Super funds are on the rise and everyone's noticing

Happy excited Black mixed-race couple celebrating success at laptop

February brought a win for super funds and their members, with SuperRatings reporting a solid 1.8% increase for the median balanced option. This boost isn't just for the month; it's part of a bigger trend that's seen a 6.7% rise over the first eight months of the financial year. 

With superannuation returns looking up, it's no wonder member satisfaction is on the rise too. Roy Morgan's latest stats show a jump to 66.7% satisfaction in January 2024, recovering nicely from previous dips.

Super performance meets member satisfaction

Super funds have been on their A-game, with growth options seeing a 2.3% bump in February, and even the more conservative capital stable options notching up by 0.7% according to Super Ratings. Pension options are sharing in this positive trend too, with balanced pensions up by about 1.9%.

SuperRatings executive director Kirby Rappell highlights the resilience of super funds amid other financial uncertainties: “Super fund returns remain much less volatile than equity markets demonstrating the benefits of diversification and the ability of funds to weather these market conditions with competitive outcomes for their members.”, Rappel said.

This uptick in funds’ performance is clearly translating into happier vibes from members. Roy Morgan's research backs this up, showing a clear connection between the financial performance of super funds and the rising satisfaction levels among their members. Chief executive of Roy Morgan, Michele Levine ties these satisfaction gains directly to the financial sector's overall performance, emphasising the importance of super funds excelling in both customer satisfaction and financial returns.

“In an increasingly competitive industry, it is more important than ever before for larger and more complex superannuation funds to maintain high levels of customer satisfaction and market-leading investment returns.”, Levine said.

Line graph showing the satisfaction with financial performance of superannuation funds from 2007-2024
Source: Roy Morgan

What this means for you and your super

As super funds continue to perform well and satisfaction ratings rise, you might be wondering how this all impacts your own super and what steps you should consider next. Here are some tips taking into account the current super landscape:

  • If you’re feeling good about your fund. Great! It’s a sign your fund is managing well despite market fluctuations. Still, it’s wise to regularly review its performance against your long-term financial goals. Ensure it aligns with your retirement plans and risk tolerance.
  • If you’re not as satisfied. If your fund's performance hasn't lived up to expectations, or returns don’t align with the broader market’s gains, it's a good time to reassess. Remember, switching funds should be a well-considered decision based on more than just recent performance.
  • Consider the impact of mergers. With many funds merging, it’s important to stay informed about any changes to your fund. Are you still getting the same level of service and returns? Sometimes mergers can lead to improved efficiency and returns, but it’s something to monitor.

Whatever you decide to do, it’s important to remember that past performance is not a reliable indicator of future performance, and switching funds or investment options should not be done lightly.

“For those members thinking about changing their investment option, it is important to consider how long they will be investing for and the level of risk they are willing to take on. Members should seek advice from their fund or a trusted adviser before making changes to their investment strategy”, Rappel said.

For more insights on various super topics and making informed decisions, explore our super guides hub.