Superannuation

Is your do-good super fund bad for you?


Young workers following their best intentions could be ending up with some of the most expensive deals in superannuation, industry sources are warning.

YOUNG Australians wanting their superannuation savings put to good use might be heading to low-funded retirements, sections of the industry are cautioning.

The marketing of “ethical” superannuation funds is attracting more and more young people to schemes which boast they don’t invest in fossil fuels, and support endangered environments and don’t invest in any company associated with weaponry

Other funds, including those offer ethical investment options, are concerned they are being ignored, with older savers soon to reach retirement.

However, some of these so-called moral schemes charge higher fees than mainstream competitors, meaning retirement pay-offs could be cut by hundreds of thousands of dollars.

The fees can range from around $270 a year on $50,000 in a mainstream scheme to over $1000 a year in a branded ethical fund.

Youn…

Read the full article at: http://www.news.com.au/finance/superannuation/mainstream-funds-worried-by-competition-from-moral-schemes-attracting-young-workers/news-story/7ebc3b012ba6706417d4d1d5a9b5e8f8

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