Planning not focus for industry fund members

financial planning industry funds roy morgan super fund cent retail funds industry super funds superannuation funds wealth management director

15 January 2014
| By Staff |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 4 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 20 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

6 days ago