Industry super funds have seen strong growth in consumer satisfaction, according to statistics compiled by Roy Morgan.
Industry super funds saw improved consumer satisfaction with their financial performance in the 12 months to June 2018, the statistics show. The highest satisfaction growth was for super balances of $700,000 or more, which improved by 9.5% to 87.5%. For balances between $5,000 and $699,999 satisfaction improved by between 3.1% and 5.0%.
The only balance sector where retail funds outperform industry funds was for balances under $5,000 – 60.1% (up 10.9%) for retail to 48.1% (up 0.8%) for industry funds.. Though this sector represents only 0.1% of all superannuation balances.
Satisfaction with the financial performance of SMSFs was down across all recorded segments – down 18.3% for $100,000-$249,999, down 0.8% for $250,000-$699,999 and down 1.9% for $700,000+. Though SMSFs still out-rank retail funds for balances over $250,000.
“The superannuation sector is currently receiving a great deal of adverse publicity in the finance Royal Commission, particularly in relation to fees, advice, minimum balances for self- managed super, industry funds etc,” said Norman Morris, Norman Morris, Industry Communications Director with Roy Morgan.
“The extensive publicity given recently to the end of financial year performance for individual superannuation funds, has generally shown that industry funds have been the best performers, this is in line with the satisfaction data we have shown here.”
“Superannuation satisfaction is a vital part of understanding the behaviour of members as it is unlikely that the vast majority will be actively engaged enough to be reading performance tables. It is more likely that it is how they feel regarding the performance of their fund that will ultimately determine their actions.”
Roy Morgan’s Satisfaction with Financial Performance of Superannuation in Australia Report June 2018 is drawn from a broader survey involving face-to-face interviews with over 50,000 consumers.