In a sign that member education campaigns are having an effect, the Mercer Superannuation Sentiment Index is at its highest level since December 2008.
The index increased by nine points from 38 in December 2010 to 47 in September 2011, despite the significant market volatility experienced in August/September 2011.
The majority (77 per cent) of the 1,001 25-65 year-olds surveyed have at least a moderate understanding of volatility, up from 63 per cent in June 2008. In addition, the level of worry about sharemarket volatility has declined – 56 per cent are worried now, compared to 61 per cent in June 2011.
Expectations about superannuation balances are also becoming more realistic, with 48 per cent of respondents expecting their next balance to be higher. Before the global financial crisis in June 2008, almost three-quarters (72 per cent) of members anticipated their next superannuation balance would be higher.
There has also been an increase in member satisfaction with the benefits and features of super funds, with 62 per cent being satisfied (up from 48 per cent in June 2011). Member satisfaction has increased when it comes to fund performance, communication about investment performance, fund trustworthiness and fund security.
Only 12 per cent of members are likely to switch super funds in the next 12 months, according to the report.
Over one-fifth (21 per cent) of members have sought the services of a financial planner in the last two years – and of those, 43 per cent saw an adviser associated with their superannuation fund. The majority of those who sought advice were happy with the services they received (32 per cent very satisfied, 58 per cent satisfied).
Mobile phone applications could be the way forward for funds looking to engage with younger members, with 44 per cent of smart phone users saying they would use an app to receive information about their superannuation.
But for all the positives to come out of Mercer’s research, members are uninformed about the upcoming regulatory changes to the industry, with only 12 per cent having heard of MySuper and even fewer (7 per cent) being aware of Stronger Super.
