The period covered by these ratings is from September 2022 to February 2023, which included five interest rates increases totalling +1.5 per cent lifting official interest rates to 3.35 per cent, the highest in over a decade.

The increases have been caused by the higher-than-expected inflation readings which were at a 32-year high of 7.8 per cent in the year to December 2022, the highest since March 1990.

Customer satisfaction for Public Sector Funds in February is down by 5.7 per cent points to 73.4 per cent from a year ago in January 2022.

Despite the decrease over the last year, superannuation satisfaction is still higher than the long-term average of 57.9 per cent from 2007–2023 and also higher than at any time prior to the pandemic years of 2021–22 when the measure was at record highs.

However, superannuation satisfaction is now at its lowest since December 2020 (64.8 per cent).

The high satisfaction ratings during the last two years are no surprise with the ASX200 peaking at 7,628.9 on August 13, 2021, and again, almost as high, at 7,592.8 on April 21, 2022. The index closed at 7,258.4 at the end of February 2023, down over 330 points (-4.4 per cent) since the high reached in April 2022.

Roy Morgan CEO Michele Levine said customer satisfaction with superannuation funds is down from six months ago but remains near the record highs reached during the last two years.

“The drop in customer satisfaction from a year ago has occurred as the ASX200 experienced a period of volatility since mid-2021,” she said.

“There have been declines across all categories from the record highs reached just over a year ago. Retail Funds are down 5.6 per cent points to 61.3 per cent and are the lowest rated category, while Industry Funds dropped 6.3 per cent points to 67.9 per cent – the largest drop of any of the four types of super.

“Although both have experienced a drop in satisfaction compared to early last year Self-Managed Funds on 74.7 per cent (down 5.3 per cent points) and Public Sector Funds on 73.4 per cent (down 5.7 per cent points) remain the two sectors with clearly the highest satisfaction – well above the overall average.

“Over recent years, as well as dealing with a volatile share-market, many superannuation funds have merged or announced their intention to merge. These mergers include Unisuper taking over Australian Catholic Super, HESTA merging with Mercy Super, Active Super merging with Vision Super, HOSTPLUS merging with Statewide and many other mergers.

“Roy Morgan has extensive data on the impacts of these mergers on the customer satisfaction of the super funds involved in the mergers and acquisitions. One of the key messages coming through from these mergers is the importance of communication and a smooth transition process for members throughout.

“As the industry continues to consolidate in the years ahead, we are set to see more such mergers and acquisitions as the larger players look to increase the amount of assets they have under management in an increasingly competitive industry. The premium on maintaining a high degree of customer satisfaction and providing better investment returns will only increase.”