Workplace saving schemes

While many of the fees associated with individual saving and investment products also apply to workplace saving schemes (such as a superannuation scheme) a workplace scheme will almost always cost less. This is because:

• There may be no entry fee or servicing fee.
• Investment fees are often lower – less than 1% a year compared to an individual product where you may pay around 2.25%.
• Your employer may pay some of the fees or even subsidise your own contributions.
• There may be side benefits of the workplace scheme, such as free or discounted death cover or access to other low-cost insurance products.

If you use an adviser (rather than your employer’s scheme) you should expect a greater choice of products as well as advice that may be more specific to your circumstances. However, you can expect to pay more in fees for those.

If the size of the fees is what matters to you most, see if you can save through your workplace scheme. If you are the employer, perhaps think about setting up a scheme. This is worthwhile even if you are the only member - it is also likely to cost you less in that case.