Tuesday, January 14th, 2014 - Roy Morgan Research

On average 5.1% of superannuation products are “Very Likely” to be switched in the next 12 months (up marginally from 5.0% 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 the AMP Group, with 7.8% intending to switch, followed by the ANZ Group (7.5%) and NAB Group at 7.2%. These are the latest findings from the “Superannuation and Wealth Management in Australia” report.

Intended switching from Industry Funds overall is below the industry average, with 4.8% considering it “Very Likely” that they would do so. Of the various Industry Funds, HOSTPLUS has the highest proportion of its products “Very Likely” to be switched at 7.0%, followed by CARE Super (6.5%) and REST Super (6.3%). Intended switching from AustralianSuper, the largest Industry Fund in Australia, is comparatively low at 3.5%. Self-Managed funds are amongst the least likely to switch, with only 1.9% considering it “Very Likely” to switch in the next 12 months.

Intending to switch superannuation fund manager in next 12 months

Super switching intentions

Source: Roy Morgan Research “Superannuation and Wealth Management in Australia” report, 12 months to June 2013, n = 36,796.  “Very Likely” to switch superannuation fund manager within next 12 months. “Very Likely” is one point on a five point scale also included “Fairly Likely”, “Neither Likely nor Unlikely”, “Fairly Unlikely” and “Very Unlikely”.

Norman Morris, Industry Communications Director says:

“Overall intention for switching superannuation products has remained fairly steady over the last 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 (AMP Group: +1.2%, ANZ: +0.5%, NAB Group: +0.7%).

 

"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.”

 

"The report also highlights the fact that industry fund members are less involved than those with other superannuation funds in planning for their financial future, however most of them agree that 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.

We have delivered this press release via the Newsmaker media distribution service. If you would like to browse our extensive archive of detailed research findings please visit our website. To stay up-to-date with all our latest research findings you may also join our free weekly newsletter.

Contact Profile

Roy Morgan Research


Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332
W: www.roymorgan.com

Keywords

superannuation, retail funds, AMP, ANZ, NAB

Categories

Newsrooms

Sharing

More Formats