Superannuation company, Super Consumers Australia, has urged the Australian Federal Government to urgently fund a free, independent retirement guidance and comparison service through the Australian Securities and Investments Commission's (ASIC) Moneysmart website, warning that complexity and a lack of trusted information are leaving Australians vulnerable to predatory superannuation schemes.
In its submission to Treasury’s 2026–27 Pre-Budget process, Super Consumers Australia stated that while Australia’s superannuation system has been world-class at building savings, it is failing to help people turn those savings into secure retirement incomes.
Six years after the landmark Retirement Income Review found insufficient support for retirees, little has changed and the consequences are now clear.
Recent collapses of the Shield and First Guardian Master Funds show how easily people approaching retirement can be steered into inappropriate, high-risk products when trustworthy guidance is missing.
Super switching schemes
Super switching schemes involving lead generators and financial advisers have seen approximately 11,000 people invest around A$1.1bn ($780m) of retirement savings into failed funds. ASIC has described this activity as “sophisticated” and operating at “industrial scale”.
“People in their 50s who are doing the right thing by thinking seriously about retirement are being targeted through social media ads that promise ‘free comparisons’ and peace of mind,” said Super Consumers Australia CEO Xavier O’Halloran.
There are currently 67 super funds offering more than 12,000 retirement investment options, with no way for consumers to meaningfully compare performance, fees or outcomes.
“Our retirement system is extraordinarily complex, yet the government expects people to navigate it largely on their own,” Mr O’Halloran said.
“Consumers should not have to become superannuation experts or pay for comprehensive financial advice just to avoid disastrous outcomes in retirement.”
Super Consumers’ research shows that retirees invested in under-performing retirement products could earn up to A$200,000 less over their retirement. If just 5% of retirees remain stuck in these products over the next decade, it could translate into A$20bn in lost retirement income with increasing reliance on age pension and lowering living standards.
Super Consumers Australia is calling on the government to:
- Fund Moneysmart to become a free, independent retirement guidance service.
- Introduce independent comparison tools for MySuper, choice and retirement products using APRA data.
- Invest in public awareness campaigns so Australians know where to get trustworthy help.
- Better connect existing government retirement services through Moneysmart.