Australians are more satisfied with their superannuation funds now than at any point since December 2008.
According to the latest Mercer Superannuation Sentiment Index, increased member satisfaction, reduced levels of concern about share market volatility and more realistic expectations of future superannuation balances drove a nine-point increase in the overall “sentiment score”, between December 2010 and September 2011.
In a statement, Mercer said working Australians had shown a considerable improvement in their understanding of the effects of share market volatility on superannuation, with the majority (77 per cent) showing at least a moderate level of understanding, up from 63 per cent in June 2008.
At the same time, fear of market volatility and unrealistic expectations of high returns have both declined.
The survey suggests efforts by the superannuation industry, the Government and the media had all assisted in educating members about superannuation and helped significantly in improving widespread engagement.
Mercer’s study also revealed Australians’ trust in their superannuation fund has increased, with 57 per cent rating this as “very good/excellent”, demonstrating an 11 percentage point increase since December 2010.
Employees are also showing a significant increase in satisfaction with the benefits and features of their super fund, with 62 per cent being “satisfied”, up from 48 per cent in December 2010.
Heather Dawson, leader of the Mercer Super Trust, said the survey results suggest working Australians are becoming more astute about their super.
“Empowering members with knowledge has gone a long way to alleviating angst in the midst of volatile market conditions,” she says.
“There is increased understanding of the impact share market volatility has on super, but while sentiment has significantly improved from previous years, super funds will need to continue building loyalty and engagement with members.”
Mercer’s survey also found Australians are increasingly reliant on superannuation to fund their retirement – with respondents anticipating 49 per cent of their retirement funding will be sourced from superannuation, up from an average of 43 per cent in December 2010.
This increase has come at the expense of other sources, namely investments and other assets, and puts a greater emphasis on servicing the client.
“We saw many super funds stay in touch with their members through daily website updates during the peak of the market volatility as well as dealing with an extraordinary high number of calls to contact centres and website traffic. This is certainly evidence of greater engagement,” Dawson says.
Mercer’s Superannuation Sentiment Index is based on an online survey of 1,001 full-time working Australians aged 25-65 years and was conducted between 27 September and 4 October, 2011.
