The Superannuation and Wealth Management in Australia report revealed 6.7 per cent of retail fund members are very likely to switch funds in the next 12 months, compared to the industry fund figure of 4.8 per cent.
The main contributors to the high levels of intended retail fund switching are AMP Group at 7.8 per cent, followed by ANZ Group at 7.5 per cent and NAB Group at 7.2 per cent.
Out of the industry funds, HOSTPLUS had the highest proportion of members ‘very likely’ to switch products at 7 per cent, followed by CARE Super at 6.5 per cent and REST Super at 6.3 per cent.
SMSF trustees were the least likely to switch, with only 1.9 per cent stating they were ‘very likely’ to switch from their SMSF in the next year.
Roy Morgan industry communications director Norman Morris said while the intention for switching superannuation products has overall remained fairly steady in recent years, the top three retail funds with the highest intentions for switching have all reported higher figures than last year.
The intention for switching for AMP Group increased by 1.2 per cent, while the ANZ figure rose 0.5 per cent and the NAB Group increased by 0.7 per cent.
“Apart from a change in jobs, the main reasons people give for switching their superannuation products to another fund is investment performance, as well as fees and associated charges,” said Mr Morris.
“These monetary-related reasons appear to be more common than reasons relating to brand or service.”
Mr Morris said the report also showed industry fund members are less involved in planning for their financial future compared with members of other superannuation funds.
“However, most of them agree they should do something about it," he said.
Mr Morris said the key to retaining members is not only performance but a “detailed understanding on how to communicate and educate the different segments within the funds customer base”.
