Self-managed superannuation funds remain the clear winner in the consumer satisfaction stakes, the latest findings from independent researcher Roy Morgan Research show.
Satisfaction with the financial performance of the superannuation sector in the six months to December 2013 was 52.6% – up 6% since December 2012.
Roy Morgan interviewed 17,036 people with superannuation in the six months to December 2013 to get the results.
SMSFs are still leading at giving consumers the most satisfaction, with 71.9% of people with an SMSF
saying they are satisfied with the financial performance of their fund choice.
However, consumer satisfaction levels dropped 1.4% for SMSFs in the second half of the year. SMSFs were the only funds whose satisfaction levels dropped.
The next happiest consumers were those with their money in public sector funds, with 61.2% saying they are satisfied, up 2.9% in the six months to December 2013.
Consumer satisfaction with industry super funds rose 3.5% in the second half of the year, with 53.5% now reporting they are satisfied.
This is followed fairly closely by those with their money in retail funds, with 51.2% saying they are satisfied. Consumer satisfaction rose 6.5% in the year’s second half.
At a retail brand level, an increase in satisfaction has been seen in the 12 months to December 2013 across the major retail brands, with the biggest improver being MLC, from 39.2% to 54.7%. AMP
increased from 35.8% to 47.7% and ANZ-owned OnePath increased from 37.2% to 47.1%.
The fact that consumers are most satisfied when they have an SMSF bodes well for the sector’s expansion due to people switching.
“With growing competition between the industry and retail funds for market share and the rapid expansion of the SMSF sector, satisfaction with financial performance is increasingly a factor that fund managers should be taking notice of, Roy Morgan’s Norman Morris said.
“Our research shows that there is a strong correlation between satisfaction with superannuation financial performance and the likelihood of switching funds.”