The decision of AustralianSuper to implement a freeze on membership fees effective July of 2011 until 2014 provides a major advantage for members who are nearing retirement.

However, it may elicit inquiries from Australians about the costs associated with the Superannuation fund.

Until now, a big number of citizens are not yet fully aware of the kind of fees that the super fund charges as well as the effects of these fees which can accrue to a hefty amount and lessen retirement savings.

A report from the Australian Financial Review mentioned that the Superannuation fund, Australian Super has put on hold fees for more than 90 percent of its 1.8 million members in an attempt to put pressure on its rivals in the cutthroat industry.

Ian Silk, chief executive officer of AustralianSuper has announced that the administration cost of $1.50 will not be adjusted for the next 3 years for members.

This, however, will not include corporate and pension divisions.

The AustralianSuper pension benefits include low fees, long-term investment performance, flexible payment options, tax-free investment earnings regardless of age, tax-free pension payments for members with 60 years of age and above, as well as a choice of 15 investment options.

The fund agreed to this repositioning following a five-year strategic review which revealed that its risk reserves have reached 17 per cent more than the required amount.

Silk has indicated that the Fund is amenable to extend the freeze and continue to emphasize the issue on fees.

"Downgrading charges is one way of showing our commitment to the improvement of the industry," he explained.

The federal government has already reiterated that the superannuation industry should contribute to higher retirement savings through greater efficiency and lower fees.

Financial Services Minister Bill Shorten issued a statement recently that "it is in the national interest to urge Australians to save more for their retirement," the Herald Sun reported.