The number of Australians thinking of switching their super fund is at a record high, according to the latest data from Investment Trends.
The Investment Trends 2018 Super Fund Member Sentiment and Communications Report has found that the number of Australians thinking of switching their super fund is at a record high with seven per cent of members intending to leave their super fund in the next 12 months, up from the five per cent level recorded in previous years.
Commenting on the finding, Investment Trends senior analyst, King Loong Choi pointed to the data being driven by younger fund members.
“The growing intention to switch super funds is predominantly driven by younger Australians, with 16 per cent of those aged between 18 and 34 saying they intend to do so,” Choi said.
He said that while high fees were the key motivator for switching (30 per cent cited this), millennials were more likely to seek a fund that provided access to socially responsible investment options (14 per cent).
“Ethical and socially responsible investing is gradually gaining popularity, and super funds that cater to this growing demand will stand out among younger Australians,” Choi said.