members.

There’s no doubt
Life Insurance
can provide
financial security
particularly when
person is young
and starting a
family and has

What’s not so clear is why a person who has NO NEED for life insurance, (like young people just entering the workforce or older people with no debt or dependents), should be made to take out life insurance as a ‘default’ when they join a super fund.

Surely THEIR super savings would be much better used in accumulating savings as quickly as possible not WASTING them paying for life insurance cover they don’t need.

Life insurance premiums can be a big drain on the end-result of a long-term ‘savings’ plan and diminish account balances significantly.

Imagine getting to retirement and discovering your retirement nest-egg has been spent on insurance cover you didn’t need.

It begs the question …?


… do super funds ‘push’ insurance cover so much?

(The default for super funds is when you originally ‘join’ your super fund you automatically get, and pay for, an automatic amount of life insurance cover – that is unless you’re alert to this and deliberately choose to ‘opt-out’ if you decide you don’t want life insurance cover.)

This is especially important as the cost for ‘default’ life insurance in super funds increased by up to 50% since about 2013-2014 and it’s cost is automatically deducted from your super contributions.

Fees don’t stop if you do


There’s lots of reasons
you might stop or
suspend making
into your
super account.

For example :-

You stop working with the same employer – or get laid-off – so you stop making payments into the fund you have.

Or you might change jobs and your new employer makes your payments into a different super fund. (In THIS case, you end up paying fees to more than one super fund – so if you keep moving from one fund to another you end up paying fees to ALL of them).

It’s particularly common for females who stop work for a while to start a family… even if you have every intention of returning to the workforce at a later date.

What happens to the funds left in your super account?

Simple – many super funds will continue to take their fees until you close your account with them, which might incur additional administration costs in itself.

Some will just keep taking fees until there’s nothing left in your account.

Either way, your saving are being diminished.

It seems that out of
desperation people
want to think a sudden
‘lucky winning streak’
their super
might experience
from time to time
is going to
‘save their super’.

Don’t be fooled by news about ‘booms’ in the stock market – or expect them to boost your super account balance.

They’ll have little or no effect on your super if what’s ‘booming’ is not what your fund is invested in.

And ‘booms’ generally don’t last long.

So even if your savings are ‘booming’ this week – no-one knows what they’ll be doing next week or next year.

Any gains made in a ‘boom’ can evaporate in an instant in just the same way they appeared – and generally do.

Consider this:

What goes up
ALWAYS comes down.

Superannuation fund managers
have a proven history of
NEVER being able to predict
so are never able to protect
the savings of their members
when a stock market
crash/correction  happens.

The reality is,
No-ONE can PLAN for retirement
by using the ‘stock-market’.

Fund ‘managers’ seem to like to give the impression any ‘recovery’ in your super is down to their good ‘management’.

But it CAN’T BE

Fund ‘managers’ can’t tell you wha the ‘market’ will be doing NEXT WEEK – LET ALONE in 5-10-20-40-50 years time when you’ll be wanting to retire.

In other words, if you have your savings ‘invested’ in the share market it can only mean you’re letting other people GAMBLE with your future financial security.



Maybe if you do experience unexpected ‘growth’ in your super fund it’s a good time to take your money off the table and walk (away).

But if you’re not managing your OWN super you CAN’T WALK AWAY and preserve it’s gain, (if it ever makes one).

Because you’ve given away all control of your savings to your fund ‘manager’ and you’ll have to just leave it in your super fund.

And while it’s there it’s fund ‘managers’ will keep doing what they always do with it which is just keep ‘pushing the button’.

And just like PLAYING the ‘pokies’, whether you come out in front or not is NOT something ANYONE can control or predict.

Many super funds
make a big issue
about not paying
fees or commissions
to advisers.

The following is an excerpt from a major super fund’s financial statement, available publicly.


are people FORCED to save money in a savings plan that INFORMS THEM it’s going to LOSE MONEY for them?

The following is an excerpt from a major super fund’s financial statement, available publicly.

Negative returns every 4.1 years on average.


Shouldn’t ‘retirement savings plans be so secure they NEVER have a ‘negative’ return.

And if they do post negative returns and you add your losses to the fund’s fees, tax and then add the effect of inflation you’ll soon calculate your savings will find it ALMOST IMPOSSIBLE to catch up.

It begs the question …?


… pay fees to funds to lose money for you when you could just put your super into a savings account with a bank and likely NEVER get a negative return?

Can you imagine actually PAYING people you don’t know to lose your money for you when you can probably do a better job yourself for FREE.

While the following is from a different fund’s disclosure statement the fact is, as all funds are subject to the same market conditions and that many of them have the same investment advisers there’s generally little difference in ‘performance’  between funds from one year to the next.

Where on EARTH did this fund get a ‘growth’ rate of 8% from to do a projection of 45 years?


… do super funds
get away
with squandering
the money that people
try and save
(are FORCED to save?)
for the time they retire?

Easy to answer! ..


no-one seems to demand an explanation when their savings just ‘evaporate’ andno-one’s ‘responsible’ – it’s the ‘market’.

And a lot of people (choose to) think there’s nothing they can do about it anyway…. ‘it’s compulsory’- people just treat it like another TAX on their income.

‘Contributions’ are so efficiently deducted from their income they’re almost ‘invisible’.

Some people even think super contributions are something an employer has to pay on their behalf and that superannuation isn’t really their money they’re paying.

They consider their super fund payout is something like a ‘bonus’ they collect when they retire.

And all this makes sense.

Because, in many respects, (for as long as they’ve given their money to a ‘super fund’ to look after)… IT’s NOT their MONEY…

They think they can’t use it for anything, they have no control over it and they have no idea what’s happening to it.

And, other than a cursory look at the ‘start’ balance and the ‘end’ balance on their statement they have no interest in it.

That is, until they start to get nearer to retiring or laid off from work.

By then it’s too late for them and they retire from the workforce with only enough funds to last them a few years.


And as they don’t even see their contributions go ‘in’ they think they have no control about what happens to them.

They know they can’t spend them anyway and hope their super fund turns it into something sufficient to fund their retirement by the time they retire.

It seems most employed people gave less thought about the super fund their employer ‘joined them up’ for and sends their money off to, (and what it does with their money), than they do about what they’re going to have for lunch.

e.g. How many people leave employment and don’t even bother to ensure the contributions they made with their previous employer follow them to their next job?

Currently, there’s BILLIONS of dollars in ‘unclaimed’ super in various coffers – some of it might be yours.

This is particularly true of young people just starting out in the workforce who simply lose the contributions they’ve made in their early years of employment to the fees and charges imposed by the superannuation fund they was forced to ‘contribute’ to.

Then, when they realise their super’s a disaster it’s EASIER to BLAME THE SUPER FUND

‘It’s NOT MY FAULT my super’s a disaster’, ‘I ‘contributed’ for YEARS – it was the SUPER FUND didn’t ‘perform’.


‘I didn’t get to choose the super fund I was in my employer signed me up for it’


‘the market ‘crashed’ just before I retired and I didn’t have time to recover from the loss.’


While that may have an element of fact – the reality is if you’ve been putting money into super for years and it’s NEVER done anything to KEEP JUST KEEP SENDING MORE MONEY to the same fund to do the same with is INSANE!

And there’s no-one to blame about that except yourself.

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