Super funds failing members before death benefit claims even begin
Poor death benefit communication fuels calls for mandatory service standards
New research released by Super Consumers Australia shows at least 15.5 million Australians do not have a binding death benefit nomination with their super fund. This comes on the back of ASIC findings that having a binding death benefit in place can significantly speed up a death benefit claim.
The Your Say on Super national survey found 67% of people had not been contacted by their fund in the past 12 months about making a binding death benefit nomination, missing a critical opportunity to help members decide who receives their super after they die.
“Again, funds are dropping the ball on customer service and it is leading to real consumer harm. Reducing avoidable delays and uncertainty for grieving families is a no brainer,” Super Consumers Australia CEO Xavier O’Halloran said. “So why aren’t funds doing more to help members decide where their super goes after they die?”
The findings come shortly after Super Consumers Australia released a mystery shopping study of 20 major super fund call centres, which found widespread service failures and an industry average customer experience score of just 49.9 out of 100.
They also follow a recent ASIC report showing little industry-wide progress on speeding up death benefit claims, with only a 3% improvement in the number completed in under six months.
Calls for mandatory customer service standards
Super Consumers Australia is calling on the Government to introduce mandatory customer service standards requiring funds to communicate clearly with members and process death benefits within clear timeframes.
“Too many Australians only learn about the importance of a binding death benefit nomination after someone they love has died,” Mr O’Halloran said.
“An effective reminder from a super fund could help people make an informed decision, reduce delays and make an incredibly difficult time a little easier for grieving families. We know that some funds have had a lot of success with nomination campaigns. It’s past time for the Government to make this mandatory for all funds.”
Consumers who are unsure whether they have a binding death benefit nomination should urgently contact their super fund and check.