How engaged are super fund members?

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SS&C’s has released its latest Whitepaper Driving member engagement and loyalty with digital communications.

SS&C’s has released its latest Whitepaper Driving member engagement and loyalty with digital communications. The survey – SS&C first superannuation stealth survey – found that Australia’s super funds enjoy a fairly healthy level of satisfaction from members. However, it was found there is little room for complacency with super funds missing opportunities to capitalise on member loyalty through more effective use of digital communication channels, educational resources and planning tools.

The survey looked at members’ relationships with their funds, notably communication preferences, frequency of contact, transaction efficiency, and awareness of resources and tools available. Respondents represented a wide demographic spectrum, from age 18 to over 70. Some of the survey’s key findings were:

  • Super satisfaction varies with age: younger members have neutral to negative feelings about their super funds compared to older members. Overall 75% of respondents expressed satisfaction with their current super fund and 88% have no intention of moving to another fund.
  • Strong preference for digital communication: while the majority of transactions and communication with super funds occurs through digital channels (74%), there is a push by younger members, especially those aged 18 to 30 years, for all of these activities to move online (94%). In addition, 32% of respondents reported they were only able to transact / communicate with their super fund using hard copy or via paper forms.
  • Need to better/more frequent engagement: funds are missing opportunities for meaningful engagement with (27%) saying they have contact with their superannuation provider only once a year, while 25% have a quarterly connection. Surprisingly, 4% of respondents said they have “never” heard from their fund provider – a small number, but an alarming answer.  In addition, the vast majority of respondents (80%) have not accessed any retirement planning tools on their super fund’s website, with almost two-thirds of respondents (59%) unaware how these tools will assist them. Further evidence of the lack of engagement between super funds and young members, 73% of respondents in the 18 – 30 age group, reported they were not aware of how these tools would assist them in their retirement planning.
  • Motivation to move to a new fund: while most respondents weren’t looking to move to a new fund, motivators to move included, Poor investment performance was the number-one factor, cited by 38% of respondents, while 31% cited poor customer service.

Read the Whitepaper.

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