{"id":721,"date":"2014-08-28T18:45:11","date_gmt":"2014-08-28T08:45:11","guid":{"rendered":"https:\/\/newsroom.ing.com.au\/?p=721"},"modified":"2016-08-30T14:13:33","modified_gmt":"2016-08-30T04:13:33","slug":"rising-confidence-in-superannuation-%e2%88%92-but-concerns-linger-over-fees-and-transparency","status":"publish","type":"post","link":"https:\/\/newsroom.ing.com.au\/rising-confidence-in-superannuation-%e2%88%92-but-concerns-linger-over-fees-and-transparency\/","title":{"rendered":"Rising confidence in superannuation \u2212 but concerns linger over fees and transparency"},"content":{"rendered":"<p>FSC-ING DIRECT Report: Superannuation Sentiment Index 2014<\/p>\n<p>Favourability towards Australia\u2019s superannuation system has increased in the past year according to the second FSC-ING DIRECT Superannuation Sentiment Index released today (Thursday).<\/p>\n<p>The index gauges how confident and engaged Australians are with their superannuation.<\/p>\n<p>The FSC-ING DIRECT report has found the improved sentiment has been driven by superannuation fund performance along with pride, trust and confidence in the superannuation system. This has been offset by reduced confidence in the value of fees paid, support for the current system and fund transparency.<\/p>\n<p>\u2018Stability and certainty\u2019 of the superannuation system showed the biggest positive shift (+11) while the \u2018judgment of value of fees\u2019 showed the largest negative shift (-5).<\/p>\n<p>John Brogden, CEO of the Financial Services Council, said: \u201cA second year of double digit returns for superannuation has clearly had a positive impact on sentiment.\u201d<\/p>\n<p>\u201cThis year\u2019s results show that bipartisan support to leave the policy and tax settings of superannuation alone has resulted in the largest improvement in trust and stability.\u201d<\/p>\n<p>Vaughn Richtor, CEO of ING DIRECT said: \u201cWhile satisfaction with returns has improved, understanding of fees has declined.<\/p>\n<p>\u201cThe industry needs to do a better job at explaining fees so that people can make the right decisions on choosing a fund,\u201d Mr Richtor said.<\/p>\n<p>\u201cThis includes ensuring fees and charges are fair and provide value for money, providing education and transparency around investments, and enabling Australians to view their superannuation balance and activity easily.\u201d<\/p>\n<p>Mr Brogden added: \u201cMySuper will provide fund members with detailed information around investments and fees.\u201d<\/p>\n<p>\u201cThe industry can play an important role in helping members become more engaged with their superannuation, which will be the single biggest investment that many Australians make in their lifetime.\u201d<\/p>\n<table border=\"1\" cellpadding=\"4\">\n<tbody>\n<tr>\n<td colspan=\"3\" align=\"center\"><strong>KEY FINDINGS<\/strong><br \/>\nConfidence and engagement in super has remained steady in the past 12 months due to strong superfund performance.<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">2014<\/td>\n<td valign=\"top\">2013<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">86%<\/td>\n<td valign=\"top\">89%<\/td>\n<td>support Australia\u2019s superannuation system 83% 84% see superannuation as essential in providing a comfortable retirement<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">61%<\/td>\n<td valign=\"top\">55%<\/td>\n<td>believe superannuation is something to be proud of<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">64%<\/td>\n<td valign=\"top\">53%<\/td>\n<td>say the superannuation system provides stability and certainty<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">71%<\/td>\n<td valign=\"top\">66%<\/td>\n<td>say superannuation returns are \u2018good\u2019<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">52%<\/td>\n<td valign=\"top\">53%<\/td>\n<td>consider returns are better in 2014 than 2013<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">52%<\/td>\n<td valign=\"top\">62%<\/td>\n<td>believe they will not have enough to fund a comfortable retirement<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">80%<\/td>\n<td valign=\"top\">83%<\/td>\n<td>support increasing contributions to 12%<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">68%<\/td>\n<td valign=\"top\">72%<\/td>\n<td>know approximately how much is in their superfund now<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">49%<\/td>\n<td valign=\"top\">n\/a<\/td>\n<td>don\u2019t know the fees they pay on super<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">15%<\/td>\n<td valign=\"top\">n\/a<\/td>\n<td>are definitely aware of the fees they pay on