SMSFs top the charts in satisfaction rating

SMSFA CEO Peter Burgess told SMSF Adviser when it comes to investing and making financial decisions, SMSF members are typically more engaged than others.

“We know higher levels of engagement often lead to better outcomes,” he said.

“So it’s not surprising SMSFs have the highest satisfaction rating among all types of super products. There is also a certain sense of satisfaction and achievement that comes with being in the driver’s seat.”

Neil Sparks, head of membership and corporate development for the SMSFA, said the major attraction of SMSFs is the control members have over their savings and investments, which in the current economic climate is becoming more appealing.

“An SMSF is about much more than a means of entry into the property market. In essence, it’s about two things: choice and control,” he said.

“Establishing an SMSF gives you total control as trustee of your superannuation. That means work, decisions and ultimate responsibility.

“As a trustee, you have a fiduciary duty to act in the best interest of your other members and beneficiaries and sole responsibility for the administration and compliance of your fund. It doesn’t matter how many professionals you engage, get it wrong and you will pay the price.”

The data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 65 per cent in July 2023 – a decrease of seven percentage points from the record high reached 18 months ago in January 2022 (72.0 per cent).

Despite the decrease over the last 18 months, superannuation satisfaction is still significantly higher than the long-term average of 58.1 per cent 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 when it stood at 64.8 per cent.

The latest satisfaction rating research, which surveyed 23,145 Australians aged 14 or older with work-based or personal superannuation, took place from February to July 2023 and straddled four successive Reserve Bank of Australia (RBA) interest rate rises.

Roy Morgan CEO, Michele Levine, said the merger of many super funds in recent years has had an impact on the satisfaction rating of many funds.

“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,” she said.

“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.”