The latest data from Roy Morgan’s Superannuation Satisfaction Report has revealed an overall super fund satisfaction rating of 65 per cent in July, a decrease of 7 percentage points from the record high of 72 per cent reached in January 2022.
While this month’s figures still surpasses the long-term average of 58.1 per cent, which spans from 2007 to 2023, superannuation satisfaction is now at its lowest since December 2020 (64.8 per cent).
Commenting on the findings, Roy Morgan chief executive officer Michele Levine attributed the drop in customer satisfaction to the period of volatility that the ASX 200 has experienced since mid-2021.
“The ASX 200 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 ASX 200 has significantly recovered and closed at 7,410.4 at the end of July,” Ms Levine explained.
Satisfaction by sector
According to Roy Morgan, customer satisfaction for industry funds in July was down 7.4 percentage points from January 2022, now reading at 66.8 per cent.
Meanwhile, self-managed super funds were also down from 18 months prior, with a loss of 5.6 percentage points to 74.4 per cent. However, this was still the highest customer satisfaction of any of the four super categories.
Overall, customer satisfaction for public sector funds declined by 7.9 percentage points from January 2022 to 71.2 per cent – the largest decline for any of the super fund categories – and the lowest customer satisfaction for public sector funds since September 2020.
Retail funds experienced a decline of 7.3 percentage points to 59.6 per cent, although this is still significantly higher than the long-term average customer satisfaction for retail funds (54.9 per cent).
Speaking on the data, Ms Levine noted that in recent years, many super funds have merged or announced their intention to merge.
“One of the key messages coming through from these mergers is the importance of communication and a smooth transition process for members throughout,” Ms Levine said.
“The superannuation industry will continue to consolidate in the years ahead as larger players in the market look to increase their clout and the amount of assets they have under management in an increasingly competitive industry.
“For these 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,” she concluded.
