Super fund satisfaction drops to 65% in July 2023 – down 7% points from record high 18 months ago in January 2022
New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 65% in July 2023 – a decrease of 7% points from the record high reached one-and-a-half years ago in January 2022 (72.0%).
Despite the decrease over the last year and a half superannuation satisfaction is still significantly higher than the long-term average of 58.1% from 2007-2023 and also higher than at any time prior to the pandemic years of 2021-22 when the measure was at record highs. However, superannuation satisfaction is now at its lowest for two-and-a-half years since December 2020 (64.8%).
The high satisfaction ratings during the last two years are no surprise with the ASX200 peaking at 7,628.9 on August 13, 2021, and again, almost as high, at 7,558.1 on February 3, 2022. The index closed at 7,410.4 at the end of July 2023, down almost 150 points (-2%) since the recent high reached in February 2023.
The period covered by these ratings is from February 2023 – July 2023 which included four RBA interest rates increases totaling +1% lifting official interest rates to 4.1% - the highest in over a decade. The increases have been caused by the higher than expected inflation readings which were at a 32-year high of 7.8% in the year to December 2022 – the highest since March 1990.
Satisfaction with superannuation funds: 2007-2023
Source: Roy Morgan Single Source Australia, April 2007 – July 2023, n=16,527 for every six month period. Base: Australians 14+ with work based or personal superannuation.
Customer satisfaction is down most for Public Sector Funds compared to January 2022 peak
Customer satisfaction for Industry Funds in July 2023 is down by 7.4% points to 66.8% from 18 months ago in January 2022 and down 5.6% points to 74.4% for Self-Managed Funds – although this is still the highest customer satisfaction of any of the four super fund categories.
Overall customer satisfaction for Public Sector Funds has declined by 7.9% points from a year-and-a-half ago in January 2022 to 71.2% - the largest decline for any of the super fund categories – and the lowest customer satisfaction for Public Sector Funds since September 2020 nearly three years ago.
The customer satisfaction of Retail Funds has declined by 7.3% points from 18 months ago in January 2022 to 59.6% although this is still significantly higher than the long-term average customer satisfaction for Retail Funds of only 54.9%.
The report’s findings are from Roy Morgan Single Source, Australia’s most trusted consumer survey, compiled by in-depth interviews with over 60,000 Australians each year.
Satisfaction with financial performance of different type of super funds
Source: Roy Morgan Single Source Australia, August 2021 – January 2022, n=20,366, February – July 2023, n=23,145. Base: Australians 14+ with work based or personal superannuation.
Roy Morgan CEO Michele Levine says customer satisfaction with superannuation funds (65.0%) is down from the record high reached 18 months ago in January 2022 but nevertheless remains well above the long-term average customer satisfaction over the last 15 years of 58.1%:
“Roy Morgan’s superannuation customer satisfaction ratings for the six months to July 2023 show industry satisfaction at 65%, down 7% points from the record high of 72% reached 18 months ago in January 2022. Despite the fall, customer satisfaction remains well above long-term average of 58.1% and higher than at any point prior to 2021.
“The drop in customer satisfaction from early last year has occurred as the ASX200 experienced a period of volatility since mid-2021. The ASX200 reached a high of 7,628.9 on August 13, 2021, and fell by almost 1,200 points when the index closed at 6,433.4 on June 20, 2022. Since the middle of last year, the ASX200 has significantly recovered and closed at 7,410.4 at the end of July.
“There have been declines across all categories from the record highs reached early in 2022. Retail Funds are down 7.3% points to 59.6% and are the lowest rated category, while Industry Funds dropped 7.4% points to 66.8%.
“Although both have experienced a drop in satisfaction compared to early last year Self-Managed Funds on 74.4% (down 5.6% points) and Public Sector Funds on 71.2% (down 7.9% points) remain the two sectors with clearly the highest satisfaction – well above the overall average.
“In recent years, many superannuation funds have merged or announced their intention to merge. These mergers include AustralianSuper taking over LUCRF, HESTA merging with Mercy Super, Unisuper taking over Australian Catholic Super, Active Super merging with Vision Super, HOSTPLUS merging with Statewide, Sunsuper, QSuper and Australia Post Superannuation Scheme (APSS) merging to form Australian Retirement Trust and many other mergers.
“Roy Morgan has extensive data on the impacts these mergers have on the customer satisfaction of the super funds involved in the mergers and acquisitions. One of the key messages coming through from these mergers is the importance of communication and a smooth transition process for members throughout.
“The superannuation industry will continue to consolidate in the years ahead as larger players in the market look to increase their clout and the amount of assets they have under management in an increasingly competitive industry. For these larger and more complex superannuation funds to maintain a high degree of customer satisfaction and better investment returns will be more important than ever before.
“Looking forward there are several challenges facing the Australian economy including the risk of a slowdown in China impacting on Australia’s largest commodity exports – iron ore, coal and gas as well as concerns about the value of commercial real estate as increasing numbers of Australians continue to work from home.
“In addition to these challenges there is also the continuing concern about the high level of inflation in Australia – recently estimated by the ABS to be at 6.0% in the year to the June quarter 2023. Although this is down from the 32-year high of 7.8% in the year to December 2022, inflation is still well above the target range of 2-3% over the course of the cycle.
“If inflation were to remain elevated at these levels in the period ahead that would increase pressure on the RBA to increase interest rates once again despite a widespread expectation that Australia’s cycle of interest rate increases has now ended.”
For comments or more information about Roy Morgan’s superannuation data please contact:
Roy Morgan Enquiries
Office: +61 (3) 9224 5309
askroymorgan@roymorgan.com
Related research findings
For further in-depth analysis, view the Superannuation Satisfaction Report.
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Roy Morgan is Australia’s largest independent Australian research company, with offices in each state, as well as in the U.S. and U.K. A full-service research organisation, Roy Morgan has over 80 years’ experience collecting objective, independent information on consumers.
Margin of Error
The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.
| Sample Size | Percentage Estimate |
| 40% – 60% | 25% or 75% | 10% or 90% | 5% or 95% | |
| 1,000 | ±3.0 | ±2.7 | ±1.9 | ±1.3 |
| 5,000 | ±1.4 | ±1.2 | ±0.8 | ±0.6 |
| 7,500 | ±1.1 | ±1.0 | ±0.7 | ±0.5 |
| 10,000 | ±1.0 | ±0.9 | ±0.6 | ±0.4 |
| 20,000 | ±0.7 | ±0.6 | ±0.4 | ±0.3 |
| 50,000 | ±0.4 | ±0.4 | ±0.3 | ±0.2 |
