New research by Industry Super Australia has found that more than two-thirds of Australians would prefer fewer than 20 investment options for their super fund, and 58 per cent want less than 10 options, well below the hundreds of choices offered by many major funds.

It found that Millennials and women are the most likely to want less choice, while Baby Boomers are less confused but more cynical — with 67 per cent believing that big bank-owned super funds use detail to confuse people.

“The younger you are, the less choice you actually want,” said Industry Super Australia chief executive David Whiteley.

This could partly because retirement seemed distant for younger people, he said, but added that most Australians felt confused. “Too much choice creates inertia. People may seek advice that isn’t in their best interest.”

Mr Whiteley said anyone thinking about super should look at long-term investment returns — over seven to 10 years — and be sceptical when offered a huge choice.

“People may find the balanced fund or the default fund is offering better long-term returns,” he said.

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“It’s one thing to find that the public recognises there is too much choice and it hinders their decision making. It’s another thing for the public to conclude that it’s a deliberate strategy.”

Alex Dunnin, director of research at Rainmaker SelectingSuper, said he would be cautious of labelling choice overload as a tactic to confuse, as choice was common in many industries including energy, telecommunications, new cars and entertainment.

“The finance sector has a habit of creating more and more choices — it’s a bit like Netflix constantly putting more stuff on its platform,” he said.

“There’s an avalanche of investment choice available … for people who love that stuff it’s great but you are probably only talking about 15-20 per cent of people at most.”

For everyone else, extra choice was unnecessary when all they wanted was simplicity and their fund to run their money in a default option, Mr Dunnin said.

He said MySuper funds — simpler, cheaper superannuation where employers must put your money if you haven’t chosen a fund — helped address the issue, and big financial institutions were trying to build more basic funds.

“Some banks now have simpler, low-cost products out there because they want to take on the Industry Super Funds head-on.”

People should contact their super fund or check its website if they wanted less choice and simpler super, Mr Dunnin said.

@keanemoney