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Advice a drawcard in super fund switch

Financial advice services are a key factor in the ability of super funds to retain or lose members, according to CoreData’s latest Member Retention report.

The report – compiled off the back off online research conducted by CoreData’s superannuation intelligence unit – found that advice services play an important role in the decision of members to change superannuation funds.

“There is no doubt that advice is a key factor in member engagement, with previous research indicating not only that members would like to access advice (in one form or another) through their super fund, but that it is a key retention tool,” said CoreData head of advice, wealth and super Salvador Saiz.

The report found that “advice is certainly a key factor for those at most risk of switching funds” but at the same time, that many members are not sufficiently aware of the advice services offered by their fund.

However, it also found that there is interest in scaled and limited advice services, the “majority of respondents indicated that they would not be willing to pay for these”.

Other key findings included that industry funds are the main beneficiary of super fund switching, with four in ten (42.2 per cent) of respondents looking to switch funds eyeing up an industry fund.

At a fund level, the funds most likely to benefit from switching members are listed as AustralianSuper, AMP, MLC, HESTA and Colonial First State respectively, the report states.