Queenslanders ahead of the pack in seeking advice on super

Queenslanders, take charge of your finances today and life will be sweeter in the future

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Queenslanders, take charge of your finances today and life will be sweeter in the future.

What do Queenslanders like to talk about around the dinner table, at the pub or while they're having a barbie with their mates? The footy, fishing, holidays, kids … the usual stuff. But a new survey reveals there’s a topic that is discussed in Queensland more than anywhere else in Australia - superannuation.

Not only do Queenslanders talk more about their super with friends and family, they are more likely to act on advice they receive from their mates. The findings come from a survey of 2000 people commissioned by superannuation fund QSuper in a bid to examine the influence of word-of-mouth on superannuation decision-making.

The research was instigated after QSuper was named Australia’s most recommended super fund for the second year in a row by Engage Strategy, which found that 23 per cent of respondents chose their super fund after a tip from a family member, friend or colleague. It was this reliance on informal advice that QSuper wanted to investigate further.

What QSuper discovered was that Queenslanders were significantly more likely to have received advice about their super from friends and family. More than 70 per cent of those living in the Sunshine State said they'd received recommendations from these informal sources, compared to 62 per cent elsewhere in the country.

What's more, Queenslanders were much more likely to have made decisions based on those tips (59 per cent) compared with other Australians (50 per cent). Confirming the State’s affection for super as a water-cooler topic, the survey also found that Queenslanders were significantly less likely to have never received advice about their nest eggs through word-of-mouth (29 per cent) than the rest of Australia (38 per cent).

Independent financial educator Nicole Pedersen-McKinnon said the survey showed Queenslanders were wiser than their interstate cousins in seeking information about super from a wide range of sources.

“No doubt people are getting the message that life will be sweeter in the future if you take charge of your finances today,” she said. “The earlier you sort out your super the easier and cheaper that sweet life will be.”

The survey found that 83 per cent of super fund members Australia-wide would recommend their fund to others, and their willingness to do so was based on the following, in order of importance: their fund’s financial performance; positive personal experiences; the reputation of the fund and its advisers; transparency in fees and other product information; range of products.

“It is interesting that trust in the superannuation industry is so high,” said Ms Peterson-McKinnon. “It shows that super funds are investing in member services, in particular, and making us feel warm and fuzzy.”

She said the high frequency of word-of-mouth recommendations and actions taken because of them was understandable.

“People will naturally turn to those they trust for advice, because they believe their friends and family have their best interests at heart,” she said.

“But a word of caution … while a real-life recommendation is great, be aware that the investment option your friend or relative is endorsing may not be the one that suits you best.

“For instance, younger people will most likely be getting recommendations from an older relative who will have a different appetite for risk than someone with their whole working life ahead of them.”

Would you recommend your super fund to a friend?

To help you decide whether your super is on track and your fund is worthy of a glowing endorsement, Ms Pedersen-McKinnon offered the following five-point checklist:

1. Fees: Think about it … what you pay comes directly out of what your future-self will get to spend. What sort of hip-pocket hit are we talking? The corporate watchdog says paying a fee of just 1 percentage point more could slice up to 20 per cent from your super balance (over 30 years).  
2. Performance: What your super earns is the other variable that affects the size of your fun fund. DON’T fall into the trap of going for last year’s best-performing fund; it may well fall to near-bottom this year. You want the long-term legend.    
3. Investment options: Here’s where you need to get smart about the tips you take … because the fund that’s been right for a friend or family member, may not be the one that’s right for you. Your age and risk appetite will make a difference.
4. Member services: When it comes to super, a bit of hand-holding doesn't go astray - it's important stuff. Look for extra assistance like free seminars, online advice ... and call centres that make you feel important and informed. 
5. Insurance: If you’re really young or really experienced (read: far older), do you really need all the insurance inclusions on offer? The premiums should be worth it.

The bottom line is, find the fund and investment option that makes you feel super relaxed about your future. 

Originally published as Queenslanders ahead of the pack in seeking advice on super