Switching SMSFs remains high in desire, but low in practice: ING

Switching SMSFs remains high in desire, but low in practice: ING
Switching SMSFs remains high in desire, but low in practice: ING

The ING DIRECT / Financial Services Council Annual Super Sentiment Index shows that more than a quarter of Australians said they would be likely to switch their super fund in the future.  

The 27% represents a significant increase on the previous year when less than one fifth (19%) were considering a future super switch.  

However despite this growing appetite for change, the number of people who actually make a switch remains low.

Fewer than one in 10 people change their super every year, with 3% making the switch purely because of a change in their employment.

John Arnott, Executive Director, Customers, ING DIRECT, said super was a significant investment over the course of a lifetime, right up there with our homes.  

"Most people wouldn't dream of taking out a home loan without some level of research about the various offerings available, yet according to our Super Sentiment Index only 6% of Australians said they undertook research before selecting their current super fund."

More than two thirds (68%) default to their employer's super fund with only 6% of people conducting detailed research before selecting their current super fund.

"As you're looking at your super statement this year end, I'd urge everyone to take an hour to do some quick research into the various super offerings available and make sure your super is the best option for you."

Technology has made the super switching process much easier than in the past.  

Six key considerations when choosing super

  • Fees - these range from 0%pa to around 2.33%pa and can have a significant impact on your retirement nest egg
  • Investment options – make sure there are options that suit your objectives, comfort with risk, and importantly a range of types to suit your changing needs over time
  • Performance - look for a steady track record of solid performance over time. Don't just chase last year's best performer; it's no guarantee they will be strong performers in future
  • Extra benefits – eg financial advice options
  • Insurance - see what types of cover are available, the terms and conditions, and what it will cost
  • Service – how easy is it for you to keep track of your super and make changes (some funds offer online services and mobile apps to help you keep in control)

 

 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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