Super switching intentions revealed

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Superannuation switching intentions are highest among retail fund members, new research from Roy Morgan shows.

Overall, 5.1% of superannuation products are ‘very likely’ to be switched in the next 12 months, which is up marginally from 5% a year ago.

For retail funds, the figure is higher at 6.7%, compared to industry funds with 4.8%.

The major contributors to the high level of retail superannuation fund switching intentions are those that belong to the AMP Group, with 7.8% of members intending to switch, followed by the ANZ Group at 7.5% and NAB Group at 7.2%.

Intended switching from industry funds overall is below the industry average, with 4.8% of members considering it ‘very likely’ they would do so.

Of the industry funds, Hostplus has the highest proportion of its products ‘very likely’ to be switched at 7%, followed by Care Super at 6.5% and Rest Super at 6.3%.

Intended switching from AustralianSuper, the largest industry fund in Australia, is comparatively low at 3.5%. 

Self-managed super fund members are among the least likely to switch, with only 1.9% considering it ‘very likely’ to switch in the next 12 months.

Roy Morgan communications director Norman Morris says overall intention for switching superannuation products has remained fairly steady over the past few years.

“However at a fund level, all three of the top retail funds with the highest intended switching have reported a higher proportion compared to a year ago.

“Apart from a change in jobs, the main reasons people give for switching their superannuation products to another fund is investment performance, as well as fees and associated charges.

“These monetary-related reasons appear to be more common than reasons relating to brand or service.”

Morris says the report shows industry fund members are less involved than those with other superannuation funds in planning for their financial future, but most agree they should do something about it.

“The key to retaining these members is not only performance but a detailed understanding on how to communicate and educate the different segments within the funds customer base.
 
The research can be viewed in the “Superannuation and Wealth Management in Australia” report. There were 36,796 super members surveyed for the research.

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