A CIFR study found that around two-thirds of members surveyed either chose their fund provider or their investment option.
CIFR found that despite popular belief, fewer superannuation members are ending up in default funds due to lack of interest or poor engagement.
Co-author of the report Susan Thorp said: “Our study provides some unique insights into the wants and needs of super fund members, and how they square with what the industry is attempting to deliver.”
“Whereas in many cases they seem aligned, one potential issue is that the majority of surveyed members display low risk tolerance, while default investment options are often relatively aggressive.”
The study – which surveyed over 1,000 default members and 28 executives from 20 funds – found that the majority of default members trust the fund provider to make appropriate investment decisions on their behalf.
CIFR indicated that this trend reinforces the importance system integrity and the need to appropriately engage with members.
Moreover, the research found that fund executives recognised that members are primarily interested in retirement outcomes and are not concerned with short-term performance.
Geoff Warren, CIFR research director and project leader, concluded that CIFR's research reveals that the design of policy and product should be based on the fact that many default members are actually engaged with their super.
Mr Warren also said that policymakers should consider paying closer attention to those with responsibility of choosing the default provider.
