Rising scrutiny on retirement communications
The financial watchdog ASIC has sharpened its focus on how Australia’s superannuation funds communicate with retirees and manage death benefit claims. The move follows growing complaints about delays, poor customer service, and opaque processes that leave beneficiaries in limbo during already stressful periods.
In a landmark review, ASIC assessed 12 major trustees — representing about 45 per cent of APRA-regulated funds by member assets and more than 9.3 million member accounts with roughly $1.14 trillion in assets. The period under review runs from July 1, 2022, to December 11, 2024, and includes funds such as HESTA, Australian Meat Industry Superannuation, Aware Super, UniSuper, REST, and Vanguard, among others.
Concrete cases behind the headlines
Tracy, a Perth resident who asked to remain anonymous, encapsulates the frustration many retirees encounter. After requesting access to her late mother’s superannuation, Tracy says she endured a seven-week outage, followed by months of back-and-forth between departments, lost paperwork, and promises of calls that never arrived. A representative even hung up on her during a tense period when her mother’s funds were overdue for distribution.
When the outage ended, the claim shifted from a withdrawal to a death benefit, with the funds to be divided among Tracy and her siblings. Yet, despite assurances from HESTA’s insurance team that they had everything needed, no payment had been received months later. The episode underscores a central concern: even as the sector markets itself as a retirement partner, the day-to-day experience for beneficiaries can fall short of expectations.
What the review aims to uncover
ASIC’s review focuses on how trustees help members maximize, manage, and access retirement income. The watchdog is looking at whether communications are tailored to different life stages and diverse groups, and whether the sector is moving away from generic, one-size-fits-all messages toward more personalized, high-touch support.
ASIC Commissioner Simone Altman (note: adjust if name is quoted differently in materials) noted that more than 1.5 million Australians are currently in retirement, with assets totaling around $575 billion. The projected near-term wave of retirement entrants — over 2.5 million Australians in the coming decade — puts a premium on funds delivering clearer guidance and timely assistance. The goal is to enable better decision-making and improve retirement outcomes.
Key expectations for trustees
ASIC suggests that robust governance, data analytics, and benchmarking can translate into better communication and stronger member engagement. Trustees that implement tailored retirement planning resources, improve claims processing, and maintain transparent timelines are likelier to retain members and grow sustainably in a competitive market.
What this means in practice is a push for:
- Personalized communications that reflect a member’s retirement phase and circumstances, including the needs of vulnerable groups and diverse communities.
- Streamlined, transparent claims processes with predictable timeframes and regular updates.
- Proactive outreach to inform members about options for retirement income, including flexibility in accessing funds where appropriate.
Industry response and next steps
Funds, including HESTA, have publicly acknowledged the importance of a positive claims experience for beneficiaries. While the sector argues that some delays are caused by complex cases and regulatory requirements, ASIC’s ongoing monitoring signals that improvements are non-negotiable. The watchdog will continue to track progress and report on industry developments as part of an industry-wide effort to ensure retirees receive clear guidance and timely support.
For Australians preparing for or already in retirement, the takeaway is clear: seek proactive updates, ask for defined timelines, and request written explanations when decisions affect your benefits. In a market where trust hinges on transparent communication, stronger customer service can translate into tangible gains for both retirees and fund providers.
