POWERED BY MOMENTUM MEDIA
Just four per cent of members rolling funds over in FY2018
Despite the strong policy emphasis currently on superannuation account consolidation, research by Vanguard has found that very few members rollover their funds.
The research, conducted with First State Super, Sunsuper and VicSuper, found that only four per cent of members rolled their funds into another Australian Prudential Regulation Authority (APRA) regulated funds in FY2018, and one per cent only made a partial rollout. Less than 0.5 per cent of members rolled their super funds into a self-managed superannuation fund (SMSF).
For those who did rollout funds into other funds, the How Australia Saves report found that: “Members rolling benefits out tended to be younger and had smaller account balances. It is likely that many of the rollouts were undertaken by members who had accounts with two or more different funds, stemming from multiple employment relationships.”
Despite funds offering varied options, the research also showed that members showed a clear preference for defaults, with 87 per cent of all accounts looked at invested solely in MySuper offerings. Members weren’t keen to change their options either, with only three per cent making one or more portfolio switches last financial year.
Very few were willing to try extreme asset allocations, with just one percent investing exclusively in growth assets and the same amount having no allocation to the asset type. More self-directed investors were, on average, choosing more conservative asset allocations, with allocations from this group to growth assets sitting at 59 per cent, compared to 69 per cent of the general population.
Finally, the research showed that numbers of members making additional contributions remained low, with just 12 per cent making salary sacrifice or non-concessional contributions in the last three years.
Self-directed and female members both made more contributions. Twenty-five per cent of the former put extra money into their super, while female members across all investor types made more con-concessional contributions than their male counterparts.
Recommended for you
Speaking to Super Review, the $70 billion fund has unveiled its new solution to address the ‘cognitive load’ of retirement as members enter their golden years.
New research has suggested it’s time to reconsider the home as a fourth pillar of the retirement income system, alongside the age pension, superannuation, and voluntary private savings.
New research has revealed over 60 per cent of retirees believe their super fund offers retirement income products suitable to support their retirement lifestyle.
Some retirees are “needlessly” paying two sets of fees and often more tax than they need to, according to the industry body.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
