UniSuper halves admin fees for 42,000 members

UniSuper will halve its asset-based administration fee for the Flexi Pension retirement product starting July 1.

More than 42,000 retired members in the product will pay a fee of 0.08% from the current rate of 0.16%.

"Our ability to offer this significant fee reduction reflects the ongoing growth of our pension products and efficiency improvements driven from within our in-house administrative team," UniSuper chief executive Peter Chun said.

UniSuper said the change will help Flexi Pension members save $496 per year on an average. For some members, savings can go up to $625 in a year. For Flexi Pension account balance of $500,000 members will pay total fees and costs of $2696, almost half of the average pension fees of $4900.

UniSuper added the reduction in fees will further help retired members achieve their goals.

"With Australians facing increasing cost of living pressures, this is great news for members within our Flexi Pension product. Based on our modelling it means that they could have more than $5000 extra in their accounts through their retirement thanks to this change," Chun said.

The Flexi Pension option allows members to access super as an income stream and make lump-sum withdrawals. UniSuper said this can be a good option for members who have turned 65 or have reached their preservation age and have retired from work.

"We are incredibly proud of our retirement offer to our members - outstanding investments, access to quality, professional advice and industry leading member services and digital tools," Chun said.

"It has always been a high-quality offer and now we can provide it at an even more compelling price."