Fees most important super factor: survey

Fees are the most important factor for Australians when choosing a superannuation fund, according to Industry Super Australia (ISA).

A survey by UMR research, commissioned by ISA, found 74 per cent of 1000 respondents said fees were either extremely important or very important.

This was followed by performance history (64 per cent), investment flexibility (60 per cent), not-for-profit fund (54 per cent), Australian investments (48 per cent), technology (35 per cent), and ethical/green investments (34 per cent).

Related News:

The priorities remained the same even when broken down by generation cohorts.

ISA public affairs director, Matt Linden, said the survey results suggested a warning around the new disclosure rules that are to be implemented on 30 October. He said while promising transparency, the new rules would render fees charged by investment platforms opaque, and could mislead consumers.

“Consumers can have confidence that differences in net returns provide a solid indication of the investment strategies and the effect of the all up costs of a super fund,” Linden said.

“Unfortunately, with fee disclosure there is no simple and transparent way of comparing fees on various products across the entire system.”

Linden said Australians should not have to fear that product providers are potentially gaming fee and cost requirements, or be forced to pour through multiple disclosure statements just to be sure.

“As the financial watchdog, ASIC [Australian Securities and Investments Commission] needs to get these fee disclosure rules right for all Australians,” he said.

ISA also called on ASIC to delay its fee disclosure rules until the exemption on platform investments was overturned.




Related Content

FSU demands meeting with NAB CEO

The Financial Sector Union of Australia (FSU) has demanded to meet with the chief executive of National Australia Bank (NAB), Andrew Thorburn, after t...more

ABA argues against collective BEAR punishment

The Bank Executive Accountability Regime (BEAR) should apply to individuals ensuring multiple bank executives are not held responsible for the actions...more

Planners lack support for AFSL applications

While there is increasing interest amongst financial planners for establishing their own Australian financial services licence (AFSL), many have conce...more

Author

Comments

Comments

Grow up Australia, there are no free lunches!

...and what a travesty that our incompetent & uncaring (possibly biased) regulators don't enforce complete transparency on all fees and their purpose paid by all funds, including the ISA.

Add new comment