fsc/ing direct superannuation sentiment index 2014 - what consumers think about superannuation

ReseaRch MethodologyThe research was conducted in two stages: a large national quantitative survey; and qualitative focus groups to determine opinion and behaviours. The national survey of 1,000 working Australians with superannuation was conducted between 14-20 July 2014. Four focus groups were held in Sydney on 10 July 2014 comprising 8-10 working people with superannuation.

Superannuation Sentiment index 2014 infographic

Sentiment haS improved Since 2013

What conSumerS Said

factorS that Would encourage conSumerS to change fundS

majority Support Superannuation

a measure for how engaged australians are with their superannuation.

2013 2014 changetotal index (average of ratings below) 103 105 3Performance (returns) of own fund this year 114 121 7Better or worse performance than last year 103 102 -1Judgement of value from fees 92 87 -5Favourable opinion of sector 101 107 6Have trust in super 100 106 6NOT too many changes in system 71 70 -1Have confidence in system 99 107 8Provides stability and certainty 103 114 11Something to be proud of 105 111 6Essential in comfortable retirement 134 133 -1Funds ARE transparent enough 70 67 -3Support for Australia’s super system 139 136 -3

of Australians support superannuation

86%

say super funds, their fees and the way they work are

not transparent enough

71%

say superannuation is essential in providing a comfortable retirement

83%

of Australians don’t know how much they pay in superannuation fees

51%

of Australians trust superannuation

56%

believe fees are too high

35%

have confidence in the system

57%

are aware of ‘zero fee’ funds

32% But there are concerns over fees and transparency.

Agree

Neutral/Unsure

Disagree

Super is essential in providing a comfortable retirement

Super funds, their fees and the way they work are not transparent enough

There are too many changes to the superannuation system

Australia’s superannuation system is somethingto be proud of

The superannuation system provides stability and certainty

I have a favourable opinion of Australia’s superannuation sector

I have confidence in the superannuation system

I have trust in superannuation funds and providers

84% 10%7%

83% 11%7%

66% 20%14%

71% 17%13%

59% 21%20%

65% 20%15%

55% 26%19%

61% 22%17%

53% 33%14%

64% 25%11%

51% 31%17%

57% 25%17%

49% 37%14%

57% 30%13%

50% 36%14%

56% 32%12%

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Fees and fund performance are key.

feeSAwareness of fees paid correlates with age and type of fund – younger working people with ‘traditional’ super funds are

unaware of their fees. Those nearing retirement with SMSFs were much more aware.

Too high

About right

Too low

Undecided

31%

35%

36%

41%

27%

27%

1%

1%

2013

2014

don’t know how much they pay in superannuation fees

51% are ‘definitely aware’ of

the fees they pay

15%

2014

Lower fees from another provider

Better performance and returns from another provider

An easier switching process

More information about the other options

A fund that is bundled in with other financial services

The easy consolidation of multiple super funds

Don’t know

None of these

Other

53%

52%

40%

21%

19%

17%

12%

10%

2%

Positive influences: • Double digit growth of funds

• Trust, pride and confidence in superannuation

• Favourability of superannuation

negative influences: • Judgment of value from fees

• Support for the current system

• Fund transparency

hoW much conSumerS think they need for retirementConfidence in superannuation providing a comfortable retirement has increased.

2013

2014

Under $0.5m

$0.5m

>$0.5m & <$1m

$1m

Over $1m

26%

31%

20%

19%

16%

16%

22%

21%

16%

13%

Click to download the report fsc-ing direct superannuation sentiment index 2014 and join the conversation #superindex14

UB

-AW

1445

performance

Perceptions of Superfund performance are trending upward.

Total better

Total worse

Undecided/Neutral

53%

52%

35%

38%

13%

9%

2013

2014

rate returns as ‘good’ - up from 64% in 2013. Most consumers

think returns in 2014 are better than 2013.

71%