Planning not focus for industry fund members
Industry fund members are less involved when it comes to planning for the future than members of other types of superannuation funds, according to a report by Roy Morgan.
The Superannuation and Wealth Management in Australia report found that while most industry fund members are not engaging right now, they agree they should do something about it.
Due to the lack of engagement, industry super fund members are also less likely to switch to another super fund, bringing switching intentions for the sector slightly below the 5.1 per cent average.
Meanwhile, switching intentions for retail funds have increased. AMP Group is the largest contributor to the high level of super fund switching intentions, with 7.8 per cent of their members planning to make a move.
At the other end of the spectrum, only 3 per cent of Australian Super members are likely to choose another fund.
"At a fund level, all three of the top retail funds with the highest intended switching have reported a higher proportion compared to a year ago (AMP Group: +1.2 per cent; ANZ: +0.5 per cent; NAB Group: +0.7 per cent)," said Norman Morris, Roy Morgan's industry communications director.
"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," he added.
"These monetary related reasons appear to be more common than reasons relating to brand or service."
But to increase satisfaction levels among disengaged members, industry super funds need to focus on service.
"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," Morris said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
