News

Superannuation

SMSFs still top satisfaction levels

superannuation guarantee; retirement

On the back of new financial modelling, a case has been made to increase the superannuation guarantee levy from 9.5 per cent to ensure adequate retirement savings.

The latest Roy Morgan research into the superannuation sector has revealed SMSFs continue to dominate their retail and industry fund counterparts in regard to member satisfaction over financial performance.

The “Roy Morgan July Superannuation Satisfaction Report”, released on Friday, showed 73.8 per cent of those surveyed expressed satisfaction with the financial returns generated by their SMSF – an increase of 2.8 percentage points over the past year.

This compared to 58.7 per cent of participants saying they were satisfied with the financial performance of their retail super fund and 58.2 per cent admitting they were satisfied with how their industry fund was tracking financially.

The result was even more resounding among members with a balance of $700,000 or more.

Within this group, 85.2 per cent of people expressed satisfaction with the financial performance of their SMSF, a jump of 7.7 percentage points over the past 12 months.

Retail funds were again next best with 77.6 per cent of those surveyed saying they were satisfied with the financial performance of their fund, a jump of 4.1 percentage points over the past year, while 76.9 per cent of this sample said they were satisfied with the financial performance of their industry fund, an improvement of 0.3 percentage points.

Industry funds fared better among members with asset balances between $250,000 and $699,999, with 72.6 per cent indicating satisfaction with the financial performance of their fund.

SMSFs followed closely behind with 71.8 of respondents saying they were satisfied with returns on their retirement savings, while 68.9 per cent mirrored this sentiment in regard to their retail fund.

The report also dissected the make-up of the current $2 trillion superannuation pool, finding 58.9 per cent of members had a balance of less than $100,000 and accounted for 14.7 per cent of the country’s total retirement savings assets.

In addition, 3.9 per cent of members had a super balance of $700,000 or more but accounted for 23.8 per cent of the total assets contained in the retirement savings system.

The report enlisted the views of 30,000 members over a 12-month period.

Copyright © SMS Magazine 2022

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital