A survey conducted by CoreData and commissioned by ASFA found that 19.2 per cent of the 1,023 respondents didn’t know how to consolidate their super, despite half reporting that they were likely to do so in the next two years.
“While it’s encouraging to see that members are thinking about consolidating their accounts, and want to know more about their fees and insurance, they still do not appreciate that help is often just a phone call or web click away,” ASFA chief executive Pauline Vamos said.
“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.”
The survey also found that consumers want fund statements to be easier to read, with only 24.5 per cent claiming to have a “good understanding” of the information provided by their funds.
In particular many were struggling with terminology, how fees are calculated and investment returns as well as tables and graphs.
In addition, the survey found that 41.3 per cent said they had a poor understanding of their insurance options through superannuation, with two in five stating they did not know how to choose or change their insurance through their fund.
“We also realise that, at present, funds are quite restricted in terms of the information they can provide to members and how it can be presented,” Ms Vamos said.
“Therefore, it’s time we seek the regulatory changes necessary to ensure information can be delivered to fund members in a way that helps them make decisions to plan for their retirement.”
“In response to these findings, ASFA, as the peak body for the industry, will also run a series of campaigns directed at addressing the knowledge and awareness gaps identified regarding consumers understanding superannuation.”
