Super fees: the quiet cost that decides your retirement

Your super fund takes a small percentage of your balance every year, whether the fund makes or loses money. That percentage looks tiny on a statement. Over a working lifetime it is the single largest predictor of how much you retire with.

A useful rule: every 1% in annual fees reduces a long-term balance by roughly a quarter. So a fund charging 1.5% versus an industry fund charging 0.5% can leave you with tens of thousands of dollars less at retirement — often more than the extra returns the expensive fund would need to generate just to break even.

Start with the product comparison on the MoneySmart (ASIC) website, which lets you compare funds on fees, returns and insurance side by side. Look at the 'investment fee' and any administration fees, and check for trailing commissions on old retail funds.

Returns matter too, but fees are certain and returns are not. A fund that beat the market last year may trail it next year; a fund's fee is set every year regardless. When two diversified options are similar, the cheaper one wins over decades almost by default.

Consolidating multiple accounts is free and immediate through myGov — and it stops paying multiple sets of fees and insurance. Just check the insurance in any account you close, so you don't lose cover you needed.

Finally, check your investment option. Many members sit in a 'balanced' or 'default' option without knowing what it actually holds. A high-growth option early in your career, when you can ride out decades of ups and downs, is often the right default for someone with 30+ years to retirement.