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Super switching intentions on the up

Super switching intentions on the up

Tim Stewart
— 1 minute read

The number of Australians willing to switch superannuation providers is continuing to increase, with more than one-third of members willing to ditch their current provider, according to a new survey.

According to the third annual Financial Services Council/ING Direct Your Future Super Survey, 35 per cent of Australians say they would be likely to change their fund provider in the future.

This is up from 27 per cent in 2014’s Direct Your Future Survey, and 19 per cent in 2013.

The top reasons driving the increased likelihood of switching were a desire for lower fees (52 per cent), better performance and returns (52 per cent) and an easier switching process (34 per cent).

A majority (61 per cent) of the 1,236 respondents to the ING/FSC survey estimated they pay under $500 per year in superannuation fees, while 5 per cent said they pay “no fees”.

However, one in five estimated they pay more than $1,000 a year in fees – and this includes both single fund holders (23 per cent) and multiple fund holders (21 per cent).

The survey also found that 68 per cent of Australians selected an employer default fund as their main super fund.

When it comes to engagement with superannuation funds, 89 per cent of respondents said they check their super fund statements.

Around half of respondents claimed to be aware of how much they pay in fees (51 per cent) and 64 per cent of those surveyed claimed to the know the balance of their fund.

Sixty-eight per cent of respondents said the performance of their super fund was “good” over the past 12 months.

Eighty-eight per cent of those surveyed said they supported the current super system, and 80 per cent supported an increase in the super guarantee to 12 per cent over the next decade.

 

Super switching intentions on the up
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