Super fund satisfaction misses out on record highs: Roy Morgan

In November 2023, overall super fund satisfaction stood at 65.9 per cent, an increase of 0.9 percentage points from July 2023 (65 per cent).

New data from Roy Morgan’s Superannuation Satisfaction Report found that November’s figure still cleared the long-term average of 58.2 per cent for member satisfaction from 2007–23.

However, it could not surpass the record satisfaction levels reported in January 2022, at 72 per cent.

Overall customer satisfaction for public sector funds declined by 3.2 percentage points from a year ago to 70.7 per cent – the largest decline for any of the super fund categories.

Meanwhile, customer satisfaction of retail funds declined by 2.7 percentage points to 58.9 per cent – the lowest it has been in over three years, but still higher than the long-term average customer satisfaction for retail funds of only 55 per cent.

Roy Morgan noted that retail fund satisfaction continues to be the worst-performing out of any of the four categories.

Industry fund customer satisfaction in November was down by 1.4 percentage points to 68.2 per cent compared to a year ago, however, this is the smallest decline of any of the four super fund categories.

However, the standout performance over the 12 months was self-managed funds, which increased 1.9 percentage points to 75.8 per cent.

This, the report highlighted, was the highest level of customer satisfaction for self-managed funds for 18 months since May 2022.

“Despite the increase in recent months, overall customer satisfaction with superannuation funds remains down 6.1 percentage points from the record high of 72 per cent reached two years ago in January 2022,” Roy Morgan chief executive Michele Levine noted.

“The drop in customer satisfaction from early 2022 has occurred as the ASX 200 experienced a period of volatility since mid-2021. The ASX 200 reached a high of 7,628.9 on 13 August 2021, and fell by almost 1,200 points when the index closed at 6,433.4 on 20 June 2022. Since the middle of 2022, the ASX 200 has recovered and closed at 7,087.3 at the end of November 2023.”

Looking at individual funds, UniSuper took first place for highest customer satisfaction for the six months to November 2023, but Levine observed that UniSuper’s 0.2 percentage point increase was only just enough to stay ahead of HESTA (up 6.1 percentage points) and CareSuper’s (up 6.1 percentage points) notable improvements.

AustralianSuper (up 2.1 percentage points) and UniSuper (up 0.2 percentage points) came in behind the two frontrunners for net change over the same period.

“In recent years, many superannuation funds have merged or announced their intention to merge,” Levine added.

“Roy Morgan has extensive data on the impacts these mergers have on the customer satisfaction of the super funds involved in the mergers and acquisitions. One of the key messages coming through from these mergers is the importance of communication and a smooth transition process for members throughout.

“The superannuation industry will continue to consolidate as larger players take steps to increase their clout and the amount of assets they have under management in a highly competitive industry. For those larger and more complex superannuation funds to maintain a high degree of customer satisfaction and better investment returns will be more important than ever before.”