The number of Aussies who say they’re staying loyal to their superannuation fund is at a three-year high, according to the latest survey data.
Are you happy with your super fund’s performance? Most likely the answer is yes, if the results of the CSBA Superannuation CX Benchmarking report are anything to go by.
The customer experience consultancy group surveyed 7202 individual members across more than 100 super funds in July and August this year.
They found the ‘intention to switch’ metric had improved since the last survey in February and March, dropping from 25 per cent to 18 per cent.
Improved performance
Sam Monteath, CSBA CX director of finance, says customer loyalty has recovered after taking a battering in recent years and cites improved financial performance as a driving factor.
“The tide has finally turned, with loyalty at its strongest in three years,” she says.
“Those at the highest risk of switching, referring to members who gave a rating of 9 or 10 out of 10 [for the intention to switch metric], fell from 9 per cent to just 5 per cent – the lowest level we’ve seen since 2018.”
Ms Monteath says improvements in fees and the level of customer trust in funds also played a role.
“Outside of performance and returns, trust (26 per cent) and competitive fees and charges (23 per cent) were the single most important factors driving loyalty, with both factors at their highest levels in the four years since measurement started,” she says.
Not everyone was happy
But it appears not every group shares the same positive sentiments about their super fund. The data showed those in the 45-54 age group – in other words, those approaching retirement age – were the least satisfied with their fund in almost every category.
These categories include overall satisfaction, feeling valued by their fund, retirement empowerment and retirement confidence.
Ms Monteath says this result shows there is an opportunity for funds to engage more with members approaching retirement age, to ensure their retirement plans are still on track.
She says the report shows too many fund trustees have not conducted enough personalised, in-depth analysis of individual members’ needs, which is now required of them under the Retirement Income Covenant (RIC).
“Now’s the time for funds to act,” she says.
“They need to dig deep using independent qualitative research. This will allow them to understand the attitudes of all their member cohorts, to deliver exceptional experiences that add value and support.
“[The RIC] is a huge opportunity for purposeful engagement with those in or nearing retirement. Schedule information sessions; offer personalised attention; give them access to subject matter experts – meet them where they are.”
Are you satisfied with your super fund? What would it take to make you switch? Let us know in the comments section below.
Also read: What to consider before switching super funds
