Australians do not trust banks with their superannuation
70% of Australians believe all super funds should be not-for-profit.
A new survey commissioned by Industry Super Australia has revealed that less than a third (31%) of Australians believe banks will ensure the superannuation system works in the customers' best interest.
In comparison, 61% of consumers trust the Fair Work Commission with their nest egg and even more people – 69% – trust industry super funds.
Industry Super Australia chief executive David Whiteley says, “Australians have told us what they think – they don’t trust the banks and believe their culture and profit motive are at odds with the purpose of super.”
Over half (58%) of Australians believe the banks would use the compulsory nature of super to exploit members, and the same amount (57%) would prefer a small number of high-quality funds run by trusted providers, rather than more bank funds.
The findings come shortly after the Australian Securities and Investments Commission (ASIC) announced it was taking Westpac’s wealth management arm BT Financial Group to federal Court for allegedly breaching advice laws when cross-selling superannuation products.
“Consumers know aggressive cross-selling of advice, insurance and super is designed to boost shareholder profits rather than leave them better off,” said Whitley.
“The banks’ relentless lobbying to remove consumer default protections could result in people ending up in under-performing funds and a nest egg that’s tens, even hundreds, of thousands of dollars short.”
If you’re not happy with your superannuation, consider switching to an industry super fund which is run to benefit members instead of shareholders.