The biggest industry superannuation funds are spending nearly 20 per cent more on administration costs than they were three years ago, dashing hopes that rapid growth and industry mergers would result in efficiencies that would be passed on to customers as lower fees.

Analysis of the latest administration and operational expenses data from the prudential regulator show the eight biggest funds’ costs jumped by 18 per cent on average from 2020 to 2023, due in large part to greater compliance costs and investment in technology and customer service.