Super fund members want free advice
Members are demanding advice and communication from their superannuation funds if they want to be retained but they only hear from their fund once a year or less, CoreData said.
In its 2014 Member Retention Report, CoreData found Australian Prudential Regulation Authority (APRA) funds that have self-managed super fund (SMSF) services, good communications and free advice are more likely to retain members.
Most respondents are not willing to pay for advice, with 78.8 per cent wanting advice through an online channel, while 75.6 per cent said they would not be ready to pay for this.
It also found providing free education is something members value in APRA-regulated funds, with 35.6 per cent respondents saying they want this.
CoreData also found retail super funds are most susceptible to losing members to the self-managed super fund (SMSF) sector, even as member intentions to switch funds drop.
Intentions to change funds dropped year-on-year, with only 6.7 per cent of respondents likely to switch to another APRA-regulated fund in the next year, down from 10.2 per cent in 2013.
Over a five-year period, 13.9 per cent intend to switch, compared to 20.7 per cent in 2013.
While intentions to set up an SMSF is also down, 4.8 per cent of retail fund members are most likely to set one up in the next 12 months, while 17.8 per cent intend to do so in the next five years.
Overall the intention to establish an SMSF among all members is down, with around 4.1 per cent likely to set up one in the next 12 months, down from 6.9 per cent in 2013, while 15.8 per cent are likely to set one up in the next five years, down from 22.9 per cent in 2013.
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