Retail superannuation fund managers will end 2015 on a low note, with research revealing that more than a quarter of fund members are "likely" to move to a new fund within five years.
A report by CoreData found that high fees and poor investment returns were the key factors driving retail super fund members to consider switching to an alternative fund.
CoreData principal, Andrew Inwood, said the results, which reported that 25.6 per cent of retail fund members were likely to switch to another retail fund, and 21.8 per cent were considering moving their super to a self-manager super fund (SMSF), was not all bad news.
"On face value, these findings are probably not what super funds want to hear," he said.
"However, stronger switching intention actually presents growth opportunities for funds if they are able to demonstrate value and utility to set them apart and attract those who are discerning with their super."
The research found that one in 10 respondents were considering a move to another APRA fund in the next 12 months, while 15 per cent said they were likely to switch to another fund within five years.
Almost eight per cent said they were considering moving to an SMSF in 2016, while just under 16 per cent reported that they would look at the possibility of switching their super to one within the next five years.
"The report reveals that competitive fees are crucial to both retaining members considering an SMSF and attracting members from SMSFs," CoreData reported.
"For those considering a move to an SMSF, the vast majority (81.6 per cent) are likely or very likely to stay with their current fund if they paid much less in fees. Furthermore, more than three in five (62.7 per cent) SMSF members are likely or very likely to close their SMSF and move to an APRA fund if they paid much less in fees."