'Should not have to beg': The target 20 major super funds failed to meet

A new study has revealed that 20 major Australian superannuation funds consistently underperformed in customer service, with none scoring above 55 per cent in a recent evaluation. Conducted by consumer group Super Consumers Australia, the research involved 1,000 mystery shopper calls placed between August and October last year. These calls were made by individuals posing as prospective members, non-English-speaking customers' relatives, and people in financial distress. The results showed that the average customer service score across the 20 funds stood at 49.9 per cent, far below the 80 per cent threshold considered optimal for customer experience in other industries such as utilities, banking, education, and local government. The study highlighted significant inconsistencies in service quality, with some funds recording scores as low as 20 per cent and others reaching 86 per cent. This wide variation suggests that the level of customer care varied greatly depending on the specific call handler and the circumstances of each interaction. CareSuper emerged as the best performer with a score of 55 per cent, followed by Rest Super and TelstraSuper. Notably, seven out of ten callers in vulnerable or distressing situations gave ratings of five or lower out of 10 for empathy, indicating a lack of emotional support during critical times. Two funds were excluded from the final rankings due to poor call connection rates. AustralianSuper managed to connect only 10 per cent of its calls within 15 minutes, while Team Super achieved a 52 per cent success rate, both significantly below the 87 per cent average for the remaining funds. Super Consumers Australia CEO Xavier O’Halloran emphasized that the current state of customer service in the super sector is inadequate and urged for mandatory standards similar to those in other industries. He stated that individuals should not have to plead for basic assistance from their super funds and encouraged members to complain or consider switching providers if service issues persist. However, not all parties accepted the findings. AustralianSuper disputed the results, attributing them to the period of transition to a new call centre provider. A spokesperson noted that the fund’s current customer satisfaction scores are at an all-time high, and the average time to answer calls is less than two minutes. Similarly, the Super Members Council, representing the industry’s peak advocacy body, raised concerns over the methodology, pointing out that the mystery shoppers were not actual members and that calls could not proceed beyond identity verification, a measure designed to prevent fraudulent activity. The Australian Securities and Investments Commission (ASIC) has been actively reviewing the sector's progress in enhancing member interactions with super funds, especially following revelations related to death benefits. While many trustees have improved their claims handling processes, some have lagged behind in implementing fundamental changes. A spokesperson for ASIC confirmed that the agency is engaged in a long-term initiative aimed at improving customer engagement with super funds. Assistant Treasurer Daniel Mulino’s office indicated that the government is currently considering better standards for the industry, suggesting ongoing efforts to address these systemic shortcomings. As the regulatory landscape continues to evolve, the pressure on super funds to deliver consistent, empathetic, and efficient customer service is likely to intensify.