Industry super funds have extended their satisfaction lead over retail super funds.
Roy Morgan has found that the member satisfaction gap between retail and industry funds has widened from 1.6% to 4.8%.
Between January 2018 and January 2019 the satisfaction with industry funds improved by 1.4%, from 60.7% to 62.1%. Meanwhile satisfaction with retail funds fell 1.8%, from 59.1% to 57.3%.
Eight of the top ten super funds by satisfaction with their financial performance are industry funds.
Norman Morris, Industry Communications Director with Roy Morgan, drew a connection with the recent recommendations of the Productivity Commission. In its report the Commission recommended that new entrants to the workforce be shown a ‘best-in-show’ shortlist of super funds.
“An important consideration in determining which superannuation funds will be in the top ten as proposed by the Productivity Commission, is that with market fluctuations they are subject to regular changes or re-ranking,” Morris said.
“As superannuation is a very long term process, it is likely that over a number of decades there will be a large number of ranking changes. This will increase uncertainty and confusion in member choice in an industry that already lacks member engagement. It is more likely that members want a simplified system rather than one subject to continuous change and decision making.”
“This research shows that fund member ratings should be taken into account as input in determining the top ten, as they have the final decision on choice of fund.”
“The overall assessment of satisfaction of satisfaction with financial performance by fund members clearly ranks the industry funds ahead of retail funds, similar to the pattern seen in published performance tables but this survey has the added advantage of being able to understand more about the members behind the ratings.”
The statistics come from Roy Mogan’s Single Source survey, which the company says is “based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 30,000 with superannuation”.