Consolidation the big outcome of choice
Between 4,000 and 5,000 Australians a month are making choice of superannuation fund, according to data released this week by Sydney-based administration platform provider, InvestmentLink.
InvestmentLink's data has also revealed that almost a quarter of new employees are opting not to join an employer's default fund but, rather, deciding to choose their own funds.
Instead, they are redirecting contributions to an existing fund.
The InvestmentLink research confirms that people are steering clear of self-managed superannuation funds (SMSFs), suggesting that fewer than 3 per cent of members have chosen SMSFs with the vast majority choosing established retail and industry fund brands.
The research also confirms that many Australians are using the new choice of superannuation fund regime to consolidate superannuation accounts by not opting for a new account when they start a new job.
It said much of the impact of choice was attributable to employees who had changed jobs since July 1, last year.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
