Superannuation Fees in Oz
May 1st 2007, 12:44 am
#1
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Joined: Jan 2007
Location: Toronto NSW
Posts: 120
Superannuation Fees in Oz
Hi
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us
Is this normal?
We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights
We really don't know what to do next.
Caz
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us
Is this normal? We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights
We really don't know what to do next.Caz
May 1st 2007, 2:04 am
#2
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Superannuation Fees in Oz
Hi
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us Is this normal?
We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights We really don't know what to do next.
Caz
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us
Is this normal? We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights
We really don't know what to do next.Caz
In the end I chose Virgin Super, as they are fund managed by Macquarie bank, and they only charge a 1% fee. According to my spreadsheet, assuming zero growth, just standard contributions, they will remain the most efficient fee option for four years, then I need to rethink, and move on elsewhere.
S
May 1st 2007, 3:11 am
#3
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Location: Toronto NSW
Posts: 120
Re: Superannuation Fees in Oz
Thanks for your reply S -Looks like we'll be doing some homework tonight!
Many super schemes do charge fees - some of them are pretty outrageous. Shop around for the best deal for you. I took a handful of the most recommended schemes and put together a cost comparison spreadsheet which calculated the fees over a 5 year period.
In the end I chose Virgin Super, as they are fund managed by Macquarie bank, and they only charge a 1% fee. According to my spreadsheet, assuming zero growth, just standard contributions, they will remain the most efficient fee option for four years, then I need to rethink, and move on elsewhere.
S
In the end I chose Virgin Super, as they are fund managed by Macquarie bank, and they only charge a 1% fee. According to my spreadsheet, assuming zero growth, just standard contributions, they will remain the most efficient fee option for four years, then I need to rethink, and move on elsewhere.
S
May 1st 2007, 3:20 am
#4
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May 1st 2007, 3:37 am
#5
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Re: Superannuation Fees in Oz
Hi
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us Is this normal?
We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights We really don't know what to do next.
Caz
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us
Is this normal? We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights
We really don't know what to do next.Caz
It depends on what you are able to negotiate. I pay 0.5% of the value of the Fund as an annual fee to the Planner. Quite often it's 0.75%.
The Super Fund's fees are on top of this. (I'm with Asgard)
What you have to remember with the planner is that you are paying for their expertise. They will review your Super performance annually and advise whether you should be selling down any investments within your Super and investing elsewhere. I am happy to pay for that expertise on the basis of the returns I have seen them get
May 1st 2007, 4:26 am
#6
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Location: Toronto NSW
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Re: Superannuation Fees in Oz
Are these the fees of the Planner or the Super Fund or both combined? I pay my Planner 1% of the value of each contribution and I have seen it as high as 5% for some clients.(I used to work there
It depends on what you are able to negotiate. I pay 0.5% of the value of the Fund as an annual fee to the Planner. Quite often it's 0.75%.
The Super Fund's fees are on top of this. (I'm with Asgard)
What you have to remember with the planner is that you are paying for their expertise. They will review your Super performance annually and advise whether you should be selling down any investments within your Super and investing elsewhere. I am happy to pay for that expertise on the basis of the returns I have seen them get
It depends on what you are able to negotiate. I pay 0.5% of the value of the Fund as an annual fee to the Planner. Quite often it's 0.75%.
The Super Fund's fees are on top of this. (I'm with Asgard)
What you have to remember with the planner is that you are paying for their expertise. They will review your Super performance annually and advise whether you should be selling down any investments within your Super and investing elsewhere. I am happy to pay for that expertise on the basis of the returns I have seen them get
Thanks for pointing that out.
It looks like an admin fee of 1.03% for investment managers, 0.96% for management expense Ratio and 0.62% for the financial planner that is setting it all up.
May 1st 2007, 4:42 am
#8
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Posts: 120
Re: Superannuation Fees in Oz
Does that sound right to you? There must be scottish blood in me, I dont like to spend if I dont have to and hate the fear of being ripped Off.
They are recommending The Navigator Personal retirement Plan,.
Caz
May 1st 2007, 5:08 am
#9
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Posts: 759
Re: Superannuation Fees in Oz
Remember that there is nothing stopping you transferring over to another Super fund in due course if you are unhappy with its performance. (Do check whether there will be any exit fees though.)
