Retail Fund Managers' Fee Grab

Superannuation bank and retail super fund managers have been accused of “gouging” large fees from default superannuation funds ahead of a law change next year.

According to research by Rainmaker Information, retail fund managers will charge additional fees of up to $1.8 billion from not transferring people to the low-cost ¬default MySuper funds introduced in 2013.

In contrast, not-for profit and industry funds transferred all existing default members to the cheaper funds within the first full year in 2014. “Retail superannuation funds are still lagging with just 43 per cent of funds in accrued default amounts transferred across to MySuper products,’’ the research found.

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