Satisfaction with SMSF performance sees slump
While SMSFs remain ahead of industry and retail super funds for satisfaction with performance, satisfaction levels saw a slight dip in last year, according to Roy Morgan.
The Roy Morgan November Superannuation Satisfaction Report indicates SMSFs remain in the lead for satisfaction with financial performance at 71.9 per cent, despite a 2.4 per cent drop in the six months to November 2017.
Satisfaction levels for industry super funds sat at 59.2 per cent, while retail super funds had the lowest satisfaction levels at 57.5 per cent.
The results indicated that for super funds with balances between $100,000 and $699,999, however, industry super funds are ahead of SMSFs for satisfaction.
Satisfaction with performance was only highest for SMSFs with balances greater than $700,000 according to the research. Satisfaction was 83 per cent for SMSFs in this category, 80.7 per cent for industry funds and 77.1 per cent for retail funds.
Roy Morgan industry communications director Norman Morris said that while those members with $700,000 or more in superannuation account for only 4 per cent of fund members, they hold 24.1 per cent of the total funds in superannuation, making an understanding of satisfaction of this group critical.
“It is in this segment that SMSFs are having major success against industry and retail funds and where satisfaction is highest,” said Mr Morris.
“Industry funds currently have higher satisfaction levels than retail funds for all segments over $5,000 and are only narrowly behind satisfaction with SMSFs in the all important $700,000 and over segment.”