CANSTAR’s analysis of more than 100,000 visitors that have actively searched for specific superannuation funds on the canstar.com.au website over the past 12 months has uncovered some insights into what consumers are looking for with regards to their superannuation.
“Getting workers engaged with and interested in their superannuation still remains a challenge but it’s great to see that more than 100,000 individuals have researched their superannuation options on CANSTAR’s website alone over the past year,” said CANSTAR General Manager, Wealth, Josh Callaghan.
“In particular there are certain superannuation topics that have enduring appeal, attracting thousands of readers each month. Top of the list is the difference between retail and industry funds, which is a distinction that seems to confuse many people. Superannuation fees are also a hot topic, and life insurance within superannuation rounds out the top three most popularly-searched topics.”
Looking for low fees
CANSTAR has collated the data on the minimum, maximum and average fees across the 68 superannuation products included in its 2016 Star Ratings and has calculated the annual cost of those fees across various account balance scenarios.
“Reassuringly our research found that most providers are offering competitive fees and premiums; certainly there is plenty of competition in the market,” said Mr Callaghan.
“Even small differences in fees can have a significant impact on an investor’s end balance though, unless that fee is offset with a correspondingly higher return.”
Based on the growth asset allocation funds assessed by CANSTAR, the range of annual fees was as follows:
|Super Balance ($)||Average Fees ($)||Min Fees ($)||Max Fees ($)|
Fees include Administration Fees and Indirect Cost Ratio (including Investment Fee, Performance Fee and other indirect costs). Fees are calculated based on the average super balance specified, based on growth portfolio funds assessed for CANSTAR Superannuation Star Ratings 2016.
Life insurance within super is a popular topic, both in terms of CANSTAR visitors reading articles about the issue and visitors actively searching for superannuation funds that include the option for income protection.
“More than one-quarter (26%) of the more than 100,000 visitors using our online filtering tools over the past twelve months are specifically looking for a super fund that includes income protection,” said Mr Callaghan.
“Anecdotally, many funds have been telling us that there is a far greater awareness of insurance cover through super now, compared to several years ago.”
The table below provides the average cost of insurance across the different ages and cover amounts. Note that the sum insured amounts specified below differ between age groups; these sum insureds are based on industry feedback as to the typical level of default life cover at different ages.
|Age (Years)||Amount of Life & TPD Cover ($)||Average Fees ($)|
Premiums listed are based on the specified level of Death and TPD cover and age, for a non-smoking white collar and light blue collar male and female.
These figures are reflective of the rates collected for the CANSTAR Superannuation Star Ratings 2016.
Which Funds offer Outstanding Value?
CANSTAR’s 2016 ratings rates 68 superannuation products that are directly available for individuals to purchase without an intermediary (e.g. a financial planner), and only those Funds which are available to the public.
|Builder||Bendigo SmartStart Super|
|Established||Bendigo SmartStart Super|
|Pre-Retiree||Bendigo SmartStart Super|
|Wealth Accumulator||ING DIRECT – Living Super|
CANSTAR congratulates all winning Funds in the 2016 Superannuation Star Ratings. Read more about CANSTAR’s 2016 superannuation research.
For further information:
Editor in Chief
Ph. (07) 3837 4151 | 0400 127733
CANSTAR provides Australia’s interactive online research service in consumer and business finance. Founded in 1992, CANSTAR Pty Limited is Australia’s researcher of retail finance information for over 250 institutions such as Banks, Building Societies, Credit Unions, Finance Companies, Brokers, Mortgage Originators, Life Companies and finance related Internet Portals. CANSTAR customers use the extensive database for competitor analysis as well as a means of disseminating their product range. CANSTAR also distributes this information to print and electronic media for publication and to Agents, Accountants, Brokers and Internet Portals for use in advising their clients.
What are the CANSTAR star ratings?
CANSTAR researches, compares and rates the suite of banking and insurance products listed below. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR website at www.canstar.com.au if you would like to view the latest star ratings reports of interest.
|Account based pensions||Managed investments|
|Business banking||Online banking|
|Business life insurance||Online share trading|
|Car insurance||Package banking|
|Credit cards||Personal loans|
|Deposit accounts||Reward programs|
|Direct life insurance||Superannuation|
|First home buyer||Term deposits|
|Health insurance||Travel insurance|
|Home & Contents||Travel money card|
|Home loans||Youth banking|
COMPLIANCE DISCLOSURE and LIABILITY DISCLAIMER
To the extent that the information in this report constitutes general advice, this advice has been prepared by CANSTAR Research Pty Ltd A.C.N. 114 422 909 AFSL and ACL 437917 (“CANSTAR”). The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs. You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product. CANSTAR provides information about credit products. It is not a credit provider and in giving you information it is not making any suggestion or recommendation to you about a particular credit product. Please refer to Canstar’s FSG for more information.
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