Your first day in a new job is generally spent finding the amenities, the coffee machine and your car park.
Your first day in a new job is generally spent finding the amenities, the coffee machine and your car park. Then you’re asked to sign up for superannuation.
Are you going to exercise your right to choose where your super goes? Have you planned for your future security?
The answer is likely to be "no" on both counts, according to recent focus group surveys undertaken by Navigator.
The survey was conducted by Open Mind research group and involved in-depth interviews and discussion groups of men and women aged 21 to 45 who had joined a new employer in the last six months. They represented a variety of industries.
“There’s a huge preparation gap when people change jobs,” said Rob Donaghy, group director, products, marketing and public affairs. “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 also found most new employees simply sign up for the employer’s default fund.
“Some were automatically rolling over old funds to the new employer, others were simply collecting funds as they changed jobs,” said Rob. “Few were actively engaged in the decision-making process.”
Additionally, the findings revealed that superannuation choices divided the workplace into three kinds of people, and made the following analogies:
The "sloths": They simply go with their employer’s scheme due to ease and convenience. “All you have to do is sign – that was a common reason offered by the respondents,” said Rob.
The "lemmings": These rely on the opinions of workmates. Many respondents check with work colleagues to see if they are in the fund, for reassurance. ”They seem to figure that ‘everyone else is in the fund so it must by okay’ and don’t give the matter any further thought,” said Rob.
The "silkworms": For those whose employer’s fund is labelled specifically for their industry or trade, they see the fund specialisation as a "cocoon". “They think this must be the fund for me because this is my kind of job,” Rob said.
“Taking the most immediate option does not guarantee the best returns,” said Rob. “Subscribing to lots of different funds could mean accumulating unnecessary charges.
“You prepare yourself for a new job by researching your new employer and perhaps buy a new outfit. Why not prepare for your future security by making a decision about your super beforehand, too?” said Rob.
For those unsure about which super fund is the best choice for them, a financial adviser can offer guidance depending on their individual circumstances.
-ends-
For further information please contact:
Simon Morgan
Group General Manager Public Affairs
Phone: (03) 9829 8892
Mobile: 0407 966 632
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world's fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$86.8 billion, and more than A$786.2 billion of assets under management (as at 7 July 2006). The group has approximately 59,000 employees and 30 million customers worldwide.
- The information in this document reflects Navigator Australia Limited's ('Navigator') ABN 45 006 302 987 understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. A PDS is available from NULIS or your financial adviser. Applications to invest in investment product(s) through the investor directed portfolio service ("IDPS"), operated by Navigator, must be made by completing the application form attached to the applicable IDPS Guide Offer Document and Investment Allocation Authority. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.