In this guide
Super switching scams on the rise
The Australian Securities and Investments Commission (ASIC) is urging Australians to be on the lookout for scam super switching schemes as a new financial year begins.
ASIC said people should be alert for high-pressure sales tactics, click bait advertising and promises of unrealistic returns.
“When it comes to sales calls about super switching, there are some big red flags people should be alert to – being asked to make a quick decision is one of the most obvious. Remember, a good deal won’t vanish overnight,” ASIC deputy chair Sarah Court said.
Court also said that cold calls about superannuation switching often don’t look like other kinds of scams.
“The caller will seemingly have your best interests at heart, and they say they want to help you find a better super product or locate lost super for free. They may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy,” she said.
Free eBook
Retirement planning for beginners
Our easy-to-follow guide walks you through the fundamentals, giving you the confidence to start your own retirement plans.
"*" indicates required fields
“If you are unsure or are feeling pressured, just hang up.”
There can be some benefits to super switching, but only after careful consideration of the potential risk.
ASIC strongly encourages consumers to get advice from someone independent of a sales call and visit ASIC’s Moneysmart Protect your super from pushy sales calls.
Retirement standard rises as renter budgets added
As the cost of living for retirees continues to rise, new figures from the Association of Superannuation Funds of Australia (ASFA) show the additional financial burden faced by retirees who rent.
ASFA’s comfortable retirement standard for the March quarter rose by 1.6% over the year to March, compared to a 2.4% increase in the overall CPI. Costs for a modest retirement rose 1.7% over the past year.
The increase means that most couples now need $73,875 annually for a comfortable retirement and most singles need $52,383 annually for a comfortable retirement.
For the first time, ASFA also included budgets for non-homeowners who rent. ASFA said they added the budgets for retirees living a modest retirement given an increasing number of Australians are likely to be renting in retirement.
ASFA found a single renter aged around 65 would need $46,663 annually, with a couple needing $64,259, to retire at a modest level. This compares to $33,386 per year for single homeowners and $48,184 for homeowning couples.
The retirement lump sums needed for renters are estimated to be $340,000 for a single person and $385,000 for a couple. This compares with a lump sum of just $100,000 for homeowning singles and couples.
“These new figures demonstrate how important it is that we build more homes in this country so Australians can buy a house or an apartment,” said ASFA chief executive officer Mary Delahunty said.
“They also illustrate how super can be the difference between hardship and stability later in life, especially for renters, which is why we need to keep it safe for retirement,” she added.
Super satisfaction up
Australian’s satisfaction with their super fund’s financial performance rose slightly over the past year to May according to Roy Morgan’s latest Superannuation Satisfaction Report, while people with SMSFs remain the most satisfied.
Super knowledge is a super power
"*" indicates required fields
Overall super fund satisfaction with financial performance rose 3.1% to 69.9% in May 2025. Customer satisfaction with SMSFs rose 0.8% to 77.7% and public sector fund satisfaction was up 0.8% points to 75%, its highest level for two years since June 2022.
Fund satisfaction with the financial performance of industry funds rose 2% to 69.5%, as satisfaction with retail funds rose 6.4% to 69.3%.
“The improvement in customer satisfaction over the last year has been driven by the increases for retail funds, up 6.4% points to 69.3% – a new record high customer satisfaction for this category, and industry super funds, up 2% points to 69.5%,” Roy Morgan chief executive officer Michele Levine said.
“One factor likely to be driving the rapidly increasing satisfaction for retail funds over the last year compared to industry super funds is the higher investment exposure that retail funds tend to have to equities. The strong share-market returns over the last year will be having a bigger impact on the bottom line for retail funds than industry funds,” she added.
New super standard on insurance
In the wake of criticism of super funds’ insurance claims handling, ASFA has also released a new service standard to lift member outcomes with regard to insurance – Claims Handling in Superannuation: Insurance and Health Related Claims.
“Superannuation fund members rightly expect that their insurance cover will be there for them when they need it, and this Service Standard will ensure that insurance claims are processed in a timely manner and members are provided with helpful and timely service throughout the claims process,” ASFA chief executive officer Mary Delahunty said.
The standard was developed in consultation with the entire industry, including industry associations Super Members Council, Council of Australian Life Insurers and the Financial Services Council.
It sets out commitments by super funds to deliver a considerate and consistent claims experience for their members and makes clear what members can expect from the industry.
“We know this work is ongoing, and ASFA remains committed to leading the sector’s efforts to continually improve claims outcomes for members,” Delahunty said.
“This is an example of how productive collaboration across the sector leads to good outcomes on behalf all 18 million Australians with superannuation.”
Seniors support super system
A recent survey of older Australians by the Super Members Council (SMC) and National Seniors Australia (NSA) found that most believe the rules governing superannuation make the system strong (77%), but not as many (60%) believe it promotes equity.
Just over three quarters (79%) of the surveyed 3000 Australians aged 50-plus said super was ‘very important’ and a further 15% said it was ‘somewhat important’ to their retirement planning.
“Older people value superannuation and strongly support its underlying principles of universality, compulsion, preservation and concessional taxation. While the fundamentals are strong and should be maintained, there is support for sensible changes to make super even better among retirees and those preparing for retirement,” NSA chief executive officer Chris Grice said.
Older Australians are not supportive of early access to super, with 88% nominating they had at least one concern and only 17% supporting early access for a house deposit.
“Super is Australians’ precious income to live on in retirement, not a band-aid for cost-of-living pressures or enabling early withdrawals that would just whack up house prices. We urge policymakers to listen to older Australians and keep super safe for future generations,” SMC chief executive officer Misha Schubert said.
Leave a Reply
You must be logged in to post a comment.