Consumer satisfaction up for SMSFs, down for industry funds

New data from Roy Morgan has shown self-managed superannuation and public sector funds both increased their customer satisfaction rates in March, despite significant market upheaval, but their industry and retail counterparts were not so lucky.

           

Self-managed super funds received the highest level of customer satisfaction (75 per cent), up by 0.3 of a percentage point from February, while public sector funds increased by 0.3 of a percentage point to 74.5 per cent. 

In contrast, industry fund satisfaction fell by 1.1 per cent in a month to 64.4 per cent, while retail funds were down by 0.2 of a percentage point to 60 per cent. 

Roy Morgan chief executive Michele Levine said that although longer-term trends show increased customer satisfaction levels, shorter term it is a very different picture.

“The average satisfaction rating across all superannuation funds is 64.2 per cent in March, a 3.4 per cent increase from a year ago,” Ms Levine said.

“However, this annual comparison misses a fall of 0.6 [of a percentage point] in the month of March after the ASX 200 market peaked in late February.

“Driving this fall has been a monthly decline of 1.1 per cent for industry funds in March.”

She noted the early super withdrawal option over the next six months will add to further challenges for the retail and industry funds.

“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,” Ms Levine said.

“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.”

 

 

Sarah Simpkins
24 April 2020
smsfadviser.com

 

 

More Articles

TRANSITIONING INTO RETIREMENT: WHAT YOU SHOULD KNOW

Deciding on your retirement funding options comes down to personal choice. . If you’re close to...

Read full article

The Deadliest pandemics in History

Check out the Deadliest pandemics in...

Read full article

Middle-to-higher incomes boosting SMSF growth

The SMSF sector experienced healthy growth over the March quarter, with men and women on middle-to-higher...

Read full article

The superannuation changes from 1 July

The super changes on the way from the start of the 2024-25 financial year. . A number of...

Read full article

Investment and economic outlook, May 2024

Region-by-region economic outlook and latest forecasts for investment returns. . For the last...

Read full article

Downsizer contributions can be time critical

With the expansion of the downsizer contribution, the timing of when it is used can affect how to use...

Read full article

Deeming freeze a win for Age Pensioners

Why the decision to keep deeming rates on hold may be a window for interest rates.   . In...

Read full article

Plan now to take advantage of stage 3 tax cuts

With the stage three tax cuts set to be implemented in around six weeks, opportunities for tax-saving...

Read full article

Sofie Korac is an Authorised Representative (No. 400164) of Prudentia Financial Planning Pty Ltd, AFSL 544118 and a member of the Association of Financial Advisers.

Financial Advice Sydney and the North Shore Office based in Gordon NSW

Financial Services Guide - Disclaimer & Privacy Policy

^