How satisfied are you with your super fund? Probably not very, if a recent survey of super fund members is anything to go by.
A benchmarking survey of almost 5500 Australian super fund members across 20 different funds – compiled by customer experience consulting group CSBA CX – has found that customer satisfaction has declined across all key measures, Financial Standard is reporting.
Overall customer experience dropped from 8.1 (out of 10) to 7.7, and the likelihood of a member switching funds in the near future grew from 17 per cent to 23 per cent.
In addition, 25 per cent said they had considered switching in the past 12 months and 63 per cent said they’re likely to consider their options in the next 12 months.
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Compare to this last year’s survey, where just 18 per considered a switch.
It might be tempting to blame this dissatisfaction on the economic climate, but it actually seems the problem may lie with the funds themselves.
Only 59 per cent of members aged 55 and over said they had a high degree of confidence that they would have enough money to be comfortable in retirement.
A further 33 per cent in this age bracket said their super fund had not done enough to help them plan and prepare for retirement, up from 25 per cent in last year’s survey.
Even interactions with super funds seem to have deteriorated, with members rating the ‘ease of dealing with a fund’ at 8.0, down from 9.5 last year.
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The results certainly track with the YourLifeChoices Older Australians Insights Survey 2022, which found that only 17 per cent of respondents found their super fund helpful during the retirement planning process.
Sam Monteath, CSBA CX director, says it’s on the funds to ensure their members feel confident in their investment. He says they need to do better in their personal dealings with members, and even how they market themselves.
“Acknowledging members’ specific concerns in the current climate; transparent communication around investments and fees; and age-appropriate communication using their channels of choice, are key to building trust and loyalty,” she says.
“Especially since ‘trust’, ‘excellent financial returns’ and ‘making members feel valued’ continue to be the top three key drivers of overall satisfaction.”
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Pre-retiree confidence should be helped by the government’s Retirement Income Covenant (RIC), which came into effect on 1 July. The legislation forces all super funds to formulate a clear and detailed plan for each member on how they are going to build enough savings for retirement.
The plan will need to detail how the fund intends to maximise expected retirement income over your intended period of retirement.
It will also need to list how they will manage expected risks to the sustainability and stability of this retirement income, including longevity risks, investment risks and inflation risks.
In short, the RIC puts the onus on super funds to ensure you’re on the right track to having enough funds to cover your expenses for your whole retirement.
It remains to be seen how this will impact retirement outcomes and super fund satisfaction, but hopefully it’s a step in the right direction. Are you satisfied with your super fund? What could they be doing better? Let us know in the comments section below.