Thursday, November 28th, 2013

Roy Morgan Research this week launches the latest Superannuation and Wealth Management Report, a comprehensive analysis of consumer behaviour, advice and fund performance.

The Report contains results and analysis from the most extensive study of consumer financial behaviour in Australia, with over 50,000 annual interviews covering assets and debt, financial products, satisfaction levels and switching intentions.   

The nation’s total household debt has ticked past $1 trillion. Total debt increased by 27.6% ($224 billion) since June 2009, with total assets up 13.9% ($767 billion) in the period. Net wealth grew 1.7% in the past year, continuing its decline as a proportion of total assets to 83.6%.

Equity in owner-occupied homes continues to decline as a proportion of net household wealth but remains the largest component. Superannuation (including pensions and annuities) now comprises 29.9% of net wealth, up from 28.2% last year and 27.1% in 2009.

Only around one in four Australians (27.8%) with superannuation feel that they have “planned enough to be financially secure in the future”. Members of industry super funds are the least likely to believe they have planned enough (23.3%), with the majority of self-managed fund owners (54.7%) confident in their future financial security. Overall, nearly 2 in 5 (39.5%) super account holders say they “should do something about planning financial future”.

Employers continue to be the primary channel that Australians rely on when deciding on their superannuation fund. Over the past five years, approximately 84% of superannuation products were obtained through the employer, while only approximately 11% relied on a financial planner or adviser.

Fewer Australian superannuation owners (3.4%) switched super fund in the year to June 2013 compared with the year to June 2012 (4.9%), perhaps a result of increased satisfaction in fund performance.

Two thirds (66%) of those who switched superannuation sought some sort of advice. 45% of switchers relied on a professional such as a financial planner or accountant and 35% sought advice from their employer.

CBA/Colonial Group has topped the ranking of superannuation brands, driven largely by strong performances in the percent of customers gained through financial planners and net switching gains. Roy Morgan analysed the top 20 superannuation brands using a range of nine consumer-based brand measures which covered customer quality, financial performance, net gains from switching and market penetration. This ranking was designed to give a comprehensive measure of brand franchise strength.

Over two-thirds of the nearly $1.7 trillion held in Wealth Management products is owned by the top 20% of product holders. However, the distribution of wealth has flattened slightly over the past five years, with a 1.5% point reduction in the proportion held by the top quintile filtering through to each of the four lower wealth quintiles.

Financial Planners from each of the major planning groups continue to recommend in-house products. Over the last five years, AMP remains the most self-referential, with over 70% of people using an AMP/AXA-linked Financial Planner ending up with an AMP/AXA product.

Many consumers are confused about whether financial planners are aligned or independent, with the majority of customers using Financial Wisdom (CBA) or Godfrey Pembroke (NAB/MLC) perceiving the financial planner as independent.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“This latest report provides a comprehensive update to the superannuation and wealth management industry, including new figures and analysis about many on-going issues such as the effect of Super Choice, the proposed Future of Financial Advice (FoFA) reforms, and the changing levels of understanding and satisfaction among Australian holders of different financial products.

“This report looks at the segmentation of the wealth management industry based on customer value. We believe that the insights and analysis provided in this report will be of great strategic value to companies involved in the funds management industry, government regulators and industry bodies.”

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


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