Ten per cent of super members plan to swap fund
Approximately 10 per cent of 6,000 surveyed superannuation fund members intend to switch away from their current fund in the next 12 months, a survey has found.
The Customer Service Benchmarking Australia (CSBA) and Fund Executives Association Limited (FEAL) survey, which questioned members from 34 Australian superannuation funds, showed that of that 10 per cent, approximately one third of intended to swap funds for better financial returns or lower fees.
Another third planned to switch due to a change in employment, seeking better customer services or to consolidate multiple superannuation funds.
CSBA superannuation CX research director, David Laffin said that retaining members is increasingly difficult for funds due to increased member expectations and the ease with which members could compare and swap funds.
To respond to this challenge, he said that funds needed to improve trust and loyalty from members. The study found that member loyalty and how much members trusted and felt valued by their funds were strongly linked.
Laffin felt that this was particularly important in regard to young people, as it could lead to longer relationships over their lives.
“Building stronger engagement with younger people gives funds a head-start in building trust, which leads to long-standing relationships. It is important that funds consistently demonstrate that they care about each of their members,” he said.
FEAL chief executive, Joanna Davison said that funds could still try to retain members contemplating switching though improved communication and customer experience.
“Funds may retain members who are considering leaving the fund through great service and proactive education. Communicating the option to take their current superannuation to a new job, and consistently providing experiences that lead members to consolidate with your fund rather than with an alternative fund can improve retention rates,” she said.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
