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Members remain dissatisfied with super funds
A survey of over 4,600 individual superannuation fund members has found no change in satisfaction scores in the last 12 months, after it suffered a large decline last year.
While the Net Promoter Score (NPS) dropped 15 points from July 2021 to February 2022, it has failed to improve since then as of February 2023.
Last October, the organisation stated the customer experience of superannuation had declined in all key measures with particular decline reported in overall satisfaction and ease of dealing, which increased their likelihood to switch fund.
This month's CSBA FEAL Superannuation CX Benchmarking report, which surveyed members from 66 different super funds, found the sentiment to switch funds was on the rise. A quarter of members, compared to 23 per cent during the same period last year, were at high risk of switching funds.
They cited high fees, difficult processes, poor customer service, lack of transparency, and poor returns.
The members with the highest risk of switching were those in a default investment mix, younger members under 55 years of age, and members who had been in their fund for less than five years.
A quarter (31 per cent) of members who have had recent contact with their fund did not believe their fund empowered them to plan and prepare for retirement, with the 34–44-year-old cohort coming up as the weakest link.
“Not only have average scores flatlined, but we also see a shift in the distribution of scores over time. Fewer members are rating satisfaction and ease highly (scores of nine and 10), offset by more members giving lower ratings (scores of zero to six),” explained Sam Monteath, CSBA CX director of finance.
Barring returns, trust continued to be the single most important factor for members. According to the survey, funds that displayed transparency around fees, investment options, and communications rated well in terms of trust.
Funds that proactively reached out to members were found to experience smaller or no declines in performance measures.
“Members want to be proactively kept up to date with performance and understand what actions their fund is taking to mitigate the impact of external market forces,” Monteath said.
“Providing context for any fluctuations in performance is important to instil confidence during periods of uncertainty.”
She also suggested independent exploratory research for funds to gauge a deeper understanding of their member cohort to further develop their communication and retirement strategy.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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