The 2015 Stockpot Fat Cat Fund Report has taken aim at higher fee funds, and claimed that most of today's 30 year olds will not be able to live in retirement without relying on the Age Pension.
“It’s terrifying to think that most 30 year olds will not be self-sufficient at retirement. To have a modest retirement, the Association of Superannuation Funds of Australia estimates a couple needs $34,051 per year to cover living costs," Stockpot CEO Chris Brycki said.
Brycki said a couple aged 30 with a combined income of $120,000 in 2015 will only have $23,104 per year in retirement if they remain in a fund with high fees. He said the average 30 year old couple would also pay close to $450,000 in fees by the time they reach retirement.
Brycki said the report also identified the super providers with the highest fees.
“With ANZ (OnePath) taking the cake for the second year running with the most ‘Fat Cat Funds’, followed by CommBank (Colonial First State), AMP
/AXA, Westpac (BT) and NAB (MLC), consumers are paying over $790 million in fees every year to poor performing funds. Also, it may shock some, but 72% of the ‘Fat Cat Funds’ come from the big four banks or AMP," he said.
A new report claims that 50% of Australians under the age of 40 won't have enough money to retire, despite the rise in the super guarantee.