No matter what type of superannuation fund you may choose (SMSF, retail fund or industry fund) there will be costs associated with the administration of the fund. Such costs will include administration and accounting costs as well as investment management fees.
One major benefit of a SMSF is that the more you have invested – the more you save on costs!
Even better, as you move from the accumulation phase to the pension phase, the implementation of an estate planning strategy is much easier and more cost effective with an SMSF. In addition, under a traditional retail or industry fund, assets are ‘pooled’ with other investments and when assets are sold down to provide funds for pensions, higher transaction costs are incurred. Such costs are significantly less in a SMSF.