Super Industry Apologises for Failures Impacting Grieving Aussies

The superannuation industry has issued a public apology for systemic failures that added unnecessary stress to Australians already grieving the loss of a loved one.

The Australian Securities and Investments Commission (ASIC) released a major report today about how death benefit claims were handled. It investigated 10 key superannuation trustees, including big names like HESTA, Hostplus, Rest, and UniSuper, covering the period from 2022 to 2024. Together, these trustees manage around 38% of all superannuation member benefits in Australia, which is worth $4.1 trillion.

The findings? None of these trustees tracked or reported how long it took to handle death claims or how efficiently they were processing them. Even worse, 78% of the claims reviewed were delayed because of issues the trustees could have controlled. First Nations members experienced even greater delays.

A shocking 27% of claims were met with poor customer service—including phone calls not being returned, queries being dismissed, and claimants being asked for unreasonable information.

ASIC Commissioner Simone Constant said many of the complaints were distressing, highlighting the grief, frustration, and suffering experienced by claimants. One example mentioned in the report was a woman who lost her husband and had to wait more than 500 days for a $100,000 death benefit. She still hasn’t received it and was left struggling with financial hardship and an unhelpful claims process.

In another case, a wife lost her husband after 20 years of marriage, only to receive a $600,000 death benefit three weeks later than she should have. Her experience with customer service was equally frustrating, taking months of follow-ups just to get a response.

ASIC is now calling on the superannuation sector to immediately address these issues by adopting 34 recommendations to improve the process, including clearer procedures, better staff training, and removing barriers for First Nations members.

ASIC chair Joe Longo stressed that this kind of disconnect is unacceptable, especially in the superannuation sector, which affects everyone in Australia, from families to corporate boardrooms.

The Association of Superannuation Funds of Australia (ASFA) has welcomed the report and apologized for the mistakes. Mary Delahunty, the ASFA CEO, said, “We know we have let down some of our members and their families at a time when they needed us, and we are sorry.” The sector is now committed to making things right.