Member satisfaction with superannuation performance has fallen year-on-year, Roy Morgan research has revealed.
Overall satisfaction with the financial performance of superannuation declined 0.9 per cent in the twelve months to November, settling at 58.4 per cent – holding flat on October’s satisfaction level.
Both industry and retail funds saw drops in satisfaction levels of 1.2 per cent and 1.4 per cent respectively, with industry funds maintaining a higher level of satisfaction, 59.2 per cent, than retail funds, 56.7 per cent.
“Self-managed funds have the highest satisfaction with 74.3 per cent, down 1.7 percentage points over the last year, followed by public sector funds with 69.8 per cent, up 1.8 percentage points over the last year,” Roy Morgan said.
Self-managed and public sector funds also have a higher number of ‘very satisfied’ members.
“These funds have had a clear lead over retail and industry funds for more than 10 years due mainly to the fact that their members have higher average balances, which are generally associated with higher satisfaction levels regardless of the fund type,” Roy Morgan said.
Overall, less than one in five members considered themselves ‘very satisfied’ with their funds’ performance, which Roy Morgan industry communications director Norman Morris said implied fund members were “not very committed to their current fund”.
Mr Morris also said constant reforms and modifications to the superannuation system was further undermining member confidence.
“The current government’s extensive rule changes to superannuation and pension eligibility are already creating considerable uncertainty among superannuation members about the future of the system,” he said.
“Combined with the likelihood of increased market volatility and relatively low satisfaction with financial performance of funds, this has the potential to reduce member confidence which is essential in such a long-term investment.”
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