Consumer satisfaction with industry superannuation funds continues to grow, according to a recent survey.
“Industry superannuation funds continue to out-do retail funds for satisfaction with financial performance, with a 60.6% score in the six months to April, compared to 56.9% for retail funds,” said Roy Morgan Research.
According to the same survey the satisfaction level with industry super funds has grown over the last 12 months by 1.5%. Over the same period satisfaction with retail super funds has decreased by 0.1%.
“Industry funds have now had higher satisfaction than retail funds every month since this survey began in 2002,” said Roy Morgan Research.
Satisfaction with both industry and retail super funds increases alongside the size of superannuation balances. 84% of people with balances of $700,000 or more are satisfied with the financial performance of their industry super fund compared to 78% of people in retail funds. This compares to 60.6% satisfaction with industry funds and 56.9% for retail funds, across all balances. Only 47.9% of people with under $5,000 in superannuation are satisfied with the performance of their industry fund, compared to 47.2% in retail funds.
Norman Morris, Industry Communications Director for Roy Morgan Research, said it is “imperative” that industry and retail APRA funds maintain strong connections with members and a focus on performance or high-balance members may switch to SMSFs.
SMSFs have a satisfaction rate of 72.9% over the same period.
Mr Morris said that “poor investment performance and associated issues relating to fees and charges” are factors motivation people to switch their superannuation fund, “so maintaining leadership in satisfaction with investment performance is a critical success factor”.
These findings come from the Roy Morgan Single Source survey, which involved interviews over the six months to April 2016 with 18,261 people who had superannuation.