A significant proportion of people thinking of using the new choice regime to change superannuation providers would opt for industry funds, according to a survey conducted on behalf of the Snowball Group’s financial planning arm, CIS.
The survey, which canvassed the opinions of 310 human resources professionals, found that employees would be unlikely to rush out of their existing funds immediately choice became available, but suggested they would look for higher returns and lower fees.
It also suggested that of those who thought they might be tempted to move, 31 per cent said they would consider industry funds, while 28 per cent indicated they would consider the self- managed super fund route.
This compared with the 20 per cent who said they would consider public offer funds and the 12 per cent who said they would consider master trusts.
Commenting on the survey outcome, Snowball Group managing director, Tony McDonald said the perceived attraction of industry funds did not come as a surprise.
“The perception that self-managed super might be the way to go could be dangerous for the majority of average Australian workers,” he said. “They may be a suitable retirement option for some high income individuals, but they are certainly not for every one and there is no evidence to suggest they produce higher returns.”
McDonald said the apparent misconception surrounding self-managed super highlighted how important it was for employees to take the right advice and the benefit of that advice being provided in the workplace.
