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
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.
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