Ten per cent of super members plan to swap fund

A survey of over 6,000 superannuation fund members has found that approximately 10 per cent of members intend to swap fund in the next 12 months, a recent survey has revealed.

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.

Related News:

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.

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 regarding 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.




Related Content

Govt takes regulatory option on work test exemption

The Federal Government has used its regulatory powers to give recent retirees an extra year to contribute to superannuation under the work test exempt...Read more

APRA urged to validate outcomes test metrics

Major consultancy, KPMG has urged the Australian Prudential Regulation Authority (APRA) to provide superannuation funds with more specifics to enable ...Read more

Adequacy of member servicing the key question

The economics of adequately servicing members should be the paramount issue for superannuation funds contemplating mergers, according to a new survey ...Read more

Author

Comments

Add new comment