Consolidation the big outcome of choice
Between 4,000 and 5,000 Australians a month are making choice of superannuation fund, according to data released this week by Sydney-based administration platform provider, InvestmentLink.
InvestmentLink's data has also revealed that almost a quarter of new employees are opting not to join an employer's default fund but, rather, deciding to choose their own funds.
Instead, they are redirecting contributions to an existing fund.
The InvestmentLink research confirms that people are steering clear of self-managed superannuation funds (SMSFs), suggesting that fewer than 3 per cent of members have chosen SMSFs with the vast majority choosing established retail and industry fund brands.
The research also confirms that many Australians are using the new choice of superannuation fund regime to consolidate superannuation accounts by not opting for a new account when they start a new job.
It said much of the impact of choice was attributable to employees who had changed jobs since July 1, last year.
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