The Roy Morgan Single Source survey for the 12 months to August, based on interviews with 50,000 consumers, showed employers still play a major role, accounting for 60 per cent of the market.

Roy Morgan said the default fund option provided by employers is still the most common choice for consumers.

Intermediaries, like financial advisers, only account for 32 per cent when it comes to superannuation products.

Employees being put into default superannuation accounts is often at the heart of savings-drains, like Australians holding multiple superannuation funds.

The Productivity Commission found that one-third of all accounts, 10 million in total, are rather duplicate accounts unintentionally held by members. Such accounts, the report explained, erode the balances of members by $2.6 billion a year through unnecessary fees and insurance.

Alongside this, rivalry between funds across both the default and choice segments was found to be lacking, with product proliferation and a range of underperforming funds limiting competition for consumers and resulting in at least 1.6 million accounts in default options potentially losing half of their balance by retirement.

Proposed changes

Under the changes proposed by the commission, those new to the workforce would be able to elect their own super product from a “best in show” shortlist of funds developed by an independent expert panel.

Once allocated to the default fund of their choice, the member will remain with the same fund for life unless they choose to change.

So far, this proposal has had a mixed reaction from the superannuation market, which you can read more about here.

more on this topic

Superannuation

Payday super reform hailed as transformative win for Australian workers

In a significant shift for Australia's retirement savings landscape, the introduction of the Payday Super regime on Wednesday, 1 July, marks a transformative change in how superannuation payments are ...Read more

Superannuation

Many Australians to miss out on EOFY super boost due to affordability and knowledge gaps

As the end of the financial year looms, a significant number of working Australians are poised to miss out on the chance to enhance their superannuation savings. A recent survey commissioned by global ...Read more

Superannuation

Aware Super restructures leadership as Ian Pendleton steps down

In a significant leadership reshuffle, Aware Super is bidding farewell to its long-serving Group Executive Legal and Company Secretary, Ian Pendleton, as he steps down from his executive role after 14 ...Read more

Superannuation

Half of Australians unaware of impending superannuation law change set to impact millions

In a surprising revelation, a recent study has highlighted a significant knowledge gap among Australian workers regarding a major superannuation reform set to affect over 1.2 million people from 1 ...Read more

Superannuation

Rest strengthens investment strategy with seasoned executive appointment

In a strategic move to bolster its investment strategy, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Andy Moser as the Head of CIO Office. This newly created ...Read more

Superannuation

NGS Super strengthens leadership with appointment of new Chief Member Officer

In a strategic move to bolster its member growth and experience transformation, NGS Super has appointed Adam Parsons as the new Chief Member Officer (CMO). Effective from 1 June 2026, Parsons will ...Read more

Superannuation

Aware Super triumphs at Chant West Super Fund Awards with top honours

In a significant achievement for Aware Super, the fund has clinched top honours at the Chant West Super Fund Awards, securing both the Super Fund of the Year and Pension Fund of the Year titlesRead more

Superannuation

NGS Super rolls out enhanced member advice services with a focus on accessibility

In a significant move to make financial advice more accessible, NGS Super has unveiled an enhanced suite of member advice services, featuring a new digital advice platform. This initiative aims to ...Read more