Industry watchdog spotlighted as retirees face delays
A corporate watchdog has sharpened its focus on how Australian super funds communicate with retirees, following complaints about slow processing, lost paperwork, and poor customer service. The issue is not isolated to a single fund; it comes amid an ongoing review targeting 12 trustees that collectively manage more than 9.3 million member accounts and $1.14 trillion in assets.
The case that underscored the problem
Tracy, who asked that her full name be withheld, waited nearly six months for a death-benefit withdrawal request submitted on behalf of her mother, a long-time member of HESTA. After the mother’s passing, Tracy’s claim was stuck in a maze of team handoffs and re-submissions. A single representative allegedly hung up during a call, and several documents were reportedly lost between departments. HESTA acknowledged the experience and said the matter was resolved, but Tracy noted she had not received funds or a final statement as of the latest update.
ASIC’s broader investigation into retirement communications
ASIC’s scrutiny extends beyond death benefits to the broader communications landscape for retirees. The regulator found that many funds still rely on one-size-fits-all messaging that targets pre-retirees, rather than offering tailored, high-touch support through retirement. With more than 1.5 million Australians already in the retirement phase and hundreds of billions in assets at stake, effective, personalized communications are a critical driver of member trust and retention.
Key findings from the regulator
- More than 9 trillion dollars in member assets are managed by the funds under review, with trustees representing about 45% of APRA-regulated funds by asset size.
- Only a minority of Australians approaching retirement feel financially confident about life after work, underscoring the need for clearer guidance and flexible access to income options.
- There is a clear gap in addressing the needs of vulnerable groups, including First Nations members and culturally diverse communities, in retirement communications.
What good looks like in retirement communications
ASIC highlighted that funds with strong governance, robust data analytics, and ongoing benchmarking tend to deliver better outcomes for members. Effective strategies include personalized retirement planning support, timely updates during complex events (like death-benefit processing), and transparent progress reporting on claims. The regulator argues that improved communications do not merely help members; they also support stronger member retention and scalable growth for funds.
Implications for members and funds
For members and their families, the focus is on getting timely access to retirement income and clear, accurate information about entitlements. For funds, the emphasis is on building trust through reliable customer service and transparent claims handling. The ongoing review, with periodic updates expected from ASIC, aims to drive reform across the sector and raise the bar for how retirement information is tailored to individual circumstances.
What to watch next
ASIC plans to monitor progress across the 12 funds and may publish follow-up findings on improvements in communications and service levels. Meanwhile, families experiencing delays or mismanagement in death-benefit claims are encouraged to document interactions and stay engaged with their fund’s complaints processes while seeking guidance from consumer groups if needed.
