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Superannuation
Retail fund satisfaction drops

Customer satisfaction will retail funds fell by 2.5% while satisfaction in industry funds rose 0.2%, according to new data from Roy Morgan's Superannuation Satisfaction Report.

The report shows an overall super fund satisfaction with financial performance rating of 61.6% in July.  The figure is down 1.3 percentage points on the previous month but unchanged from 61.7% in July 2019.

The report found industry funds have been the standout over the last year and was the only sector to increase customer satisfaction, up by 0.2 percentage points to 63%.

Satisfaction with public sector funds fell marginally, by 0.4% to 71.4% but still retains the highest rating of any sector.

Customer satisfaction with retail funds declined 2.5 percentage points to 54.9% but easily the biggest decline was felt by self-managed super funds, down a significant 10.4% points to 67.1%.

In the same period last year those with SMSFs were the most satisfied but is now at its lowest in eight years since September 2012.

The report found UniSuper has the highest customer satisfaction rating out of the industry funds, followed by CareSuper, AustralianSuper, Hostplus, HESTA, Cbus, Sunsuper, First State Super and Rest.

The highest placed retail fund was Colonial First State followed by BT, OnePath, MLC and AMP.

Roy Morgan chief executive Michele Levine said July 2020 was well into the period of reopening for most of Australia, although it was also the month Victoria was returned to a Stage 3 lockdown in response to a second wave of COVID-19.

"Australia's superannuation funds have had a challenging year with millions of people opting to withdraw up to $10,000 in funds in response to the COVID-19 pandemic and associated shutdowns," Levine said.

"The volatile share-markets so far during 2020 as well as the withdrawal of around $33 billion so far have placed immense pressure on Australia's superannuation funds but their performance has held up well."

Levine said the customer satisfaction results are often reliant on the performance of the Australian share-markets which dropped significantly in March but have since been stable for nearly four months.

Read our full COVID-19 news coverage and analysis here.

Read more: Roy MorganMichele LevineAustralianSuperBTCareSuperCbusHESTAHostplusOnePathSunsuperUniSuper
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