Aussies consolidate super savings
Australia's major super funds have seen their new member growth rates fall to an all time low of just 1.7 per cent in 2009/10, new research shows.
A study by SuperRatings notes that the result is less than 30 per cent of the growth rate of 6.1 per cent enjoyed by funds before choice was introduced in July 2005.
It also the first time ever that the new member growth rate is lower than the growth in the available labour force, meaning that in real terms, super fund membership is going backwards.
SuperRatings commented that Australians appeared to have got the message that multiple accounts are of no benefit to them, and as a result are minimising their fees by taking super from job to job. Aussies aiming to grow their long-term income could also choose to compare savings accounts in search of the best interest rates.
Managing director of SuperRatings, Jeff Bresnahan, said: "The days of super funds growing by just catching the cheques as they flew by are long gone. Every new member will need to be won, whilst funds will increase their costs to fight tooth and nail to retain those that they currently have.
"Right now, it looks like the bigger funds, with their bigger budgets, are coming out on top in the grab for members."
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