Retirement
Top-rating super segments revealed
Data from the last quarter shows how the various types of superannuation funds are rating on the satisfaction scale for Australians.
Top-rating super segments revealed
Data from the last quarter shows how the various types of superannuation funds are rating on the satisfaction scale for Australians.
Over the six months to October 2018, industry super funds lead retail funds in overall customer satisfaction by 3.6 percentage points.
Over the same time period, satisfaction with the financial performance of industry funds increased by 2.7 percentage points to 61.8 per cent, while retail funds gained just 1.3 percentage points to score an overall satisfaction rating of 58.2 per cent.
The fine print
The data, which came from Roy Morgan’s Satisfaction with Financial Performance in Superannuation in Australia Report October 2018, found that retail funds only surpass industry funds in satisfaction ratings for balances below $5,000.
In this segment, they lead marginally with 49.0 per cent in comparison to industry fund’s 48.6 per cent.
However, the report suggests that the under $5,000 segment “is of little current value” as it accounts for just 0.1 per cent of total market value despite encompassing 10.9 per cent of customers.
“As a result of this skew, we can see that improving satisfaction among the lowest value groups is unlikely to gain significant funds in the short term,” the report states.
While both industry super funds and retail funds recorded their highest satisfaction levels for balances of $700,000 or more, industry funds lead retail in the segment by 4.6 percentage points.
Alongside this, industry funds have their largest lead of 10.9 percentage points in the $250,000 to $699,999 group.
Although only 4.3 per cent of fund members are in the $700,000 or above segment, they account for nearly a quarter of market value (24.4 per cent). Added to the $250,000 to $699,999 group, and this segment makes up 63.8 per cent of all funds.
“[This]… gives them a much greater potential if satisfaction can be lifted,” the report notes.
“Retail super funds and their providers have been taking the brunt of the adverse publicity regarding superannuation and wealth management generated by the finance royal commission,” said Norman Morris, industry communications director at Roy Morgan.
“This publicity has the potential to adversely impact satisfaction ratings relative to industry funds, which have received very little attention. In addition, published performance tables on superannuation generally show industry funds have been performing better than retail funds.
“Despite these negative factors having the potential to impact on relative satisfaction ratings between retail and industry funds, satisfaction for both has actually improved over the last 12 months. It is worth noting, however, that satisfaction to date is unlikely to have fully factored in the current declines in the stock market and property values.
“Superannuation satisfaction plays a vital part towards understanding the behaviour of fund members, as it is unlikely that the majority will be actively engaged enough to be reading performance tables. It is more likely that it is how they feel regarding the performance of their fund that will ultimately determine their actions.
“These findings have also shown the importance of understanding satisfaction levels not just overall but across different balance ranges, due to the fact that success with the high-value members is likely to show the greatest gains in fund volumes,” he concluded.
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more