Research: Superannuation Choices too Much in New Job
Recent surveys by Navigator, into people taking up new jobs in Australia, have revealed that many do not make all the necessary preparations for changing jobs.
The survey, conducted by Open Mind research group, involved in depth interviews and discussion groups with men and women aged between 21 and 45 who had joined a new employer in the last six months.
Rob Donaghy, group director, products, marketing and public affairs, said in a statement, “There’s a huge preparation gap when people change jobs…The research revealed starting a new job is stressful enough, without the added hassle of deciding where to allocate your super savings.”
“People have very little time or energy to invest in understanding superannuation requirements in the first few days of a new job.
“Start prepared,” he suggested. “Study your super options before you move.”
The research revealed that most new employees just sign up for the employer’s default fund. The research results suggested that there were three kinds of people at the workplace when it came to making superannuation choices:
The "sloths": Who simply sign the employer’s scheme for ease and convenience.
The "lemmings": Who rely on the opinion of workmates to gain reassurance that they have chosen the right fund.
The "silkworms": Who see the employers fund as the fund for them because it is labelled specifically for their trade or industry. They see fund specialisation as a “cocoon”.
Rob Donaghy said: “Taking the most immediate option does not guarantee the best returns… Subscribing to lots of different funds could mean accumulating unnecessary charges.
|
|
