Wednesday, July 2nd, 2014 - Roy Morgan Research

Satisfaction with the financial performance of superannuation in the six months to May 2014 was 55.1%, up 7.2% points since May 2013. Self-Managed Super Funds (75.6%) remain the clear leader, followed by Industry Funds (55.8%) and Retail Funds (53.7%). These are the latest findings from the May 2014 Roy Morgan Research ‘Superannuation Satisfaction’ report based on over 30,000 interviews with people per annum with Superannuation.

Retail funds have made ground on their Industry rivals with regards to satisfaction with financial performance of superannuation increasing in the period May 2013 to May 2014 from 44.6% to 53.7% (+9.1% points), compared with Industry funds increasing from 49.4% to 55.8% (+6.4% points), with SMSFs increasing from 72.4% to 75.6% (3.2% points) over the same period.

Satisfaction with the Financial Performance of Superannuation

super-satisfaction

Source: Roy Morgan Single Source (Australia), 6 month rolling, average sample size = 15,500. Base: Australians 14+ with Superannuation.

At a Retail brand level, Colonial First State (57.3%) led the major brands with the biggest improver being MLC, from 43.6% to 55.9% (+12.3 % points).

Satisfaction with the Financial Performance of Retail Superannuation Funds

satisfaction-retail-funds

Source: Roy Morgan Single Source (Australia), 6 months to May 2014 n = 15,229; 6 months to May 2014, n = 14,816. Base: Australians 14+ with Superannuation.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“With the expansion of the SMSF sector, satisfaction with financial performance is increasingly a factor that fund managers should be taking notice of. It appears that satisfaction with superannuation has a lot to do with the amount in super and the consequential level of engagement.

 

“It is worth noting that even when the larger balances held in self-managed funds are allowed for, their satisfaction remains higher than other funds. The majority of self-managed funds have balances over $250,000 and when satisfaction is compared to industry and retail fund members with balances over this amount they are still well ahead. For amounts over $250,000, self-managed funds scored 78.3% satisfaction, industry funds rated 71.4% and retail funds were well behind with only 66.4%. It is not surprising therefore that retail funds are losing out to self-managed funds at the big end.

 

“The ease of switching super funds and the increase in people using SMSFs mean that the Retail sector will increasingly rely on their adviser network and advice to retain customers. Our research shows that there is a strong correlation between satisfaction with superannuation financial performance and the likelihood of switching funds.”

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Keywords

superannuation, banking, finance, colonial first state, mlc

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