CoreData’s newly-released 2013 Member Engagement report, which was conducted in April and received 1,173 responses, found that corporate funds led the way, with their members the most satisfied and the most likely to use the fund’s advice services.
Overall satisfaction jumped from 50.8 per cent in the 2012 report to 62.1 per cent. Although retail fund member satisfaction was the lowest of all sectors, BT was rated second best after large industry fund HESTA in first place, and with Q Super in third.
CoreData’s head of advice, wealth and super, Salvador Saiz, said the increase in overall satisfaction is no surprise given the median balanced fund has seen double digit returns.
More than half (54.7 per cent) of respondents were satisfied with their returns, up from 42.1 per cent in 2012, with retail members the least satisfied, he said.
However, despite the improved environment, member engagement barely changed, up from 57.8 on a 100 scale last year to 59.1 in 2013. Q Super achieved the highest engagement score, followed by HOSTPLUS and GESB, CoreData stated.
More than one in five (21.3 per cent) respondents said they would leave their fund if they could get around to it, and for retail funds it was almost one in three (31.1 per cent).
One in 10 respondents said they would consider leaving their main super fund in order to establish a self-managed super fund, with retail fund members most likely to do so.
Only 16.2 per cent of total respondents had used their fund’s financial planning services, with corporate fund members the most likely (26.5 per cent) and industry fund members the least likely (10.8 per cent).
“While the main reason given for not using their fund’s advice services is because they are not currently interested in financial advice (42.8 per cent), what is of concern is that one third are not aware that their fund provides these services,” Mr Saiz said.
“However, close to one third would use their fund’s advice services in future.”
Mr Saiz said members wanted greater frequency of communication, but they also wanted it to be tailored. Email was the preferred method of contact for members, who wanted more frequent and more relevant contact than they are currently getting.
Although contributions increased in the latest survey, two thirds of respondents still did not contribute any extra to their super, with industry fund members again the least likely.
Just over one in four said they were not certain super was a good place to invest their money, with government tinkering the prime driver of that uncertainty. As a result, three quarters do not expect to contribute extra over the next 12 months, CoreData said.
