Retirement savers exposed as lack of independent guidance fuels super switching scams

Super Consumers urges Government to expand Moneysmart after people targeted by predatory super switching schemes

Super Consumers Australia has urged the Federal Government to urgently fund a free, independent retirement guidance and comparison service through ASIC’s 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 says 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 involving lead generators and financial advisers have seen approximately 11,000 people invest around $1.1 billion of their retirement savings into these 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 Xavier O’Halloran, CEO of Super Consumers Australia.

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 $200,000 less over their retirement. If just 5 per cent of retirees remain stuck in these products over the next decade, it could translate into $20 billion in lost retirement income with increasing reliance on the Age Pension and lowering living standards.

The organisation says the Government already has a clear, proven solution: expand ASIC’s Moneysmart website into a free, independent, one-stop-shop for retirement guidance and product comparison, modelled on services in the United Kingdom and New Zealand.

This call builds on Super Consumers Australia’s recent launch of Take Your Super Back, a dedicated website funded by ASIC to support people affected by the Shield and First Guardian collapses.

“Take Your Super Back exists because people were pushed into harm in the first place,” Mr O’Halloran said.

“It shows what’s possible when consumers are given clear, independent information. But it shouldn’t be our first line of defence, it is better to provide people with information before they lose their money.”

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.
  

“After 30 years of compulsory super, it’s clear super funds, which are inherently conflicted, cannot be relied on to guide people to better options,” Mr O’Halloran said.

“The Government cannot continue to run a highly complex retirement system without giving people free, independent tools to navigate it safely. The cost of inaction is being paid by retirees, right now.”

Read the full submission here.