Access our news and insights

Stay up to date with the latest views and analysis from the team.

SuperRatings   ⟩   News & Insights   ⟩   Media releases   ⟩   Small funds most exposed to low balance accounts
Gordon Toy

AuthorGordon Toy

DateAugust 2, 2018

CategoryMedia releases

Share

Smaller super funds have nearly 45 percent more low balance accounts as a proportion of total membership than the average fund leaving them most exposed to the Federal Government’s cap on fees for low balance accounts.

This is the latest data from superannuation research house SuperRatings who have assessed the impact to super funds from the Federal Government’s proposed 3 percent cap on fees for super accounts with balances lower than $6,000.

The SuperRatings analysis reveals that smaller funds (defined as funds with less than $2 billion of net assets) have around 38 percent of total accounts with a balance lower than $6,000. This is compared to 26 percent for all funds and 22.5 percent for large funds.

Small funds have the highest proportion of low balance accounts


Source: SuperRatings
Small funds are defined as funds with net assets of less than $2 billion, medium funds with between $2 billion and $10 billion, and large funds with more than $10 billion.

The prevalence of low balance accounts within smaller super funds is even greater below the $4,000 threshold. Nearly 34 percent of all accounts held with smaller funds have balances below $4,000 compared to 22 percent for the median and 19 percent for the largest funds.

Release ends

For more information contact:

Gordon Toy
03 9623 6373
Gordon.Toy@lonsec.com.au

Related stories

25 Oct 2018 - Voluntary superannuation contributions have eased slightly after approaching record highs as super members appeared to take a breather after riding the bull ...

Voluntary super contributions ease

By Gordon Toy Read now

20 Sep 2018 - Ten years since the collapse of US investment bank Lehman Brothers, Australia’s superannuation funds have accumulated over $1 trillion in retirement savings, ...

Don’t panic! What superannuation is teaching the post-GFC world

By Gordon Toy Read now

11 Sep 2018 - Leading superannuation research house SuperRatings is deepening its actuarial capabilities, with key new hires catering to further growth in its consulting ...

SuperRatings expands actuarial team

By Gordon Toy Read now