Industry funds still lag the broader superannuation sector significantly on retirement – as expressed through member satisfaction scores – according to CoreData’s new Best Possible Retirement report, produced in partnership with Conexus Financial, publisher of Investment Magazine.

The annual study, released on Monday, concluded that member service, rather than lower fees or better returns, can be “key differentiator” for retirement outcomes.

By sector, retail funds had the highest overall score on the best possible retirement index – which incorporates elements of confidence and comfort, financial discipline and retirement experience – at 56.9. Public sector funds follow at 55.6, while industry funds lagged significantly at 48.9. Some industry fund figures canvassed said the results reflect the administrative hangover of multiple mergers and integrations, which are holding some funds back in terms of their systems, products and communications.

But CoreData global chief executive Andrew Inwood said they are also another sign the system is simply geared towards accumulation.

“It’s really, really complicated; industry funds have been world-leading at setting up this system and world-leading at managing people in accumulation,” Inwood told Investment Magazine. “But they seem to have come late to the idea that there is going to be a retirement wave.