Switching advice 'less than ideal'

In a new report on superannuation and wealth management in Australia, Roy Morgan Research notes that 72 per cent of people who switched to a different superannuation provider in the 12 months to December 2014 sought "some sort of advice when doing so".

This is seen as a mixed result - the  number seeking advice is higher than the 69 per cent of respondents in 2010, but still less than ideal. Of equal concern was the discovery that only half of those who sought advice asked a professional such as a financial planner or accountant (35 per cent of all who switched funds).

Others asked their employer (about a quarter of those who asked for advice); a friend or family member; or their financial institution directly (this last group accounted for nine per cent of all who switched - an impressive increase, although only from six per cent).

"This research shows that people with high superannuation balances are more likely to seek professional advice than those with less funds. Besides cost, the potential reasons for this include a lack of trust in financial advisers, low financial literacy, and lack of availability of scaled advice," said Norman Morris, industry communications director for Roy Morgan Research.