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Big balance customers happier with industry funds
Industry superannuation funds hold a clear lead over retail funds among high-end customers with balances of $250,000 or more, Roy Morgan research showed.
The Roy Morgan Single Source survey revealed industry funds' biggest lead is at the big end with balances between $250,000 and $700,000. The satisfaction rate is for industry funds is 73.6 per cent, compared to 65.1 per cent among retail funds.
"The outcome of the intense competition in the superannuation market between industry funds and retail funds will ultimately be decided by consumers," Roy Morgan Research industry communications director Norman Morris said.
"It is this top segment that is the primary group facing significant losses to self-managed superannuation funds, making it imperative that both industry and retail funds maintain a strong connection with them if they are to avoid losses."
Morris added that underwhelming investment performance, and high fees and charges will drive customers to switch super providers.
Customers with $5000 or more showed a 53.5 per cent satisfaction rate with industry funds, compared to a 49.8 per cent satisfaction rate with retail funds.
Those with $700,000 or more in their super make up only 2.5 per cent of people with super but have 16.6 per cent of total balances, while those with $250,000 or more comprised of over half of all funds (51.3 per cent) but represent only 14.4 per cent of total customers.
Three major funds recorded below the average satisfaction rate of 56.6 per cent. SunSuper came in at 53 per cent, REST Super was 49.2 per cent and HOSTPLUS notched up 47.2 per cent.
Cbus finished first at 63.3 per cent, followed by Unisuper at 61.3 per cent. Australian Super was at 57.4 per cent.
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