The latest research into the superannuation industry has shown satisfaction levels for SMSF members increased in March despite the fall the ASX 200 experienced as a result of the COVID-19 pandemic.
The Roy Morgan “Superannuation Satisfaction Report” revealed satisfaction levels among SMSF members experienced a 0.3 percentage point increase, moving from 74.7 per cent in February to 75 per cent in March.
The report also reflected growing satisfaction with public sector super funds. These vehicles also enjoyed a 0.3 percentage point increase in satisfaction levels, rising to 74.5 per cent in March compared to 74.2 per cent in February.
By contrast, industry and retail funds both registered a drop in their satisfaction levels last month.
Industry funds experienced the greatest decrease in satisfaction levels, falling from 65.5 per cent in February to 64.4 per cent in March. Satisfaction with retail funds fell to a lesser extent, recording a level of 60 per cent, down from 60.2 per cent in the previous month.
From a year-on-year perspective, overall satisfaction with super funds reflected positive sentiment, Roy Morgan chief executive Michele Levine noted.
“The average satisfaction rating across all superannuation funds is 64.2 per cent in March, a 3.4 per cent increase from a year ago. However, this annual comparison misses a fall of 0.6 per cent in the month of March after the ASX 200 market peaked in late February,” Levine said.
“Driving this fall has been a monthly decline of 1.1 per cent for industry funds in March. In the last month the concern for industry funds and retail funds in particular is about how many Australians will take up the federal government’s $20,000 super fund withdrawal option over the next six months.
“A majority of industry funds had declining month-on-month satisfaction in March and the challenge for all superannuation funds going forward will be finding ways to maintain customer satisfaction amid trying market conditions, reduced returns and ongoing uncertainty.”
