Retirement
SMSFs, retail fund members can’t get no satisfaction
Industry fund members are happiest, and getting happier, while retail fund members’ and SMSFs’ satisfaction slides, new data has shown.
SMSFs, retail fund members can’t get no satisfaction
Industry fund members are happiest, and getting happier, while retail fund members’ and SMSFs’ satisfaction slides, new data has shown.
According to the latest figures from Roy Morgan, savers with less than $5,000 in super are more likely to be satisfied with a retail fund, but across all other groups industry funds are the favourite.
“The superannuation sector is currently receiving a great deal of adverse publicity in the finance royal commission, particularly in relation to fees, advice, minimum balances for self-managed super, industry funds etc,” Roy Morgan industry communications director Norman Morris said.
“The extensive publicity given recently to the end of financial year performance for individual superannuation funds, has generally shown that industry funds have been the best performers, this is in line with the satisfaction data we have shown here.”
Savers with the largest balances were, unsurprisingly, the most likely to be happiest with their funds across all groups, with industry funds scoring 87.5 per cent satisfaction among those with at least $700,000, retail funds scoring 77.9 per cent and SMSFs scoring 82.7 per cent in the six months to June 2018.
SMSFs not looking so good
SMSF satisfaction has fallen across all savings brackets, with the fall most pronounced in the $100,000-$249,999 bracket (minus 18.3 per cent on the year before).
The results follow the Productivity Commission’s findings that low balance SMSFs generally deliver “materially lower returns”, and data from the corporate regulator finding that nine in 10 SMSF professionals fail to meet best interest requirements.
“Superannuation satisfaction is a vital part of understanding the behaviour of members as it is unlikely that the vast majority will be actively engaged enough to be reading performance tables,” Mr Morris said.
“It is more likely that it is how they feel regarding the performance of their fund that will ultimately determine their actions.”
Savers want to switch more than ever
According to another super fund satisfaction report from Investment Trends, Australians’ intention to switch funds is at a record high, with 7 per cent considering a move in the next year.
That’s up from 5 per cent in previous years, the 2018 Super Fund Member Sentiment and Communications Report found.
“The growing intention to switch super funds is predominantly driven by younger Australians, with 16 per cent of those aged between 18 and 34 saying they intend to do so,” said Investment Trends senior analyst King Loong Choi, noting that high fees are the main factor (30 per cent) driving Millennials away from funds.
“Ethical and socially responsible investing is gradually gaining popularity (14 per cent), and super funds that cater to this growing demand will stand out among younger Australians,” he added.
RELATED ARTICLES
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
