Australian Wealthtech Super Fierce has topped $116 million in “anticipated super fees saved” for its users after launching 5 months ago, according to a note from the company.
Super Fierce is a wealth advice platform and social platform that aims to help women close the “gender wealth and retirement gap.” It provides an advice platform that compares 500+ super funds and assists in switching to save fees while maximizing returns.
The company claims that the speed of growth is “clear evidence” of the demand and need for its services. The $116 million in anticipated savings are the result of the company’s algorithm locating the lowest-cost and best-performing super fund for individuals, corresponding to personal needs. Super Fierce enables increased savings by lowering high fees and combining better performance.
Super Fierce states that the average age of a customer is 36 years old, and 87 percent of the anticipated savings will go to female customers who achieved $125,000 in savings on average. To date, the largest average savings for any age group was $165,000 for customers aged 25 to 35 years. By comparison, the average for all customers is currently around $131,000 in lifetime anticipated fee savings.
Currently, the typical Super Fierce user is a woman around 30 years of age, working full-time, earning $75,000 to $125,000, and holding $45,000 in super. She is charged 1.05 percent per annum in fees by her existing fund, and will likely grow her super to around $835,000 by the time she retires at age 67. This means she will pay around $560 in fees this year alone, and around $452,000 in her lifetime if she makes no change to her super.
By using the Super Fierce service, the average fee in the funds is 0.22 percent per annum. Switching using Super Fierce results in a typical customer paying $118 in fees this year and around $205,000 in their lifetime.
The company states that after adjusting for inflation and the compounding impact of performance on the difference in fees in these two scenarios, this adds an extra $345 of income per week for the rest of life in retirement.
Trenna Probert, founder & CEO of Super Fierce, stated:
“When I launched Super Fierce, I set the audacious goal of saving Australians $100 million in unnecessary super fees in under six months. It was an ambitious goal, but why get out of bed for anything less than a life purpose that scares you a little?! Especially when it is all about creating positive change in this world. As a social enterprise, Super Fierce is on a mission to drive measurable social impact outcomes including our current goal of ending the gender wealth and retirement gaps. We envisage a world where women are not penalised financially for being born their gender, or for becoming a mother. We decided to start tackling this goal with super, because Australians pay an extraordinary $32 billion in annual fees to super funds – at least half of which is wasted on poor performing funds.”
Probert added that they will next take their strategy to address the prohibitive and costly process of investing, home ownership and SME funding.