super<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">71%<\/td>\n<td valign=\"top\">66%<\/td>\n<td>say super funds, their fees and the way they work are not transparent enough<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">68%<\/td>\n<td valign=\"top\">74%<\/td>\n<td>use their employer\u2019s default fund or recommendation<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">27%<\/td>\n<td valign=\"top\">19%<\/td>\n<td>would be likely to change their fund provider in the future<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">53%<\/td>\n<td valign=\"top\">n\/a<\/td>\n<td>say lower fees would be the key reason why they would consider switching funds: 52% say better performance by another provider would be key<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>The FSC-ING DIRECT report also found that people\u2019s confidence in their super providing them with a comfortable retirement has increased. In 2013, 62% said their superannuation would be inadequate compared with 52% in 2014.<\/p>\n<p>Perceptions of the amount required for an adequate retirement varied widely \u2212 50% (46%) believe $500,000 or less will be enough while 34% (38%) say $1 million or more is the right amount.<\/p>\n<p>Mr Richtor added: \u201cAs a compulsory system, it is critical that superannuation maintains strong support to ensure it achieves its full potential and that Australians have adequate savings in retirement.\u201d<\/p>\n<h3>Media contacts:<\/h3>\n<table cellpadding=\"4\">\n<tbody>\n<tr>\n<td>Robyn Tolhurst<br \/>\nDirector of Communication<br \/>\nFinancial Services Council<br \/>\nPh: 0411 177 773<br \/>\nE: <a href=\"mailto:rtolhurst@fsc.org.au\">rtolhurst@fsc.org.au<\/a><\/td>\n<td>David Breen<br \/>\nHead of Corporate Affairs<br \/>\nING DIRECT<br \/>\nPh: 0412 933 060<br \/>\nE: <a href=\"mailto:david.breen@ingdirect.com.au\">david.breen@ingdirect.com.au<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Research Methodology<\/strong><br \/>\nThe research was conducted in two stages: a large national quantitative survey; and qualitative focus groups to determine opinions 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.<\/p>\n<p><strong>About the Financial Services Council<\/strong><br \/>\nThe Financial Services Council (FSC) represents Australia&#8217;s retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks, licensed trustee companies and public trustees. The Council has over 125 members who are responsible for investing more than $2.3 trillion on behalf of 11 million Australians. The pool of funds under management is larger than Australia\u2019s GDP and the capitalisation of the Australian Securities Exchange and is the third largest pool of managed funds in the world. The Financial Services Council promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency.<\/p>\n<p><strong>About ING DIRECT<\/strong><br \/>\nING DIRECT changed the way Australians bank 15 years ago by launching the country&#8217;s first high interest, fee free online savings account. Since then, we\u2019ve brought this low fee value to home loans, transactional banking and superannuation. With over 1.5 million customers \u2013 and $31 billion in savings and $38 billion in mortgages \u2013 ING DIRECT has the highest reputation of any other bank in Australia (RepTrak, Oct 2013), as well as the highest Net Promoter Score (NFSM, December 2013).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FSC-ING DIRECT Report: Superannuation Sentiment Index 2014 Favourability towards Australia\u2019s superannuation system has increased in the past year according to the second FSC-ING DIRECT Superannuation Sentiment Index released today (Thursday). The index gauges how confident and engaged Australians are with their superannuation. The FSC-ING DIRECT report has found the improved sentiment has been driven by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-721","post","type-post","status-publish","format-standard","hentry","category-super"],"acf":[],"_links":{"self":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts\/721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/comments?post=721"}],"version-history":[{"count":3,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts\/721\/revisions"}],"predecessor-version":[{"id":1526,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts\/721\/revisions\/1526"}],"wp:attachment":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/media?parent=721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/categories?post=721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/tags?post=721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}