One of the of the biggest financial problems young people face is low super balances being eroded by fees.
Lots of young people get their first job over the summer holidays. Most will just leave it up to their boss to choose a super fund for them.
At the end of the holidays they might have a few hundred dollars in their super account. The super fund then charges them fees to manage their account, as well as other costs like life insurance. Because their balance is low, the fees and costs can quickly erode their super balance.
This can repeat with each summer job, especially if they open a new fund with every new job. Each summer a new account is opened, a small balance is deposited and the balance is eroded by fees.
It’s a problem experienced by too many young Australians.
Our solution is zero fees for balances under $1,000.