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Decrease in super fund satisfaction breaks record high
According to Roy Morgan, member satisfaction in superannuation funds decreased from 72% in January 2022 to 66.6% during February 2023.
The market research firm’s superannuation satisfaction report revealed a 5.4% decrease in overall satisfaction from January’s record high just over a year ago.
Despite this, the figure was still higher than the long-term average of 57.9% from 2007–23.
The decrease in satisfaction during September 2022 to February 2023 was largely due to the five interest rate hikes in that period, resulting in a total 1.5% increase.
Moreover, the report followed the Australian Financial Complaints Authority (AFCA) announcement that super complaints increased by 11% in 2022.
Michele Levine, Roy Morgan chief executive, noted the impact of increased M&A activity in the super landscape on member satisfaction.
“One of the key messages coming through from these mergers is the importance of communication and a smooth transition process for members throughout,” she said.
“The premium on maintaining a high degree of customer satisfaction and providing better investment returns will only increase.”
The research house found UniSuper and HESTA members were the most satisfied out of any of the industry super funds. This was followed by AustralianSuper, Hostplus, Australian Retirement Trust, REST Super, Cbus, Catholic Super, and CareSuper.
Industry funds declined in satisfaction by 6.3% to 67.9% from January 2022, the largest decline in any of the categories.
Macquarie was the highest placed retail super fund, followed by MLC, OnePath, Colonial First State, Suncorp, Mercer, and AMP.
Public sector funds experienced a 5.7% satisfaction decrease in February, alongside self-managed super funds (SMSFs) down by 5.3%.
However, SMSFs’ satisfaction rate of 74.7% was the highest rate out of all the categories.
The CEO forecasted a “challenging environment” ahead due to inflationary pressures as well as emerging instability in financial markets following the collapse of Silicon Valley Bank, Signature Bank, and Credit Suisse.
AUTHOR
Jasmine Siljic
Jasmine Siljic is a cadet journalist at Money Management and Super Review. Prior to joining MM and SR, she also worked across other Momentum Media brands as an intern. Jasmine previously completed an internship at Mamamia news. She is currently studying a Bachelor of Media and Communications at Macquarie University.
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