Women disadvantaged by super choice

By Mike Taylor

Working women stand to be particularly disadvantaged by the implementation of the new choice of fund regime, with many potentially unaware that advisers receive commissions for recommending certain superannuation funds, one of the country’s biggest industry funds has warned.

Health and community services fund HESTA has released national research showing that 64 per cent of women do not think they know enough about superannuation to choose a fund, with women aged between 15 and 29 being particularly affected.

Commenting on the research, HESTA chief executive Anne-Marie Corboy said that with the deadline for the implementation of choice looming it was alarming that so many women were saying they did not know how to make the right decision.

Corboy pointed out that under the choice legislation, workers would have 28 days from July 1 to choose a superannuation fund.

“If people don’t educate themselves and make an active choice, they could find themselves in a default fund that doesn’t suit their needs,” she said.

Corboy said the HESTA research had found that 55 per cent of men and 58 per cent of women were turning to financial planners or accountants for superannuation advice and people needed to understand that some of these advisers received commissions for sending members to certain funds.

“It is important that consumers learn how to compare funds independently and start preparing now to avoid making hurried investment decision that will have a major effect on their retirement incomes,” she said.

Corboy said that in coming months people would be bombarded with marketing material from the retail superannuation funds trying to woo members away from industry funds.

“The challenge for women especially will be to concentrate on the essentials such as the security of their money, low fees and charges, returns and a fund that understands a woman’s life circumstances,” she said.