Little member movement between super funds
After one year’s experience of being able to easily switch superannuation funds, research by Roy Morgan Polling has shown that there is little – and declining – interest in doing so. However, member contributions are increasing due to booming markets, and the Government’s plans to further reform super including scrapping all benefit taxes.
Only 5.9% of those surveyed indicated they were ‘very likely’ to switch funds in the next 12 months, and the number who actually switched super funds dropped to 4.5% from 5.2% over the previous six months. Three consecutive years of double digit returns by most funds may have also decreased the need to shop around.
The research showed that industry funds had attracted the highest net percentage of people switching to them, followed by movement to MLC. AMP posted the worst figures of people switching out, but they have previously disputed these figures.
