Big Four bank announces aggressive low-fee super strategy

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This major player has claimed that its new super offering redefines superannuation options for Australians by being priced at half the average super fund cost.

According to ANZ, its “innovative superannuation solution”, which was launched today at an event attended by Superannuation Minister Bill Shorten, automatically adjusts to a customer’s stage in life and costs around 50% less than most existing schemes.

Central to ANZ’s claims are the product’s single investment fee of 0.5% pa, and an annual administration fee that’s capped at $50 “with no commissions and no hidden charges”.

The bank has claimed that customers with $50,000 of superannuation today would save around $220 a year when compared to industry funds, and $416 a year when compared to the average Australian superannuation fund – assuming continued contributions are made. This would equate to $29,000 and $55,000 over 20 years respectively, said ANZ.

“ANZ Smart Choice Super offers customers greater convenience and choice at half the price of the average superannuation fund. It will redefine the way Australians plan and save for their retirement,” said ANZ Global Wealth and Private Banking CEO Joyce Phillips.

“Australians have been telling us they’re frustrated at not having control over how their super is invested, the lack of transparency of their returns and what fees they are being charged. ANZ Smart Choice Super will change this by giving them the convenience and choice they are looking for at a market-leading price.

“It gives our customers access to quality investment options that can be matched to their life stage, full portability between employers and industry leading life insurance products.”

The product will be available from 1 December.

More stories:

Bank launches zero fee super fund, targets advisers

  • ACCC on 22/11/2012 12:28:06 PM

    Time for new compare the pair ads?

  • Trina on 22/11/2012 1:01:39 PM

    On ANZ's website fees are shown as 0.95% for all options (except cash which is zero). No idea where the 0.5% mentioned in this article appears unless they are just slow to update their website?(copied and pasted below:

    The fees you pay are simple and competitive – nothing hidden and no commissions.
    Administration Fee: $6.00 per month.
    The Investment Management Fee is nil for ANZ Smart Choice – Cash and 0.95% on all other investments

  • Maria worthington on 22/11/2012 2:26:01 PM

    What investment choices are there within the fund

  • Conservative accountant on 22/11/2012 2:39:53 PM

    How long will it take to get your money out ... 2 weeks .... a month? More control with SMSF. I have my doubts already.

  • Ben on 22/11/2012 2:45:55 PM

    Ha! What a typical comment from an accountant. Of course a SMSF is better because you get paid for setting it up and doing the audit and tax returns. Therefore a SMSF must be better!

  • Michael on 22/11/2012 2:55:50 PM

    Well since there at least 100,000 people in Australia who know the economics of what is involved, once of which should be Bill Shorten, you have to wonder how this could go unchallenged. There are no free lunches and you will pay.

  • GAB on 22/11/2012 2:56:01 PM

    as of 1 Dec the admin will be 0.5% i just read, so that is correct. Probably a good product for those with smaller balances. Standard investment options, growth balanced etc...all dumbed down based on on what decade you were born in. If only it was was really that easy eh?

  • Mark on 22/11/2012 3:00:05 PM

    Their investment returns, nil advice and hidden costs is shocking. I am with Perpetual Private and sure a pay a slightly higher premium fee but I know I am manged but one the best wealth organisations in the country.

  • Leo on 22/11/2012 3:15:56 PM

    SMSF is good ify ou know how to trade shares. Certainly not because your accountant says so.
    The cheap super funds are a competitive response to industry super funds. Bill Shorten's aim is to bring more business to industry super funds. He is too short sighted to see the side effects. In any case having cheap options doesn't do any harm to anyone

  • Conservative accountant on 22/11/2012 3:22:06 PM

    What a short sighted view ... we do it because we are looking after our client and providing them with strategic advice. They have a choice of paying fees or not.

  • Mark on 22/11/2012 3:53:33 PM

    I agree Mark, I was with a similar cheaper alternative superannuation fund not long ago and I receive no advice whilst receiving negative returns on my savings.
    You get what you pay for! Investing your life savings with a company that has proven to show consistent positive results and knowing your investments are "tailored" to your needs is worth every penny.

  • Tony on 22/11/2012 5:53:45 PM

    To conservative accountant, can I please have one of your fee free SMSF's with some strategic advice thrown in fee free as well please?

  • Conservative accountant on 23/11/2012 10:02:46 AM

    Tony there are options in this world .... who said anything about fee free. Listen and you might learn. It is about the client not you.

  • Jack CFP on 23/11/2012 2:11:47 PM

    To coservative accountant
    I met client yesterday who has $200,000 sitting in TD. Accountancy fee was $1,450 and audit fee $600... Ouch!!! When I asked client what made him decide to establish SMSF he replied "my accountant recommended it"... Looking after client, hahah!

  • Phil on 23/11/2012 3:51:00 PM

    To Conservative accountant - 'They have a choice of paying fees or not'. This statement implies you are providing a service to clients while giving them an option to pay audit fees and tax return fees. I agree with Tony in that you can set a SMSF up for me and i will consider paying your fees or not.

  • insider on 3/01/2014 6:03:34 AM

    In response to the conservative accountants original whinge about the time taken to rollover, the new superstream legislation means it will take 3 days. I woukd argue that us faster than any smsf could do

  • Innocent Observer on 6/01/2014 2:11:06 PM

    This is what gets my goat about the industry. With every passing day we reinforce the message that everything is about cost. Then we try to justify our existence.

    Well, you know what? Financial advisers add value. To their clients they provide direction, help them establish what their goals are and then guide them through the minefield of legislation and regulation to provide a clear game plan that allows them to sleep at night confident that they "have a plan". Every day advisers bring to the table their insight and experience, their knowledge of legislation and rules (current and proposed), and their access to resources to get the best result for their client on time, and on budget.

    Sure, the journey (in most cases) involves products. And products (and advice) cost money. But so what?

    I would presume that on all aspects - including product - the vast majority advisers seek to get maximum value for their clients, but value does NOT mean lowest cost.

  • Innocent Observer on 6/01/2014 2:25:37 PM

    @Conservative accountant - no need to throw barbs at Tony, he makes a valid point.

    Accountants are, in large numbers, pushing the SMSF line way past where most financial advisers would consider reasonable. The example Jack mentions is something we have come across half a dozen times in the last year (though accounting fees were a bit north of the $1,450 his client was paying).

    In summary there is a heap of bad advice floating around when it comes to SMSFs. For some clients it is a great structure, but for most (and, sadly, most of the SMSF members we meet) it is not.

    *Incidentally, even if ANZ's new account did take a month to "withdraw" money from (which from @insider's comments it would not), why would that be a problem? It is superannuation, after all.

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