Super fund satisfaction improves since low in July 2023 with strong performances from HESTA, Unisuper & CARE Super
New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 65.9% in November 2023 – an increase of 0.9% points from the last reported result in July 2023 (65.0%).
Despite hitting a low point in July 2023 superannuation satisfaction is still significantly higher than the long-term average of 58.2% 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.
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 7,087.3 at the end of November 2023, down over 420 points (-5.6%) since the high reached in February 2023.
The period covered by these ratings is from June 2023 – November 2023 which included two RBA interest rates increases totaling +0.5% lifting official interest rates to 4.35% - the highest official interest rates for 12 years. The increases have been caused by the higher-than-expected inflation readings during 2021-2023 – although inflation has now fallen to 4.3% - the lowest since January 2022.
Satisfaction with superannuation funds: 2007-2023
Base: Australians 14+ with work based or personal superannuation.
Customer satisfaction is down most for Public Sector and Retail Funds compared to a year ago
Overall customer satisfaction for Public Sector Funds has declined by 3.2% points from a year ago to 70.7% - the largest decline for any of the super fund categories.
Customer satisfaction of Retail Funds has declined by 2.7% points to 58.9% and this category continues to have clearly the lowest customer satisfaction of any of the four categories. Customer Satisfaction for Retail Funds is now at its lowest for over three years since November 2020 although still higher than the long-term average customer satisfaction for Retail Funds of only 55%.
Customer satisfaction for Industry Funds in November 2023 is down by 1.4% points to 68.2% compared to a year ago, however this is the smallest decline of any of the four super fund categories.
A standout performer over the past year has been Self-Managed Funds which have increased their customer satisfaction by 1.9% points to 75.8% and clearly the highest customer satisfaction of any of the four super fund categories. This is the highest level of customer satisfaction for Self-Managed Funds for 18 months since May 2022.
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
Roy Morgan CEO Michele Levine says customer satisfaction with superannuation funds (65.9%) has improved in recent months after reaching a low of 65% in July 2023 and is well above the long-term average customer satisfaction over the last 15 years of 58.2%:
“Roy Morgan’s superannuation customer satisfaction ratings for the six months to November 2023 show overall industry satisfaction at 65.9%, an increase of 0.9% points since the recent post-pandemic low of 65% reached in July 2023.
“The improvement in recent months has been driven by impressive increases for Industry Funds, up 1.4% points to 68.2%, and Self-Managed Super Funds, up 1.4% points to 75.8% – the highest customer satisfaction of any category.
“Several industry funds have performed exceptionally well in recent months led by HESTA (an increase in customer satisfaction of 6.1% points since July 2023), CARE Super (+6.1% points), AustralianSuper (+2.1% points) and UniSuper (+0.2% points). UniSuper continues to be the superannuation fund with the highest customer satisfaction of all and now just ahead of both of CARE Super and HESTA.
“However, despite the increase in recent months, overall customer satisfaction with superannuation funds remains down 6.1% points from the record high of 72% reached two years ago in January 2022.
“The drop in customer satisfaction from early 2022 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 2022, the ASX200 has recovered and closed at 7,087.3 at the end of November 2023.
“There have been declines across all categories from the record highs reached early in 2022. Retail Funds are down 8% points to 58.9% and are the lowest rated category, and at their lowest level of satisfaction for over three years since November 2020. Public Sector funds have also experienced a large decline in satisfaction over this period, down 8.4% points to 70.7%.
“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 and QSuper formalized their merger to become Australian Retirement Trust on 28 February 2022, the APSS merged with Australian Retirement Trust on 30 April 2022 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 as larger players take steps to increase their clout and the amount of assets they have under management in a highly competitive industry. For those 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.”
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.
Roy Morgan Customer Satisfaction Awards
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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 |
