New research: Super death and disability payouts take far longer than people expect 

People want super death and disability payouts sooner

Newly released research from Super Consumers Australia shows super death and disability payouts take far longer than people consider reasonable, reinforcing the need for mandatory payment deadlines.

The Your Say on Super survey asked 4,815 Australians how long six common super payments should take. Available data suggests funds are generally meeting expectations for simpler payments like retirement withdrawals and early access to super. But death and total and permanent disability (TPD) payouts fall far short:

• Death benefits: People considered 2.3 months reasonable. ASIC found many claims remained unresolved after 12 months.
• TPD insurance: People considered 2.2 months reasonable. Available fund data shows payments can take more than 6 months.

“People understand that some claims take longer to process. But wait times for death benefits and total and permanent disability insurance payouts far exceed what people consider reasonable,” said Super Consumers Australia Director of Policy Jessica Spence.

“These payments help you keep a roof over your head and cover everyday costs after a death or permanent disability. Delays can turn an already devastating experience into a financial crisis.”

Calls for clear deadlines and public reporting 

Super Consumers Australia is calling for the Government to set enforceable payment deadlines and to require every fund to track and publish the total time people wait for payments. 

“Only a few funds currently publish how long payments take. Credit to them for stepping up and making themselves accountable to their customers. But we need to see all funds reporting this data and we need them reporting the same data so that people can compare and make a choice for good service,” Ms Spence said. 

“We need deadlines that count from someone’s first contact with their fund until they are paid, backed by consistent public reporting.

“Knowing when your money will arrive gives you some control. You can make plans, pay your bills and focus on yourself and your family.”

Jessica Spence is available for an interview.

Access full research findings and methodology: superconsumers.com.au/research/most-people-expect-fast-service-from-super-funds