Most Australians believe all superannuation funds should be not-for-profit with all returns to members rather than split with shareholders, according to Industry Super Australia (ISA).
In an Essential poll of 1000 respondents, commissioned by ISA, 31 per cent trusted that banks would ensure the super system worked in their best interest, compared to Federal Government at 38 per cent, Fair Work Commission at 61 per cent, and industry super funds at 69 per cent.
ISA chief executive, David Whiteley, said when it came to super banks were legally required to act in the best interest of their customers and that most Australians did not believe that they did.
“Consumers know aggressive cross-selling of advice, insurance and super is designed to boost shareholder profits rather than leave them better off,” Whiteley said.
“The banks’ relentless lobbying to remove consumer default protections could result in people ending up in under-performing funds and a nest egg that’s tens, even hundreds, of thousands of dollars short.
“Australians have told us what they think – they don’t trust the banks and believe their culture and profit motive are at odds with the purpose of super.”
The survey found 58 per cent believed banks would use the compulsory nature of super to exploit fund members, and two-thirds believed that banks were too powerful and giving them more of the super market would make the situation worse.
A futher 57 per cent said they wanted a small number of high quality super funds run by trusted providers rather than a large menu of bank offerings.
