Despite the COVID-19 pandemic and the trenchant criticisms of Coalition back-benchers, superannuation fund members have largely maintained their levels of confidence in their superannuation funds with many more engaged than ever.
That is the bottom line of the latest Investment Trends 2020 Super Fund Member Sentiment research which revealed that, industry wide, members’ overall satisfaction with their super fund only declined marginally in the past year.
The Investment Trends analysis said that this was despite headwinds from the pandemic and recent legislative changes with the data revealing a composite satisfaction score of 67%, down slightly from 68%).
What is more, the highest-rated super funds were ESSSuper (82%) and UniSuper (80%) remain the highest rated super funds, while Australian Catholic Super (77%) overtook Cbus (76%) for third spot.
Commenting on the research Investment Trends senior analyst, King Loong Choi, said super funds had done well to maintain member satisfaction levels despite unprecedented macro headwinds.
“At the industry level, the communications provided by super funds during the pandemic have been effective in lifting satisfaction ratings and reducing associated satisfaction gaps. However, there is still room to improve the frequency and quality of communications outside of annual statements,” e said.
Choi said that in the aftermath of the equity sell down in early March, half of super fund members believed it would take 12 months or longer for their super balance to recover fully. Less than a quarter (23%) expect a full recovery by the end of 2020.
“The global pandemic and its resulting market volatility have prompted Australians to pay closer attention to their super. Their engagement with their super investments is growing, meaning that super fund members are now more active stewards of their money,” he said,
“As members scrutinise their super balance and performance more closely, it is important that super funds continue keeping members informed, educated and confident in weathering heightened market volatility,” said Choi.