Financial planners are pressing for shorter and simpler disclosure documents amid new research claiming more than three-quarters of customers say the mandatory advice is too long.

IFSA says the product disclosure statement (PDS) is largely ignored by younger investors.

However, readership among older investors seems to be high, with an IFSA survey showing only 10% of consumers didn’t read the PDS before switching to an alternative superannuation fund.

IFSA CEO Richard Gilbert says investors are switching super funds for more than just consolidation reasons. Life insurance is becoming a motivator for seeking a better super product.

More than 60% of those switching super accounts read more than half the PDS, according to the IFSA survey.

“Readership levels are similar to that of mortgage documents, showing that people place the same level of importance in both financial decisions,” Mr Gilbert said.

He says more work needs to be done to improve PDS readability, particularly for younger investors.

“There are clear signals that the industry continues to face challenges when it comes to delivering information to people at a young age. The ‘one size fits all’ style of communication doesn’t appear to be working.”

Labor has pledged to reduce the PDS to about three pages if it wins office, but Mr Gilbert cautions against an over-reaction.

“A significant minority felt that shortening the documents might affect the risk involved in the decision they make. While getting the length right is important, it is clear it’s not the only issue. More important was keeping the language simple, clear and easy to understand.”