Super funds fall short in customer service review

Australia’s superannuation funds performed poorly in a recent customer service evaluation, earning an average satisfaction rating below 50%. The assessment was conducted by consumer advocacy group Super Consumers Australia in collaboration with Customer Service Benchmarking Australia.

The investigation examined 20 major super fund call centers. No fund met the 80% benchmark considered best practice, and none exceeded 55% across metrics for ease, success, and sentiment.

Call centers struggle with empathy and consistency

Staff frequently prioritized identity verification over empathy, especially when assisting callers facing domestic violence, bereavement, or serious injury. In 70% of calls involving vulnerable customers, empathy scores dropped to five out of 10 or lower.

Almost a quarter of prospective customers were directed to seek help online. In 58% of calls where someone phoned on behalf of a customer with limited English, staff did not provide direct assistance. Performance varied widely—from 20% to 86%—even within the same fund, making service quality unpredictable.

“People don’t just need a healthy super balance for a dignified retirement,” said Super Consumers Australia chief executive Xavier O’Halloran. “They need confidence that their fund will answer calls during difficult moments and provide real help.”

AustralianSuper, the country’s largest super fund, answered only 10% of calls during the study. Team Super managed 52%, still below the 87% industry average. A spokesperson for AustralianSuper explained the survey occurred a year ago during a transition to a new call center provider.

“Our customer satisfaction scores are now at record highs, and our average wait time is under two minutes,” the spokesperson stated. “We’re pleased with how the team is supporting members.”

Regulators push for mandatory service standards

The results arrive as Treasury prepares to enforce mandatory minimum service standards for large APRA-regulated super funds, effective July 2028. The decision follows notable failures, including Cbus’s $24 million fine for delayed death benefit payments and AustralianSuper’s backlog of claims exceeding internal deadlines.

The proposed standards would require funds to process death benefits and insurance claims efficiently and compassionately. They would also mandate clearer communication and replace inconsistent practices with structured processes. Trustees would need improved documentation and audit trails.

Mary Delahunty, chief executive of the Association of Superannuation Funds of Australia, said “the sector is listen”.

Some funds could gain an edge through better service. “For businesses with infrequent customer interactions, like superannuation, each contact becomes a key opportunity to stand out,” the report observed. Currently, the industry appears to be missing those chances.

Team Super did not provide a comment when contacted.