Almost two-thirds of Aussies believe superannuation fees are not transparent enough and 31 per cent lack confidence in the current system, according to a report.
The “Your Super Future” report by the Financial Services Council (FSC) and ING Direct found there is growing awareness on the impact of fees on super, with 38 per cent saying fees are too high.
The report said fees and better performance ranked equally (52 per cent each) as the most common reasons for switching funds.
ING Direct chief executive, Vaughn Richtor, said “As an industry we need to ensure that super funds are as simple and transparent as possible so that people can see how much they are likely to have accumulated by retirement and plan accordingly”.
“I am particularly pleased that increasingly Australians are considering switching their super funds to get a better deal on fees performance, and transparency. It shows people are taking more control of their retirement savings,” he said.
“We must do more to increase awareness of the long-term impact fees have on superannuation. Only around half of Australians said that lower fees would be a key driver for switching, despite the potential for fees to significantly detract from overall fund performance in the longer term.”
The report said greater transparency would assist more fund holders to become better informed and more engaged with their super, and more confident in the broader system.
