Almost three-quarters of Australians are seeking some kind of advice when they switch superannuation providers, says Roy Morgan.
In a report titled Superannuation and Wealth Management in Australia, Roy Morgan found the proportion of Australians seeking advice from a financial planner when switching funds had grown from 20.5 per cent in 2010 to 29.9 in 2014.
Of the people wanting to move to a major retail fund, 43.3 per cent sought the advice of a financial adviser.
This was well above the number of people wanting to move to an industry super fund with only 13.2 per cent seeking professional advice.
Roy Morgan also found that Australians looking to switch to a self-managed super fund, 71 per cent sought advice from a financial adviser or accountant.
Overall, the report noted that the majority of people seeking professional advice were those with higher superannuation balances and incomes.
“The median amount in superannuation for those using professional advisers is $102,000, compared to a median of just $44,000 among people not seeking advice,” a statement from Roy Morgan said.
“The difference between the two groups is not as great in terms of personal and household income.
“The average personal income of people using professional advisers is $79,000, while that of those not getting any advice is $69,000. The reason for this is that higher superannuation balances tend to be held by an older age group, which isn’t necessarily reflected in higher income levels,” it said.
Commenting on the results, Roy Morgan industry communications director Norman Morris said while more Australians are seeking advice than before, it is concerning that many are going without.
“With only around a third of those who switch their superannuation getting professional advice, combined with the considerable lack of engagement and understanding by many in superannuation, it is of some concern that they may miss out on appropriate advice for their particular needs,” Mr Morris said.
The report was compiled off a survey of over 250,000 people over the last five years.