Likely super switchers decide to stay put

A remarkable number of consumers who flagged they would switch superannuation funds in June, just before the onset of choice, have since changed their minds and decided to stay where they are.

The September Super Switch Index released today by Mercer Human Resource Consulting, which talked to 500 consumers, found that 47 per cent were now planning to stay in their current provider for another two years.

Back in June, 34 per cent said they planned to stay with their current provider.

And the increased level of stagnation found in today’s report is part of a trend, with what Mercer calls the “unlikely to change” group increasing steadily in number since the first of its survey’s in February last year.

On the flipside, the survey released today found those with strong intentions to switch funds had fallen from 16 per cent in June to 12 per cent in the September quarter.

“This could be the start of a slow and steady decline among ‘early changers’ as they begin switching,” said Mercer Wealth Solutions business leader David Anderson.

He said there was a chance the percentage of switchers could increase in the near future, as the 12 per cent remaining in the ‘early changers’ group — who have characteristics such as being well-informed about their choices, have a higher account balance, and express the most dissatisfaction with their fund — act on their intentions.