Industry superannuation funds have maintained their lead over retail super funds in terms of consumer satisfaction with their financial performance, according to the latest figures.
Roy Morgan Research found 61.2% satisfaction for industry funds in February 2018, compared to 59.2% for retail funds. Industry funds held the lead for most of the history of the Roy Morgan survey, though retail funds did have a lead briefly in 2017. Though SMSFs had higher satisfaction than either retail or industry funds, at 73.5%.
There is a range of satisfaction with the largest 15 super funds – Qsuper was at the top of the list with 73.3% satisfaction, compared to 52.2% for Sunsuper at the bottom of the list.
Broken down by superannuation balance, industry funds are ahead of both retail and SMSFs for balances between $250,000 – $699,999 and $700,000 & over. Industry funds are almost tied for satisfaction for balances $100,000 – 249,999, with both ahead of retail funds. Industry funds and SMSFs are ahead of retail funds for balances $5,000 – $99,999, but retail funds are strongly ahead for balances under $5,000 – the only bracket in which retail funds has a satisfaction lead.
“Satisfaction with the financial performance of superannuation generally increases with the balance, with the only exception being for retail funds where satisfaction dips to its lowest (53.2%) in the $5,000 to $99,999 bracket,” said Roy Morgan Research.
“Despite the regular publication of superannuation performance tables, it is unlikely that the majority of fund members will be engaged enough to follow them closely but rather act or not on how they feel about the performance of their current fund. Our research has highlighted the need to measure members’ satisfaction with performance overall and by account balance,” said Roy Morgan Industry Communications Director, Norman Morris.
“For example those with $700,000 or more in superannuation account for only 4.2% of fund members and yet they hold nearly a quarter (24.4%) of total superannuation funds. It is in the higher balances where SMSFs have been performing strongly but where industry funds are potentially posing a threat with their higher levels of satisfaction with performance,” he said.
The Roy Morgan Single Source survey includes over 50,000 people per annum, including more than 30,000 super fund members.