A Roy Morgan superannuation and wealth management report has revealed that dissatisfaction with performance and fees is still the biggest risk to member retention for retail funds while for industry funds changing employers was reported as the biggest risk to retention.
31% of people who switched out of industry funds have identified with being dissatisfaction with performance and fees compared to the 29% of people who switched out of retail funds for the same reasons. However for industry fund members changing employers, 48% said it was the main reason they switched funds compared to 33% of retail fund members who switched.
With the growing popularity of the SMSF, the report has indicated that the mitigating factor why 50% of people set up a self-managed super fund was due to concerns regarding performance and only 14% of people who switched into an industry fund, indicated that they did so because of performance concerns.
The Research also revealed that the number of professional advisers recommending their clients switch to industry superannuation funds has almost halved in just three years with 22% of people who switched into a SMSF did so on the recommendation of a financial adviser or a friend, with only 7% of those who switched into an industry fund did so because of such advice.