Members remain indifferent to choice
A new survey has reinforced superannuation fund member apathy towards choice of fund with findings that only one in 10 people are likely to switch funds when the new regime comes into force next year.
The ANOP Research findings are more stark than a recent AC Nielsen survey, which found 33 per cent of fund members would consider switching funds under choice, with around 17 per cent indicating they were extremely likely to make a change.
The latest statistics are derived from quantitative research on 25-64 year olds in the workforce conducted by ANOP last month, and were released yesterday at the Association of Superannuation Funds of Australia’s (ASFA) annual conference in Adelaide.
The survey found around 70 per cent of respondents were unlikely to change funds under choice, 20 per cent were indifferent while only 10 per cent said they were likely to change funds.
Of the one in 10 contemplating moving the main reason was fund performance, which encompassed fees and charges, financial performance of the fund, and the range of investment options available.
Those most likely to change appear to be retail or corporate fund members.
A positive message for many funds is that 76 per cent of those surveyed said they were happy with their existing fund, with the majority of satisfied customers in the public sector and industry fund sectors.
“The research results show that choice of fund is not high on most consumers’ radar. Yet almost half of those surveyed are aware of choice, which is a relatively high level of awareness for a policy that isn’t yet implemented,” ASFA chief executive Philippa Smith said.
“But being aware of choice is not the same as being informed - and the respondents did not feel well informed. Nearly six in 10 felt they didn’t have enough knowledge to consider changing funds,” Smith added.
With this in mind, ANOP Research director Rod Cameron said advisers were the key source of education for members on the issue of choice.
“Financial advisors top the list of information sources likely to be relied upon. Neither employers nor the media are particularly well trusted, coming as they do behind Auntie Doris and the bloke down the road. The super funds themselves have credibility as a source of advice, but clearly consumers want expert advice from a hopefully independent source,” Cameron said.
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