ASIC Warns Super Funds Failing Members on Complaints

The corporate regulator says trustees are not learning enough from member complaints to fix systemic problems.

Updated on Nov. 1, 2026 in Retirement Planning

ASIC Warns Super Funds Failing Members on Complaints

Live Poll

Do you trust your superannuation fund to handle your complaints fairly?

The Australian Securities and Investments Commission has warned that superannuation funds are failing their members in managing retirement savings. ASIC reviewed 45 trustees covering $1.6 trillion in benefits and has threatened legal action against funds that do not improve complaint handling.

Why it matters

Members were more likely to get complaints resolved through the Australian Financial Complaints Authority than by raising them directly with their fund. ASIC's commissioner said trustees that fail to learn from complaints allow small problems to snowball into widespread failures.

ASIC's review covered 45 trustees managing $1.6 trillion in benefits for more than 12.8 million members, while AFCA recorded 19,400 complaints about the reviewed funds between July 2023 and June 2026. Complaints about funds refusing to pay claims rose by 80 per cent, and it is not yet clear how many members were affected by the unresolved tax-related system problem, which may involve about 1,200 people.

The players

Australian Securities and Investments Commission (ASIC)

ASIC is Australia's corporate, markets and financial services regulator, responsible for overseeing superannuation trustees and enforcing compliance.

Australian Financial Complaints Authority (AFCA)

AFCA is the independent external dispute resolution body that handles complaints between consumers and financial firms, including superannuation funds.

The details

ASIC found that close to one quarter of trustees were not analysing complaints data on a regular basis to identify systemic issues. Several trustees attributed more than 60 per cent of recorded complaint causes to members, and a tax-related system problem raised through complaints went uninvestigated for years.

March last year: ASIC called on funds to overhaul death benefit claims handling.
October last year: ASIC criticised super funds over communication with retirees.
2025-26: AFCA received 8,755 superannuation complaints, up 42 per cent.
Almost two years ago: The government announced its intention to introduce mandatory super service standards.

Market Dynamics

The government announced almost two years ago its intention to introduce mandatory service standards across the super industry, and ASIC's latest review shows why such rules are being pursued. With super funds managing $3.4 trillion in retirement savings, weak complaint handling affects a large share of Australia's retirement wealth, making regulatory pressure on trustees a growing priority.

Super fund members should check whether their fund has responded to complaints and how it handles claims, particularly death benefits and retirement communications. If a complaint is not resolved directly, members can escalate it to AFCA, which resolved complaints more reliably than many funds in the review.

The takeaway

Super members are better served by raising complaints early and tracking outcomes, since regulators are signalling that fund-level fixes are overdue. Monitoring your fund's communications and claims handling can help you spot problems before they grow.