Low retirement confidence, decline in satisfaction among Super fund members: new CSBA report

The customer experience of Super fund members declined in all key measures, and retirement empowerment weakened, the latest results of the CSBA FEAL Superannuation CX Benchmarking report have found.

The report, comprising surveys of 5,426 individual fund members from 20 Superannuation funds conducted in July and August 2022, also found that only 59% of those aged 55 and over had a high degree of confidence they would have enough money for a comfortable retirement.

Net Promoter Score (NPS) for All Funds included in the study dropped 11 points from +26 to +15, compared with the same period in 2021. 

Overall Satisfaction fell from 8.1 to 7.7, Ease of Dealing fell from 8.3 to 8.0, and the Likelihood to Switch Funds rose from 17% to 23%.

One in three members disagreed that their fund empowered them to plan and prepare for retirement, compared to one in four in 2021.

And the confidence in having enough money for a comfortable retirement was low, scoring 6.6 out of 10. This dropped to 6.3 for females (6.9 for males) and 5.7 for members without recent fund contact (6.6 for members with recent fund contact).    

CSBA CX Director of Finance, Sam Monteath said that while it was no surprise to see current market volatility negatively impact member sentiment, it was now crucial for funds to proactively offer members reassurance using timely and meaningful interactions.

“Acknowledging members’ specific concerns in the current climate; transparent communication around investments and fees; and age-appropriate communication using their channels of choice, are key to building trust and loyalty,” she said. 

“Especially since ‘Trust’, ‘Excellent Financial Returns’ and ‘Making Members Feel Valued’ continue to be the top three key drivers of Overall Satisfaction and NPS.”

Intention to switch is on the rise 

When asked about their past switching considerations and intentions to remain with the fund in the year ahead, 25% of members with recent fund contact said they had considered switching funds in the last 12 months. And of those who considered a switch, 63% said they would likely complete the switch in the next 12 months. Compared to the same period last year, 18% of members considered a switch and 49% of those intended to switch in the year ahead. 

The 35-44 age group is at the highest risk of switching, with 30% indicating they were likely to switch in the next 12 months, compared to 22% in the same period last year. The 25-34 age group is also a high-risk group, with 26% indicating they were likely to switch in the next 12 months (unchanged from last year).

Trust featured heavily as both a key reason to stay with a fund long-term (24%) and as one of the most apt descriptors of one’s fund (29%) – “I trust them to act in my best interests.”

Retirement empowerment has weakened

In the area of retirement empowerment, 33% disagreed that “The fund empowers me to plan and prepare for my retirement” compared to 27% in the same period in 2021.

Across the demographic groups, under 55s, females, shorter-term members, and those in a default investment mix were more likely to disagree their fund empowered them.  

The power of making meaningful interactions

Timely and meaningful interactions are critical in adding value and building trust and loyalty.

“Be proactive. Use the right customer insights, personalise your approach and create timely opportunities to engage each customer,” said Monteath.

“Members want relevant information and reassurance that they are with the right fund for them.” 

For more information about the CSBA FEAL Superannuation CX Benchmarking program, email sam.monteath@csba.com.au

About CSBA FEAL Superannuation CX Benchmarking

The program began in 2009 as an initiative between CSBA, FEAL, and Melbourne Business School, to provide fund executives with comparative scores for key customer experience measures using a robust and consistent methodology on a regular basis. The latest six-monthly study conducted in July and August 2022 included surveys of 5,426 individual fund members from 20 Superannuation funds and almost 1000 employers which found similar changes in customer sentiment.

About CSBA – The Customer Experience Experts www.csba.com.au

For more than two decades, CSBA has helped organisations of all shapes and sizes create better customer experiences through independent, specialised CX strategy, research, insights, quality assurance, and training.

CSBA now works with more than 150 clients across 15 different industries, including specialised programs for higher education, local government, superannuation, energy, and water sectors.