Have a look at this website
http://www.chantwest.com.au/cwPublic...MenuItemID=124
You'll see they give the Navigator one a 4 apple rating (highest being 5)
http://www.chantwest.com.au/cwPublic...MenuItemID=453
Hope that helps
May 1st 2007, 7:28 am
#10
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Posts: 5
Re: Superannuation Fees in Oz
Hi
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us Is this normal?
We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights We really don't know what to do next.
Caz
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us
Is this normal? We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights
We really don't know what to do next.Caz
If so you should consider transferring to whichever Industry super fund your Hospital or group is associated with. Industry funds have low fees and do not tend to charge for transferring in or out. I am in healthcare and my super fund is HESTA,"www.hesta.com.au". There are several large indistry funds not just HESTA have a look around. My returns so far have been good and a good choice of asset classes. You should at least look into this before you pay the FA for the transfer.
Best wishes
Chris
May 1st 2007, 12:01 pm
#11
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Posts: 413
Re: Superannuation Fees in Oz
Hi
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us Is this normal?
We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights We really don't know what to do next.
Caz
We have been in Oz for 4 months now and we are loving it so far.
We met with a finacial consultant prior to arriving and they recommended that we transfer our pensions to Oz and started the process off.
They refered us to a financial planner here who has planned a suppernnuation scheme for us. Looking at the fees we were shocked to see the upfront fee was 1.94% and then a yearly maintanance fee of around 0.62% for both of us
Is this normal? We both have a good pension to move over, I have worked in the NHS for 20 odd years and my Oh has a similiar size pension- which amounts up to a good % being taken away in fees.
Please could anyone help, its causing me sleep less nights
We really don't know what to do next.Caz
As the OP said the industry funds are the best,HESTA is one of them.The top performing funds are always the industry ones .Motor traders is the best one .As they pay no commission a financial planner is never going to recommend them to you,nothing in it for him/her.
There are no %age costs or trailing costs,the only cost should be the $1-$1.50 a week for management fees.
Check out selecting super.com.au or put ASFA into google (australian super funds assoc,if my memory is correct.)
There will probably be zero entry fees to transfer to an industry fund.
May 1st 2007, 12:30 pm
#12
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Posts: 413
Re: Superannuation Fees in Oz
Keep well away from financial planners and commission based sales advice.
As the OP said the industry funds are the best,HESTA is one of them.The top performing funds are always the industry ones .Motor traders is the best one .As they pay no commission a financial planner is never going to recommend them to you,nothing in it for him/her.
There are no %age costs or trailing costs,the only cost should be the $1-$1.50 a week for management fees.
Check out selecting super.com.au or put ASFA into google (australian super funds assoc,if my memory is correct.)
There will probably be zero entry fees to transfer to an industry fund.
As the OP said the industry funds are the best,HESTA is one of them.The top performing funds are always the industry ones .Motor traders is the best one .As they pay no commission a financial planner is never going to recommend them to you,nothing in it for him/her.
There are no %age costs or trailing costs,the only cost should be the $1-$1.50 a week for management fees.
Check out selecting super.com.au or put ASFA into google (australian super funds assoc,if my memory is correct.)
There will probably be zero entry fees to transfer to an industry fund.
The info on selecting super is rainmaker,they will give you the 1,3 and 5 yr return of each fund,go into default section.Hesta should be in the top 10,it is a decent fund.The Hesta web site should give you the costs and if it is a good one a breakdown of where they have put your money,EG OZ shares 40%,world and US 30%,fixed interest 20% etc.If it is a really good one they will give you a breakdown on shares you will hold too.Your oz shares will be heavily tilted towards the banks as they make up around 26% of the index.
May 1st 2007, 9:42 pm
#13
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Re: Superannuation Fees in Oz
If you're transferring a UK Pension, the Aussie fund will have to be a QROPS fund and you won't be able to transfer out again.
You will also need to check whether any industry funds such as HESTA are QROPS approved.
May 1st 2007, 9:56 pm
#14
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May 1st 2007, 10:22 pm
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Re: Superannuation Fees in Oz
Doen't look like many, if any, industry funds on there