A new survey commissioned by AIST has found an overwhelming majority of Australians are opposed to the idea of a superannuation fund making a profit.
The survey, which was conducted on behalf of industry fund lobby group the Australian Institute of Superannuation Trustees (AIST), found that 91 per cent of respondents think default funds should be not-for-profit.
The Essential Media poll was based on 1,014 respondents gathered from Your Source's online consumer panel of 100,000 members.
The poll also found that 71 per cent of those surveyed objected to employers being able to use a default fund that is associated with their bank.
Commenting on the results, AIST chief executive Eva Scheerlinck said superannuation members' interests should come ahead of incentives offered by banks (such as "access to overdrafts of loans at cheaper rates").
The poll also unearthed a lack of knowledge about default funds and their place within enterprise agreements.
"When it comes to trust and reputation, profit-to-member funds are miles ahead, but issues such as poor financial literacy and lack of confidence remain a challenge," Ms Scheerlinck said.
"One in four people surveyed don’t know if they are in a default fund or not," she said.
Women are less likely to choose their own fund than men, according to the poll – but women are more likely to take their old fund across to a new employer when changing jobs.
"Changes to how default super funds are selected have the power to impact millions of super fund members – particularly women, who are less likely to choose their fund," said Ms Scheerlinck.
"We need to make sure that our default fund selection process is going to work for members, not just make money for shareholders somewhere."
A survey has found that more than half of Australians are unaware of the Protecting Your Super package changes that are coming into effect i...
Superannuation funds are not doing enough to communicate to their members the impact that new laws may have on their funds. ...
While industry experts are contending over whether the government should be raising the superannuation guarantee, financial consultant Rice ...