Trusting trustees with our $4 trillion in super...
Australia’s superannuation system is a remarkable national achievement. What began as a fringe employment benefit has evolved into one of the most significant sources of wealth accumulation for Australians—second only to the family home. It has lifted the living standards of millions in retirement and established Australia as a major player in global capital markets.
Despite our relatively small population, Australia is now home to the fourth largest retirement savings pool in the world, with nearly $4.2 trillion in funds under management, including $2.9 trillion in APRA-regulated funds. By the end of the decade, we are projected to overtake the UK and Canada to become the second largest retirement savings system globally.
Put simply, our super is growing faster than our economy. Superannuation assets now exceed 160% of Australia’s GDP and have outpaced the market capitalisation of the ASX. It's a tremendous economic engine, supporting long-term investment, funding infrastructure, and underpinning financial resilience for millions of Australians.
While the system’s financial success is evident, there is a growing recognition that size alone doesn’t guarantee quality—especially when it comes to the lived experiences of members and their families during vulnerable times.
One area where the system is clearly falling short is in the handling of death benefit claims.
ASIC has heard from many Australians about the distressing experiences they’ve faced when trying to access superannuation funds after the death of a loved one. These are not just administrative hurdles—they are deeply personal moments made harder by unnecessary delays and poor communication.
Consider Margaret (not her real name), whose husband passed away after a long illness. He had made a valid binding death nomination to his wife. Yet it took nearly a full year for Margaret to receive the funds—over $600,000—because of repeated document requests, unclear processes, and a lack of timely updates from the fund. All this while she was grieving the loss of her partner of two decades.
Margaret’s story is not unique. ASIC’s work in this space has uncovered other instances where widows, children, and parents faced significant hurdles in claiming funds that were rightfully theirs. People have faced requests for documents that don’t exist, long periods of silence, and situations where a complaint was the only way to progress a claim.
Between 2021 and 2023, complaints to the Australian Financial Complaints Authority (AFCA) about death benefit delays tripled as a proportion of all superannuation-related complaints. ASIC responded by launching a multi-year project to drive better member services across the super sector—starting with a deep dive into death benefit claims.
This work led to ASIC publishing a 34-point roadmap to help super trustees improve their claim handling, complaints processes, and internal data practices. Many trustees have already begun implementing changes in response to ASIC’s findings.
Where systemic issues were identified, ASIC didn’t hesitate to take action. In fact, legal proceedings have commenced against two of Australia’s largest super funds, AustralianSuper and Cbus, for significant delays in processing death benefit claims. While those matters are ongoing, they underscore the seriousness of the issue—and the need for improved trustee accountability.
One of the most concerning findings from ASIC’s review was that 78% of delays were caused by factors within the trustee’s control. These included:
<> Staff errors
<> Inefficient requests for information
<> Periods of inaction
<> Failure to follow up with claimants
Even more concerning was that many trustees did not track the total time it took to process a death claim. This lack of internal visibility suggests a disconnect between the boardroom and the frontline—a key theme ASIC continues to raise with trustees.
As ASIC has highlighted: oversight starts with insight. Trustees must have access to reliable data on how their systems are performing—not just at a policy level, but in the actual member experience.
Another opportunity for improvement lies in how funds deal with complaints. ASIC considers complaints to be early warning signals—not just about individual service failures, but potentially broader systemic risks. Yet, in many cases, trustees appeared surprised when ASIC read their own complaint files back to them.
Listening to customer service calls can be equally powerful. ASIC has heard heartbreaking examples—grieving partners being asked to repeat their story multiple times, people being left without updates, or others being pushed to escalate just to access their entitlements.
This is not acceptable. And it undermines the public’s trust in the superannuation system.
It’s important to note that change is possible—and it is already happening in some quarters.
Take the case of Anna, a First Nations woman trying to claim her husband’s super from multiple funds. She faced repeated barriers—being asked for a marriage certificate that didn’t exist, or bills that weren’t relevant to her remote community.
Her financial counsellor helped escalate her concerns, and her story became part of ASIC’s review. The outcome? Not only did Anna eventually receive the benefits owed to her, but her experience prompted several funds to improve how they engage with First Nations members, particularly those in rural and remote areas.
This shows that change happens story by story. And that listening—truly listening—to members can lead to better outcomes for everyone.
The introduction of the Financial Accountability Regime (FAR) for super trustees later this year is expected to increase scrutiny and transparency across the sector. Trustees will be expected to know their business thoroughly, ensure oversight of service providers, and demonstrate they are acting in the best interests of their members—not just in words, but in measurable outcomes.
ASIC will continue to work closely with trustees, industry bodies, and consumer advocates to ensure these changes take root. We’ll also continue to engage with Australians who are navigating the super system—especially in their most vulnerable moments.
Australia’s superannuation system is a global success story—but it must also be a personal success story for each individual who contributes to it.
At its heart, super is about trust. Trust that your savings will be there when you retire. Trust that your fund will look after the people you care about if you're no longer around. And trust that the system will work for you, not against you, when you need it most.
As financial professionals, we have an important role to play in supporting clients through these processes—by providing guidance, by listening to their concerns, and by helping them navigate a system that is still evolving.
If you or someone you know is facing difficulties accessing superannuation death benefits—or has concerns about their fund’s handling of a claim—please reach out. We’re here to help.
Courtesy of ASIC
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