Super Funds Face Scrutiny After Mystery Shopping Reveals Poor Service

‘OK, can you spell your surname’: How a super fund responded to a call for compassion

Australians are facing significant hurdles when contacting their superannuation funds, with new research revealing that telephone help lines are frequently failing to provide adequate support to members, particularly those in vulnerable circumstances. An independent study has found that major funds are routinely directing callers to websites rather than providing direct human assistance, fueling calls for the implementation of mandatory customer service standards across the industry.

Study Exposes Systemic Service Failures

The research, commissioned by Super Consumers Australia and conducted by Customer Service Benchmarking Australia, involved 50 mystery shopping calls to each of 20 superannuation funds. The results indicated a widespread lack of responsiveness and empathy. On average, the customer experience score for funds was just 49.9 per cent, with no individual fund managing to score above 55 per cent.

The scoring process evaluated the ease of navigating calls, the emotional impact of the interaction, and whether the caller’s needs were met. The findings highlighted that 23 per cent of potential new customers were told to use a website as their only method of obtaining information, rather than receiving help from a representative. Furthermore, for callers contacting funds on behalf of individuals with limited English proficiency, 58 per cent of funds shifted the responsibility back to the caller, with only one of the 20 tested funds offering an interpreter.

Lack of Empathy in Crisis Situations

The report identified a concerning lack of empathy for members dealing with sensitive life events, such as financial hardship, family violence, or the death of a loved one. Approximately 70 per cent of calls involving these vulnerable situations were rated five out of 10 or lower for empathy. One participant in the study recounted a distressing experience when attempting to access funds for an urgent family matter: “After saying my mother is dying and I need money to go and see her in Europe, the response was ‘OK, can you spell your surname.’”

Super Consumers Australia noted that poor service has tangible negative consequences, including delays in processing death and disability benefit payments and increased distress for members already navigating difficult personal circumstances.

Performance Under Scrutiny

The study highlighted specific difficulties with response times at major funds. AustralianSuper and Team Super were excluded from the overall average because their call centres frequently failed to answer within 15 minutes. Data showed that AustralianSuper connected only five out of 50 calls within that timeframe, while Team Super connected 26 of 50.

An AustralianSuper spokesperson explained that the study, conducted between August and October last year, coincided with a transition to a new call centre provider. The fund stated that it has since improved its average answer speed to less than two minutes and that current customer satisfaction scores are at record highs. Team Super declined to comment on the findings.

Calls for Regulatory Change

Xavier O’Halloran, chief executive of Super Consumers Australia, emphasized that while superannuation contributions are mandatory, service levels currently are not. “People should not have to beg their super fund for basic help,” O’Halloran said, adding that members who are not being heard should consider filing complaints or moving their money to a different fund.

The Super Members Council, which represents profit-to-member funds, stated that it supports the push for mandatory service standards. However, the council questioned the methodology of the research, arguing that it was limited because it only tested telephone interactions and did not progress beyond identity verification, thus failing to capture the full scope of how funds assist their members.

The findings have renewed pressure on the federal government to act on promised mandatory service standards, a policy proposal that has seen little progress in the 18 months since it was first introduced.

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