Hi, I have a small balance, less than $15,000, in ING living super that my husband contributes to. I don't work and am 61. I would like to know if anyone can advise me of any better super accounts other than ING Living super now that fees are being imposed. I don't need any of the insurances. I have tried to compare with Canstar but the age brackets only go up to 59. I have been focusing on fees and performance. If I can draw on some of your expertise regarding super accounts I would be most grateful.
Best Super Account for Small Balance?
simplyme on 08/05/2017 - 18:36
Last edited 08/05/2017 - 18:48 by 1 other user
Last edited 08/05/2017 - 18:48 by 1 other user
Comments
0.5% pa is quite high considering some funds offer 0.1%. From memory, Rest and Sunsuper do.
Also as for investment compare the investment fee and pay attention to the difference between actively (and diversified) managed options and passively managed (index) options.It depends on the balance. If it is $15,000 then with ANZ it is $50 + $75(0.5%*15000) = $125 per year. Sunsuper charges $4 per week + 0.1% on the balance. Meaning it is: $208 + $15 = $223. Two times worse than ANZ.
$1.50 gross per week for Sunsuper mate…
$4 is Income account according to their website.Chant West is a great research tool to use. Instead of paying for it, some funds will grant you access to it for free if you enter Chant West via their website.
@Alister: Thanks for the correction! You are right, it is $1.5 per week. However, it looks like the fee that you mentioned (0.1%) is just another admin fee. They also charge investment fee of 0.39% and a performance fee of 0.09%:
https://www.sunsuper.com.au/members/investments/investment-f…Meaning that for $15,000 it is $1.552 + 0.1%15,000 + 0.39%15,000 + 0.09%15,000 = $165 per year.
Yet again, ANZ is cheaper. Please correct me if I am wrong.
Try again…
You aren't comparing apples with apples.
You are assuming that ANZ has no investment fee which is correct - if you choose their cash option. If you refer to Sunsuper's cash option it isn't much pa and that's where a rookie, like yourself, would give up and declare ANZ a winner. You would then be forgetting that funds offer different cash options - some are basic cash and some are enhanced cash. Compare returns (standard past performance disclaimer naturally applies).Rather than listening to randoms on the net, the OP needs to get financial advice or at least use the Chant West tool.
Also note what I said about actively managed options and the cost of index options.
*not financial advice
@Alister: You are incorrect mate. The fee of 0.5% with ANZ that I have already mentioned is the investment fee for a non-cash account. It is zero for a cash account.
Just for you, one more time:
ANZ: $50 admin fee + 0.5% investment fee and no other fees.
Sunsuper: $78 fixed admin fee + 0.1% variable admin fee + 0.48% investment fee.I think it is obvious that Sunsuper's fees are higher in total.
Also the OP is focused on not just fees but performance as well. Is basic cash with ANZ going to satisfy their performance expectations?
What if they invest in the cash option and then you remember there is something called inflation and CPI?
TIME TO GET SOME ADVICE
sunsuper, hostplus (lowerestest fee), aussuper
Just ran a generic report with a few different options, based on $15,000 and a balanced/moderate investment mix (which likely aren't the default investment choice if you are 61, however it provides a more like for like comparison).
ANZ Smart Choice Super did come out as cheapest. But obviously you would want to look into things further, namely any fees you or your husband might incur from splitting/spouse contributions. Seeking professional advice from a financial planner would be best :)
https://files.ozbargain.com.au/upload/210855/48866/quick_com…
Considering small balance, you need an account that has a low fixed fee, percentage fees are less relevant. I have been recently looking into this and it looks like ANZ Smart Super has the lowest fee of $50 pa + 0.5% pa.