Unadvised switching comes at a cost - and benefit

New research shows that there was a three-fold increase in superannuation members switching investment options between 1 January 2019 and March 2021, with results a double-edged sword. Amongst 42,000 switches, about half were considered ‘bad’ superannuation switching decisions as the pandemic progressed.

The research was conducted to better understand financial literacy, access to financial advice, and decision-making by super members. The results show people were making decisions without advice.

The outcomes of the research include that super funds should be helping members make financial decisions, since switching is so easy to do.