Just under one third of super fund members receive no guidance when switching superannuation products, a new survey has found.
According to the results of the Roy Morgan Research survey – which consisted of interviews with more than 100,000 super fund members over the last three years – 31 per cent of respondents did not get any advice when switching products.
This was compared to 26.9 per cent of fund members that sought advice from a financial planner, and 18.2 per cent who were assisted by their employer.
For those looking to switch to an industry superannuation fund, Roy Morgan research found that 37.2 per cent did not have any guidance.
Those looking to switch to a retail fund, however, the research house found that 25.1 per cent did not have any advice.
Commenting on the results, Roy Morgan Research industry communications director Norman Morris said, given the “complex nature” of superannuation, it is “vital” more people get advice when making decisions when switching super products.
“Although advice is needed when switching superannuation, adverse publicity and the negative image of planners is potentially a barrier to more switchers choosing to use them,” he said.
“Issues relating to conflict of interest and professional qualifications of planners are likely to take some time to improve but the industry is taking measures to address perceptions in these areas.
“With over $35 billion in superannuation being switched every year, this represents a major opportunity for the industry. The challenge is to ensure that people switching their superannuation realise they’d generally be better off getting advice, and that they can feel confident in their adviser,” he said.
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