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Switching intentions highest among retail funds
Members of retail funds are more likely to switch than members of any other type of super fund, a Roy Morgan report has found.
The Superannuation and Wealth Management in Australia report, which surveyed more than 36,500 consumers, found on average 5.1 per cent of participants were very likely to switch their superannuation products in the next 12 months, up marginally from the same period a year ago.
However, for retail funds the figure is higher at 6.7 per cent, compared to industry funds at 4.8 per cent, public sector at 2.9 per cent and self-managed super funds at 1.9 per cent.
The major contributors to the high level of retail superannuation fund switching intentions are AMP Group at 7.8 per cent, closely followed by ANZ and National Australia Group.
At the other end of the spectrum is AustralianSuper, the largest industry fund, with intended switching at 3.5 per cent. According to Norman Morris, the industry communications director at Roy Morgan, 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.
Most of them, however, 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," Norman said.
However, some industry funds are matching their retail rivals in switching intentions, with 7 per cent of HOSTPLUS customers very likely to make a move, followed by CARE Super at 6.5 per cent and REST Super at 6.3 per cent.
"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," Morris said.
"These monetary-related reasons appear to be more common than reasons relating to brand or service."
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