The company’s November 2017 Superannuation Satisfaction Report found industry funds had an average satisfaction level of 59.2 per cent, while their retail peers achieved 57.5 per cent.
SMSFs appeared to have the highest satisfaction level of all, with 71.9 per cent, however the report noted that this “is a result of the fact that they really only operate with larger balance accounts, where satisfaction for all super types is higher”.
“By contrast, industry and retail funds also operate with lower balance accounts such as the under $100,000, where satisfaction is much lower,” the report said.
“Although SMSFs are the satisfaction leader in the $700,000+ segment, industry funds lead them and retail funds in balances between $100,000 and $699,999. Retail funds only lead in the under $5,000 segment with 55.3 per cent satisfaction, compared to 46.3 per cent for industry funds.”
Roy Morgan industry communications director Norman Morris said it is important for fund members not to be “influenced by short-term fluctuations in performance across funds”, adding that chasing short-term winners was a “precarious” game.
“Retail funds were holding a narrow lead in satisfaction over industry funds for most of the past year, but in the last three months industry funds have regained the lead that they had been holding for the past decade,” he said.
“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.”
Mmm, I have to say I’m sceptical about these approval ratings.
As a risk only adviser, who pays careful attention to the massive industry superfund advertising campaigns that I simply can’t afford to campaign against, I very much doubt the average punter out there REALLY understands the technicalities of what goes on with with their earnings and the insurance being provided through them.
Do members really think all the advertising campaigns are free and that the massive sponsorships of major sporting codes has no impact on their earnings?
Clients I see who blindly rely on their industry superfund insurance are amazed when I show them what they REALLY have and what’s happening to their cover over time.
I’d like to see members have this stuff explained to them THEN have the same survey conducted to see how industry superfunds rate compared to retail solutions…
That’s exactly why the Labor party wants to make it as difficult as possible for consumers to get financial advice.
SMSF members were very happy with their trustees decision to invest in Australian bank shares, Australian bank cash, and leveraged Australian residential property? No surprise there. But they will be blaming someone else for their misery once the property market corrects and the banks nosedive. The easy money some financial advisers have made by going along with this madness will come back to bite them.