CareSuper vs AustralianSuper: How do fees compare? When comparing AustralianSuper and CareSuper fees, AustralianSuper has lower annual percentage based fees, with a 0.67% investment based fee, compared to CareSuper's percentage based fees of 1.00%.
Super is your money, and it's important to invest in ways to help it grow. As Australia's largest super fund, managing more than $274 billion with over 3 million members3, we're ranked as one of the top 20 pension funds globally4.
Positive investment option performance
AustralianSuper has a strong track record as a top performing super fund. The Balanced option ranks in the top two for investment returns over the last 10 and 20 years1.
With an annual administration fee of $447, Australian Super is quite cost-efficient compared with other superfunds as an option for Australians. It has also long been a top performer in the industry; over the last 10 years, has provided its members an average annual return of 9.14% on its My Super product.
CareSuper has 219,382 members, which ranks it 17 largest of 161 funds. In the 2022 financial year, the number of CareSuper members changed by -1%, which places them at 55 of 161 funds in terms of growth.
While Commonwealth Superannuation Corporation (CSC) is Australia's largest pension fund, platforms have the largest proportion of their members in retirement.
The average return over 10 years for AustralianSuper's Balanced option is 9.32% per annum to 30 June 20221. For the Balanced option for Choice Income accounts, the 10 year average return is 10.27% per annum. This financial year (1 July 2021 – 30 June 2022) has been one of market ups and downs.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
From 1 July 2023, the super guarantee increases from 10.5% to 11%.
In its annual awards ceremony on 17 May 2023, Chant West named UniSuper as its Super Fund of the Year for the second year running. In 2022, its first year as a public offer fund, UniSuper won the top all-rounder gong awarded by both Chant West and SuperRatings.
So, how much does one need to retire in comfort? If you're single, you'll need more than $500,000, assuming you own your own home, according to the Association of Superannuation Funds of Australia Retirement Standard. That figure is worryingly higher than the average super balance.
This obviously depends on what annual income you want to fund but if you want to be able to afford a comfortable retirement—which is an income of just over $48,000 a year for a single according to the ASFA Retirement Standard—then you need a balance of at least $500,000.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax. You can only make one withdrawal in any 12-month period.
ASFA estimates people who want a comfortable retirement need $640,000 for a couple, and $545,000 for a single person when they leave work, assuming they also receive a partial age pension from the federal government. For people who are happy to have a modest lifestyle, this figure is $70,000.
According to a report by Schwab, to generate $100,000 in annual retirement income, you would need a retirement savings balance of at least $2.5 million assuming a 4% withdrawal rate.
As a general rule, most people will need 70% of their take home pay to maintain their lifestyle in retirement. And since we're living longer, which is great, your super may need to last for 30 years or more after you retire.
If you're in your 30s
If you're a man in your early 30s, the top three funds are: UniSuper. The Bendigo Superannuation Plan. Mercer Super Trust.
The shareholders are the Australian Council of Trade Unions (ACTU) (through ACTU Super Shareholding Pty Ltd) and the Australian Industry Group (Ai Group). The ACTU is Australia's peak union body and the Ai Group is Australia's peak employer association.
Understand how much you can contribute
These limits are called 'contribution caps'. You can contribute up to $110,000 each year in non-concessional contributions. If you have more than one super fund, all your contributions are added up and count towards your caps.