The report, published by customer experience researchers CSBA, found employers blamed the lack of communication about the reforms and what would be necessary to remain compliant.
The reforms came into effect on 1 July this year. They are designed to improve efficiency, transparency and accountability in superannuation and include a rule that super funds will follow members when they change jobs, to avoid people paying fees for multiple, unnecessary accounts.
“Our findings reinforce the point that employers don’t know what they don’t know,” CSBA CX director of finance Sam Monteath said.
When it came to employers who were aware of what the YFYS reforms meant to them, CSBA found that super funds were a common source of information. More than 65% consulted their super fund for information about the new legislation.
How employees view superannuation
The CSBA report highlighted a number of divergences when it came to younger and older super members, including how each viewed the reforms and superannuation more generally.
52% of older Australians said that the so-called “stapling” reforms would not affect their chances of staying with their current super fund, versus 37% of younger Australians. Younger members also recorded the lowest level of enthusiasm for their super fund. 31% disagreed with the idea that their fund was empowering them for retirement.
In terms of what prompted members to contact their fund over the last 12 months, CSBA found that mundane and low-value enquiries like updating personal details were the most common. However, the report found that as members grew closer to retirement, interest in high-value enquiries like financial advice began to rise.
Older members also tended to feel more valued by their fund than younger ones.
Overall, CSBA found that trust was the biggest driver of fund satisfaction and that a loss of trust is one of the biggest threats to fund providers when it comes to churn.