Key survey findings
Corporate superannuation funds feel largely immune to the impact of churn generated by choice of fund, according to a recent Deloitte survey.
The survey, conducted earlier this year, found that unlike industry funds, retail funds and even public sector funds, corporate funds did not perceive choice as being a threat to their membership base.
Commenting on the survey findings, superannuation partner with Deloitte Wayne Walker said choice was perceived as a threat by only a few of the funds surveyed.
He said there appeared to be a tendency for employees to say ‘no’ to a new employer’s corporate superannuation fund and to stay with their existing arrangements.
In another key finding, the Deloitte survey found transition to retirement pensions remained uncommon in the corporate superannuation space.
It found that almost 40 per cent of the funds surveyed did not provide any form of post retirement product even though members were indicating they might want to use them.
Walker said this represented a key threat to member retention and hence the longevity of the remaining funds.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
