Financial planners triggered super switching for 111,930 working Australians between October 2005 and October 2006, according to the latest Investment Trends survey.
The survey, commissioned by the Investment and Financial Services Association (IFSA), found about 746,200 people switched super providers between October 2005 and October 2006 with a further 1,279,200 considering switching. Just under half said the decision was triggered because they were unhappy with fees, performance or their planner - with fees being the standout factor.
Television advertising was said to be the least effective reason to change. A quarter of switchers said they relied on their own research when making a decision, 22 per cent said they relied on their employer's recommendation, 22 per cent said they relied on the super fund's own documents and 21 per cent said they relied on their financial planner's recommendation.
However, one of the most interesting aspects of the research was that people were actually reading the product disclosure statements (PDS), statements of advice (SOA) and financial services guide. The report found 14 per cent said they reviewed the PDS before making a decision. And of those with a financial planner, 61 per cent said they read all or most of the SOA.
In fact, 52 per cent of all switchers, that is 388,024 people, said they read all or most of the PDS. Only 11 per cent said they read none of the PDS. However, 13 per cent of those who read the PDS said they found the information difficult or very difficult to find. To be fair, 63 per cent said they found it easy. Most of those who found it difficult were aged in the 51-55 age-bracket.
