Super members reject fund advice
Only around one in six superannuation fund members have sought financial advice from their fund, with many not even aware their fund offers advice, according to CoreData.
In its 2013 Member Engagement report, the research house found just 16.2 per cent of the 1,173 respondents had used their fund’s financial planning services.
The figure was higher for corporate fund members (26.5 per cent) but dropped to around one in 10 for industry fund members (10.8 per cent).
Salvador Saiz, head of advice, wealth and super at CoreData, described super funds’ advice offerings as “a key tool for member retention”.
“While the main reason given for not using their fund’s advice services is because they are not currently interested in financial advice (42.8 per cent), what is of concern is that one third are not aware that their fund provides these services,” he said.
“However, close to one third would use their fund’s advice services in future.”
However, on the back of improved fund returns, the study also found that the proportion of members satisfied with their fund had jumped from 50.8 per cent in 2012 to 62.1 per cent in 2013. Satisfaction with returns also jumped, from 42.1 per cent in 2012 to 54.7 this year.
In both categories retail funds fared the worst while corporate funds were scored best.
Despite the improved satisfaction scores the study found more than one in five members would change funds if they could get around to it, which increased to three out of 10 for retail fund members.
One in 10 respondents said they would consider leaving their main super fund in order to establish a self-managed super fund.
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