Financial planners more willing to recommend industry super funds
More financial planners are recommending that their clients direct their investments to industry super funds, according to new research released by Roy Morgan.
The research, contained in the Roy Morgan Superannuation and Wealth Management Report, found that in the 12 months to June last year, 10 per cent of all superannuation products that switched to industry super funds came through a financial planner.
It said this represented an increase from the 7 per cent recorded in the prior 12-month period.
The Roy Morgan research also revealed that most people choosing to switch superannuation funds were seeking financial advice before doing so.
It said that almost two thirds of those thinking about switching superannuation sought some sort of financial advice when doing so, with 42 per cent relying on a professional such as a financial planner or accountant, while 39 per cent sought advice via their employer.
The research also revealed the continuing importance of employers in the broader superannuation dynamic, with the research revealing that employers continue to be the primary channel that Australians rely on when deciding on their superannuation fund.
It found that over the past five years, approximately 85 per cent of superannuation products were obtained through the employer, while only approximately 11 per cent relied on a financial planner or financial adviser.
The research also revealed that while investors were generally happier with the performance of their managed funds, their satisfaction with the performance of their superannuation funds had not significantly improved since the global financial crisis.
It found the level of satisfaction amongst members who held a managed fund (excluding superannuation) had continued a steady growth since the GFC, with 63.9 per cent satisfied with the financial performance in the six months to June 2011.
It said the proportion of those dissatisfied had also continued to decline and in the six months to June 2011 was only 14.2 per cent.
The research found that superannuation satisfaction had improved since the GFC but remained low, with the result that in the three months to June 2011, the proportion of those satisfied with the investment performance of their superannuation was only 54 per cent - a small improvement from the low point of 48.9 per cent recorded in the first quarter of 2009.
It said current market conditions were likely to see this begin to decline.
Amongst the major wealth management brands, the research found NAB/MLC had emerged as the highest rated group, while AMP/AXA were the most likely to encounter switching by members.
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