At least 550,000 Australians face significant termination fees on superannuation accounts purchased in the 1980s and 1990s according to the Australian Securities and Investments Commission (ASIC).

ASIC says exit fees are attached to many “legacy” superannuation accounts bought from life insurance companies before the introduction of compulsory super in 1993, but would not be incurred by new members.

Chairman Jeffrey Lucy says people whose superannuation accounts might be subject to these exit fees should check with their fund before deciding to renew, stop or top-up contributions.

“It is important that anyone considering moving out of these older legacy funds carefully weighs up all the costs, including the impact of the exit fees on their savings. The best option might well be to stay in the fund until the exit fee runs out,” he said.

Under the contractual terms of many products, that may not be until the account holder reaches retirement age or achieves a target account balance.