How does your super fund stack up?
The 2015 Stockspot Fat Cat Funds report is a comprehensive analysis of over 3300 managed and superannuation funds. It names the best-performing funds over the past five years, called Fit Cat Funds, and the poorest-performing funds, the Fat Cat Funds. The report illustrates what is likely to happen to a 30-, 40- or 50-year-old's retirement savings if their superannuation remains in one of these funds.
With this year's results exposing 701 Fat Cat Funds, equating to over 20% of the report's total sample size, ANZ (OnePath) has the most Fat Cat Funds for the second year running, with a total of 277.
For those Australians whose retirement savings are tied up with one of the Fat Cat Funds, the impact could be immense. For instance, an average 30-year-old male in a Fat Cat Fund could pay close to $250,000 in fees by the time he gets to the retirement age of 67. A woman, same age and same fund, is likely to incur just over $200,000 in fees by the time she reaches 67.
Chris Brycki, founder of Stockspot, the business behind the report, says that, all things being equal, a 30-year-old who switched from a fund charging 2% a year to one charging 0.5%pa could increase the super they'll have at retirement by 41%.
"Most people pay no attention to their super accounts, especially when they're young, and end up in the default account chosen by their employer. Given you could lose up to $250,000 in fees to a Fat Cat Fund, it's definitely something worth paying attention to even if retirement seems a long way away," he says.