A squeeze in satisfaction rates for super funds

The unprecedented number of people seeking to talk to their fund, either regarding using the early release scheme or concerned about investment performance in exceptionally volatile times has caused a dip in customer satisfaction.

Roy Morgan research shows increasing customer satisfaction levels long-term, but the results for March 2020 are down. CEO Michele Levine says, "The average satisfaction rating across all superannuation funds is 64.2% in March, a 3.4% increase from a year ago. However, this annual comparison misses a fall of 0.6% in the month of March after the ASX200 market peaked in late February.

"Driving this fall has been a monthly decline of 1.1% for Industry Funds in March. In the last month the concern for Industry Funds and Retail Funds in particular is about how many Australians will take up the Federal Government's $20,000 super fund withdrawal option over the next six months."

Self-managed funds have the most-satisfied members, at 75%, followed closely by public sector funds at 74.5%.

Industry funds come next in the survey, with the 1% decline to 64.4% satisfaction. Retail funds come in last in the list with 60% satisfaction, down slightly in March.

"Industry Funds based on employees in hospitality and retail industries are particularly exposed to this policy as many of their workers have been stood down in recent weeks as Australia fights the COVID-19 coronavirus pandemic.

"A majority of Industry Funds had declining month-on-month satisfaction in March and the challenge for all superannuation funds going forward will be finding ways to maintain customer satisfaction amid trying market conditions, reduced returns and ongoing uncertainty," says Levine.