Consumers confused by industry and retail funds
Consumers are confused by the difference between retail and industry funds, according to a CANSTAR analysis.
The analysis of 77,000 visitors that actively searched for specific superannuation funds found the other hot topics for consumers were super fees and life insurance within super.
CANSTAR wealth manager, Paul O'Connor, said it was quite interesting the most popular individual super article was explaing the difference between industry and retail funds.
"Given the amount of effort the fund groups spend promoting their product offerings and structures, it seems there are still many workers unsure of the difference between the two. On the positive side though, it seems that workers are hitting Google to find out just what that difference is, so there is at least that level of awareness out there.”
Commenting on super fees, O'Connor said while most providers are offering competitive fees and premiums, some providers are charging substantially more than the average.
"Over time this can have a significant impact on a worker's retirement nest egg, unless that fee is offset with a correspondingly higher return," O'Connor said.
O'Connor noted that 23 per cent of people using the firm's online filtering tools were looking for a super fund that includes income protection.
"Anecdotally, many funds have been telling us that there is a far greater awareness of insurance cover through super now, compared to several years ago. This has no doubt contributed to the rising number of temporary disablement claims that funds overall have been experiencing," he said.
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