Will investors change their superannuation fund given the choice?

Fry, Timothy D.; Heaney, Richard; McKeown, Warren

doi:10.1111/j.1467-629x.2006.00203.x

Cited by 37 publications

(28 citation statements)

References 36 publications

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“…The average number of transactions was 0.26 and there was one trade every 3.85 years. However, once a worker participates in a 401 (k) plan he is unlikely to withdraw (Kusko et al 1994) and very few individuals who were enrolled with a default plan would change if they were given the choice (Fry et al 2007). …”

Section: Active Management (10 Papers)mentioning

confidence: 98%

Retirement Saving Choices: Review of the Literature and Policy Implications

Gough

Niza

2011

Population Ageing

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Pension reforms in many countries have resulted in more choice and risk to individuals, decreasing the dependability on State public pensions. However, it is not clear how research has addressed this issue and how much is know about retirement saving decisions. With this paper, we provided two major contributions to the literature on retirement saving. As a starting point, we developed a general chart of retirement saving choices, extending the work of Hurd and Panis (2006). These authors focused exclusively on choices at job change or retirement age and we extended their diagram to all main decisions at each stage of retirement saving, providing a more comprehensive framework. We then used this diagram as the yardstick to perform the systematic review and evaluate the breadth of research in the last 20 years. We found 130 papers and identified the most studied retirement choices and the under-researched areas. Most papers focused on asset allocation, decision to save and contribution rate. Less attention was given to decisions at retirement age and voluntary savings. Furthermore, very few papers studied the psychological and social influences in retirement saving decisions. Policy implications and future research are discussed.

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Section: Active Management (10 Papers)mentioning

confidence: 98%

Retirement Saving Choices: Review of the Literature and Policy Implications

Gough

Niza

2011

Population Ageing

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“…In this approach the factors precipitating a choice are separate, or overlap, with the factors that explain the allocation. Although discussing the broader decision to switch between superannuation funds, Fry et al (2007) use Prospect theory to articulate a persuasive case that given loss aversion the expected benefit/cost ratio needed to be substantial to encourage a switch. This explanation fits the low level of choice observed for Australian superannuation fund members overall, coupled with increase in activity in periods of extreme market movements, for example in October 2008 during global financial crisis (Gerrans, 2012).…”

Section: Available Member Informationmentioning

confidence: 99%

Retirement savings investment choices: Sophisticated or naive?

Gerrans

Yap

2014

Pacific-Basin Finance Journal

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“…As the investors age, there is an indication they tend to become return-chasers. A survey of Australian investors by Fry et al (2007) find support to the behavioral theory of investor inertia, with few surveyed participants showing an interest in changing their superannuation fund. Phillips (2011) recently examines the relative risk aversion coefficient that characterizes the representative self-managed superannuation fund investor.…”

Section: Significance and Scope Of The Researchmentioning

confidence: 99%

Funds Flow and Performance of Managed Funds in Pakistan

Mubeen

Mughal²

2017

ABR

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The main purpose of this study is to examine the mutual fund industry of Pakistan, to examine the assets allocation pattern of mutual funds, how efficiently they are allocated into various assets categories and how investors base their future investment decisions either on past performance or on the basis of risk, size of fund, and availability of alternative investments. On the basis of results it is noted that on average small and medium investors prefer investments in less risky assets and base their future investment decisions on the basis of past performance whereas big corporate investors calculate risk and make their investment decisions after complete analysis. This study uses panel regression model to test the relationship between past performance and excess returns. The results indicate that fund managers use past performance of a fund as marketing tool to attract investors to invest in a fund which are performing well in recent past. These findings are of immense importance for policy makers as well, to formulate policies which are beneficial for investors and do not allow fund managers to get advantage from investors.

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Will investors change their superannuation fund given the choice?

Cited by 37 publications

References 36 publications

Retirement Saving Choices: Review of the Literature and Policy Implications

Retirement Saving Choices: Review of the Literature and Policy Implications

Retirement savings investment choices: Sophisticated or naive?

Funds Flow and Performance of Managed Funds in Pakistan

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