Aware Super cuts fees for retiree members

Aware Super is shaving up to 25% off administration fees for its retiree membership.

The $190 billion fund is reducing the annual administration fee for retirement income and retirement transition members from June 1.

The fee will drop from 0.23% of a member's balance to 0.17%. At the same time, the maximum annual admin fee on a retirement account is dropping to $1300, down from $1500.

This could equate to a 25% cut or, for the average retiree member, a decrease of $225 in the first year, the fund outlined.

Members who open a retirement income account may also be eligible for a tax-free bonus of up to $12,350, it added.

"Aware Super is dedicated to helping our members reach their retirement goals and keeping fees low is one of the key ways we can do that," Aware Super group executive member growth Steve Travis said.

"We're now the third biggest superannuation fund in Australia and we invest $190 billion on behalf of our 1.2 million members. We want to share the benefit of our size and scale by passing fee reductions on to our members. In the first year alone, this cut will save our retired members a collective $18 million in fees.

"Projects such as our three-year digital transformation program, completed in 2023, are delivering real benefits for all our members, including lower costs, better services, more personalised advice and a stronger fund overall."

Aware Super said the change sees its fees now $600 less than the industry average and will save retirees about $3100 over the course of retirement.