Super fund rules mystify consumers
Complex rules around consolidation and excessive paperwork are immobilising superannuation fund members, a survey has revealed.
While around half of surveyed members said they wanted to consolidate their accounts, almost one in five (19 per cent) would struggle to do so because of complicated terminology and data, according to research commissioned by the Association of Superannuation Funds Australia (ASFA).
Only one in four had a ‘very good' understanding of the information provided, the survey of 1023 members showed.
Clarity around exit fees, tax deduction and projected income was sought by the majority of respondents.
Meanwhile, the superannuation industry's sluggish adaptation to the digital age is also holding members back, the survey found, with 44 per cent preferring online statements over hard copies.
ASFA CEO Pauline Vamos said although transparency has improved over the last few years, more work clearly needs to be done.
"These findings are a call to the funds to connect more deeply into the general community to really get the messages across, raise awareness and educate fund members so they can make better-informed decisions regarding their superannuation accounts and their retirement," she said.
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