MLC Super cuts admin, investment fees

MLC Super will cut administration and investment fees for members from October 1, with 511,000 members set to benefit from lower costs across its superannuation options.

The annual member administration fee will fall 23% from $78 to $60, reducing the fixed cost from $1.50 to $1.15 a week for eligible members.

Investment fees and costs will also fall across MLC Super's MySuper and Simple Choice options, with reductions of up to 0.07 percentage points a year.

MLC Super's flagship MySuper Growth portfolio, its largest option by funds under management, will see its investment fee fall from 0.69% to 0.67%, a year. The MLC High Growth option will also fall, from 0.85% to 0.83%.

Members invested in some MLC Fixed Interest and Property options will also see lower buy-sell spreads, with Fixed Interest spreads falling to 0.10% for both purchases and sales from 0.15% and 0.20% respectively.

Property spreads will fall from 0.30% for both purchases and sales to 0.20%.

MLC super chief executive Dave Woodall said the changes were intended to leave more members' money invested for retirement.

"We've reduced the headline fee, brought down a range of investment costs and made it cheaper for members to transact," Woodall said.

"Every dollar a member doesn't pay in fees is a dollar that stays in their account, compounding over their working life, to help grow their superannuation balance and give them confidence in retirement."

MLC super said most members would save $18 a year in administration fees, while a member with a $250,000 accumulation balance invested in MLC MySuper would save an average of $68 a year.

The changes will also simplify how members and employers make contributions, with members moving to direct debit and PayID, while employers will use Superstream.

"Confidence in super is built on people understanding what they are paying, what they are invested in and what it means for them," Woodall said.

"Collectively, these changes improve value for members while reinforcing our commitment to maintaining a competitive, efficient and contemporary product suite."