Investors favour choice

Much like the politicians who represent them, retail investors have come out over-whelmingly in favour of the idea of choice of superannuation fund.

Much like the politicians who represent them, retail investors have come out over-whelmingly in favour of the idea of choice of superannuation fund.

The difference is that politicians cannot agree on the mechanics of a choice of fund system and have left enabling legislation gather cobwebs over the past five years as they battle ideologies.

According to a survey by Assirt, 83 per cent of retail investors think choice of su-per is either a great idea or at least a good idea. Less than one in ten thought it a bad idea.

But while investors may be supportive of super choice, not many of them know much about the actual legislation. Assirt’s survey found that just under a third of investors knew either a great deal or a fair amount on the super choice legislation. Males know more about the legislation than females with 36 per cent of males in-dicating they knew at least a fair amount —about the legislation compared to 23 per cent of females.

Assirt managing director Brett Sanders says the survey supports recommendations by the Senate Select Committee on super choice for an extensive education cam-paign.

“These findings would suggest that investors are supportive of choice but are not entirely aware of what it entails,” he says.

“The interesting question becomes whether they will exercise this choice when it becomes available and if so, what assistance they will seek in doing this.”