Cost-of-living pressures, increasing scrutiny on fees and performance and growing competition in the superannuation sector are shaping member expectations. Subsequently, delivering on the basics is no longer enough to retain members. Without more proactive engagement and tailored guidance, funds are leaving themselves exposed to increasing switching risk.
Insights from CSBA’s FEAL Superannuation Experience & Engagement Benchmark program reveal how these pressures impact member behaviour. More than one-in-five members indicate they are likely to switch funds in the next year, demonstrating that disengagement is translating into real retention risk. As super fund propositions become harder to differentiate, the experience members have increasingly shapes their decisions and their loyalty.
High disengagement across member cohorts
Historically, engagement has been used as a proxy for satisfaction. But the research shows that activity does not always reflect sentiment. Many members who appear active or “engaged” still express uncertainty, frustration, or a lack of direction, making them more likely to consider alternatives. Increased digital interaction has made it easier for members to transact, but not necessarily enough to retain them long term.
Disengagement with superannuation is particularly pronounced among younger members under 55, who face increasing day-to-day financial pressures and feel less confident about their long-term retirement outlook. While this is not a new trend, many remain unsure about key decisions and are more likely to act on switching intentions, particularly when they are not actively engaged or supported.
Older members, though typically more financially informed and confident, are not immune. Many indicate they would switch if they felt their fund was not responsive or providing relevant support when it matters. Across all cohorts, only around half of members report being actively engaged with their super, underlining an ongoing challenge for the sector.
Understanding the drivers of switching intention
Close to three in five members feel they can rely on their super to support a comfortable retirement, yet many feel they need more guidance and support from their super fund to plan effectively and prepare for their retirement. At the centre of this is a clear desire for greater empowerment. Members want to feel equipped, not just engaged.
As CSBA CX Director of Finance, Sam Monteath, notes: “Engagement alone isn’t a reliable indicator of retention. If members aren’t given relevant tools and support, they’re far more likely to consider alternatives that may better meet their needs”.
Cohort differences remain important:
• Younger members: low retirement confidence, high switching momentum
• Middle-aged members (35–54): frustration with a lack of tailored guidance
• Older members (55+): more informed but still sensitive to the quality of communication and life-stage relevant support
Expectations shaped by more than performance
In today’s market, members expect more than good returns. Responsive handling of enquiries, clear communication and seamless digital experiences are now baseline
expectations, not differentiators. Members are increasingly comparing their fund experiences with experiences they encounter in other sectors.
What increasingly sets funds apart is how they actively engage with members and provide clear, personalised direction that helps them navigate their next steps. This poses a real retention risk for super funds that rely on transactional interactions or passive communication, rather than going the extra mile.
Empowerment, not just engagement, drives retention
Retention is built on empowerment. Members are less likely to switch when they feel informed, supported and confident in their journey to retirement. Key areas where members want their super fund to do more to empower them include:
• Proactive, clear communication: helping members stay informed, not overwhelmed
• Pre-retirement guidance: tools, clarity and direction to reduce uncertainty
• Tailored information and advice: support that reflects individual needs and circumstances
• Easy-to-use digital tools that support confident, independent decision-making
“Member confidence is a powerful retention lever,” Monteath said. “But confidence is built through empowerment. Funds that provide clear, tailored guidance are far more likely to retain members, even in a competitive market.”
Implications for funds and trustees
Surface-level engagement metrics are no longer enough to understand member sentiment or predict behaviour. This becomes even more important as funds grow in size and scale, making personalised, consistent, high-quality member experiences harder to maintain.
To protect retention, funds must:
1. Identify at-risk members: using attitudinal, behavioural and cohort-based insights
2. Develop targeted retention strategies: timely, meaningful and personalised support
rather than generic engagement
3. Embed empowerment into the experience: providing tools, guidance and clarity that
help members plan and prepare today for their retirement.
Shifting focus toward proactive empowerment strategies will enable funds to strengthen retention and better support members’ retirement outcomes.
A call to action for the sector
High switching intentions signal a clear need for funds to rethink how they engage members. Delivering on fundamentals is no longer enough: retention will increasingly depend on how effectively funds can proactively future proof members, empowering them to make informed decisions at every stage of their retirement journey.
Integrating attitudinal and behavioural insights into decision-making, refining engagement strategies and supporting members proactively and in a meaningful way will be essential to reducing churn.
CSBA’s FEAL Superannuation Benchmark provides funds with the insights needed to pinpoint disengagement, understand switching drivers and design targeted interventions that strengthen retention. For many funds, these insights highlight gaps that aren’t visible through internal metrics alone.
For more information on the CSBA FEAL Superannuation CX Benchmarking program, email sam.monteath@csba.com.au
