Super members not so satisfied

The latest Superannuation Satisfaction Report from Roy Morgan has found while super fund satisfaction remains above the long-term average, it dropped in February to 66.6 per cent.

While February’s measure was only 5.4 per cent lower than the all-time high of 72 per cent recorded in January 2022 and is higher than any time prior to the pandemic’s start in 2021, superannuation satisfaction has hit its lowest point since December 2020 (64.8 per cent).

The report also found Unisuper and HESTA outdid their industry fund counterparts including AustralianSuper, HOSTPLUS, Australian Retirement Trust, REST Super, Cbus, Catholic Super and CARE Super to record the highest customer satisfaction ratings.

Seeing a 3.5 per cent increase in customer satisfaction since January 2022, Macquarie was the highest rated retail super fund and was followed by MLC, OnePath, Colonial First State, Suncorp, Mercer and AMP.

“The drop in customer satisfaction from a year ago has occurred as the ASX200 experienced a period of volatility since mid-2021,” Michele Levine, Roy Morgan chief executive, said.

“The ASX200 reached a high of 7,628.9 on August 13, 2021, and fell by almost 1,200 points when the index closed at 6,433.4 on June 20, 2022. Since the middle of last year, the ASX200 has significantly recovered and closed at 7,258.4 at the end of February.

“There have been declines across all categories from the record highs reached just over a year ago. Retail Funds are down 5.6% points to 61.3% and are the lowest rated category, while Industry Funds dropped 6.3% points to 67.9% – the largest drop of any of the four types of super.”

The data also revealed that despite experiencing a fall in satisfaction compared to early last year, self-managed super funds (SMSFs) and public sector funds were the highest-rated sectors with 74.7 per cent and 73.4 per cent respectively.

“Over recent years, as well as dealing with a volatile share-market, many superannuation funds have merged or announced their intention to merge,” Levine said.

“These mergers include Unisuper taking over Australian Catholic Super, HESTA merging with Mercy Super, Active Super merging with Vision Super, HOSTPLUS merging with Statewide and many other mergers.

“One of the key messages coming through from these mergers is the importance of communication and a smooth transition process for members throughout.

“As the industry continues to consolidate in the years ahead, we are set to see more such mergers and acquisitions as the larger players look to increase the amount of assets they have under management in an increasingly competitive industry. The premium on maintaining a high degree of customer satisfaction and providing better investment returns will only increase.”