Industry under the microscope: ASIC’s renewed focus on retirement communications
Australia’s corporate watchdog is intensifying its oversight of how superannuation funds communicate with members, particularly during retirement and in death benefit scenarios. The push follows a string of concerns raised about customer service and the quality of information provided to retirees and their families.
Case in point: a high-profile delay that highlights broader issues
Tracy, who asked that her full name be withheld, has waited nearly six months for a withdrawal request linked to her late mother’s superannuation to be processed by one of the country’s largest funds, HESTA. Acting on behalf of her mother Vicky, Tracy submitted the application in April. An outage foreshadowed the process, but the delays extended well beyond the outage period, with repeated paperwork requests, miscommunications between teams, and unreturned calls that worsened the stress for the family.
HESTA acknowledged the difficulty of the experience and said the matter had been resolved. Still, Tracy reported that no funds had arrived and no final statement had been provided as of the latest update. This anecdote mirrors a broader concern: even when funds acknowledge issues, the practical delivery of promised benefits and clear, timely updates often lags behind expectations.
ASIC’s review: a broad look at how funds assist retirees
The Australian Securities & Investments Commission (ASIC) has launched a detailed review of 12 super trustees, including HESTA, to assess how well they support members as they transition into retirement. The review considers more than 9.3 million member accounts and $1.14 trillion in assets, with an emphasis on how funds help members maximise, manage, and access retirement income.
The trustees included in the assessment account for about 45% of APRA-regulated funds by member assets. The scope spans July 1, 2022, to December 11, 2024, and reflects concerns over communications that may not meet the needs of retirees, as well as the quality of customer service once benefits or claims are underway.
What the findings suggest for retirees
ASIC warns that many Australians may lack critical information needed to make informed retirement decisions. Its MoneySmart research indicates that only about one-third of those nearing retirement feel financially secure upon exit from work. The regulator emphasizes that as more Australians enter retirement with larger balances, there is a clear expectation for more tailored, high-touch support rather than generic, one-size-fits-all communications.
As part of its messaging, ASIC highlights the potential for improved member retention and growth for funds that prioritise personalized communications, robust governance, and data-driven benchmarking. The regulator argues that well-designed retirement communications can align fund strategies with member needs, ultimately supporting better retirement outcomes.
Addressing the needs of diverse and vulnerable groups
A key finding of the watchdog is that some trustees have yet to demonstrate sufficient consideration for First Nations, vulnerable, and culturally and linguistically diverse members. ASIC stresses that understanding and identifying the challenges faced by these groups is essential for effective retirement planning communications. In its view, robust governance and targeted engagement are critical to delivering equitable outcomes across the retirement spectrum.
What happens next?
ASIC says it will continue monitoring industry progress and expects funds to adapt by enhancing data analytics, improving communications, and delivering more responsive customer service. For individuals like Tracy, the ongoing improvements cannot come soon enough, as delays and miscommunications can have real-life consequences, particularly for those managing a loved one’s affairs during illness or after death.
HESTA has stated that it aims to resolve claims quickly and to support beneficiaries with clarity and care. The broader message from the regulator, however, is clear: trustees must embed better communications practices and ensure that retirees receive timely, accurate information and support throughout the retirement journey.
