The Financial Planning Association (FPA) will continue to push for the introduction of choice of superannuation fund legislation after releasing a report showing that 71 per cent of Australians would like the ability to choose their superannuation fund and 88 per cent would like to keep their superannuation fund when changing jobs.
Compiled by Roy Morgan Research on behalf of the FPA, the report indicates that Australians are relatively happy with their current superannuation fund, but would prefer to have the power of choice and portability.
The report showed that 72 per cent of respondents currently had their superannuation fund chosen by their employer, while 25 per cent already had the opportunity to choose their superannuation fund for themselves.
Of those respondents currently unable to choose, 48 per cent said they would be likely to change to a different superannuation fund at some time in the future given the choice.
Despite this statistic, 75 per cent of respondents indicated they were currently happy with their employers’ choice of superannuation fund.
FPA chief executive Ken Breakspear says that all Australians have the fundamental right to choose their superannuation fund due to its impact on their financial future.
“If it is the employee’s money, then employees should have the right to decide where it is invested,” says Breakspear.
Breakspear added that compulsory superannuation contributions would not be enough to ensure adequate retirement incomes into the future. He said choice of fund would increase consumers’ interest in saving for retirement as well as in making voluntary contributions.
If choice of fund were introduced, the report shows that fees and chargers would be of high concern to individuals in comparing funds, with 94 per cent of respondents rating fees “important” or “very important” in their decision.
Only 29 per cent believe that fees and charges would increase if choice of fund were introduced, with 55 per cent believing they would decrease or remain stable.
A result of a survey of 533 Australians, the report showed that 64 per cent of respondents thought that financial planners were a worthwhile source of advice on superannuation.
Of those respondents likely to change funds given the choice, 62 per cent indicated they would be likely to consult a financial planner, with 69 per cent of these individuals preferring a one off flat fee rather than commissions.
