Navigating Super Fund Challenges: The Importance of Professional Financial Advice
Recent ASIC Report Highlights Challenges in Super Fund Processes
A recent report by the Australian Securities and Investment Commission (ASIC) has shed light on an area where even well-resourced superannuation funds sometimes struggle – the timely processing of death benefit claims. As outlined in the Australian Financial Review (“How super funds treat your money when you die is shameful” 29/03/2025), these findings underscore why professional financial advice can be so valuable in helping people navigate financial systems.
Beyond Investment Returns: The Service Challenge
Australia’s superannuation sector is rightly described as a “national treasure” in the AFR article. These institutions can do well at their core functions – generating reasonable investment returns on passively accumulating super for members. However, ASIC’s investigation into death benefit claims revealed some challenges:
- The reviewed funds showed room for improvement in their death benefit claims processes
- Three-quarters of claims experienced delays that could have been avoided
- Processing times were significantly longer than those achieved by life insurers
- Staff training and record-keeping systems weren’t always optimal
- Some families experienced multiple requests for the same information
These findings highlight how even well-intentioned institutions can struggle with complex administrative processes that fall outside their primary investment focus.
Why This Matters to You
Financial institutions provide essential products – from superannuation and insurance to banking and investments. They’re a crucial part of Australia’s financial ecosystem that we as your advisers need to implement strategic advice. However, these large organisations manage millions of customers and billions in assets, making it challenging to provide personalised service in every situation.
The Value of Having an Adviser in Your Corner
This is where our client representation provides significant value. We engage with financial institutions as your representative, leveraging our industry knowledge to ensure you receive the best possible outcomes. When you have our team work for you, you benefit from:
- Front of the queue – With us being a licensed advisory business, financial institutions typically address our queries on behalf of clients in a more expedited way through their adviser support services.
- Expert guidance through complex processes – Whether it’s insurance claims, super death benefits, or other administrative procedures, we get the paperwork correct, the first time.
- Access to competitive terms – Our knowledge of market conditions helps us work with institutions to secure favourable Term Deposit rates, competitive home loans, and appropriate investment options.
- Clear communication of complex information – We help translate technical information about your investments and products into clear, actionable insights.
- Efficient resolution pathways – Our understanding of institutional processes helps navigate administrative requirements effectively, such as insurance claims.
A Growing Issue
The ASIC report highlighted that as Baby Boomers approach retirement and beyond, the volume of these administrative processes will only increase. The financial system will face growing demands, making professional guidance increasingly valuable.
For families dealing with significant life events, having an adviser who can work effectively with institutions provides peace of mind and practical support.
Our Commitment to You
We recognise that Australia’s financial institutions provide essential products and services that form the backbone of sound financial strategies. Our role is to represent your best interests when engaging with these institutions, ensuring you receive the service and outcomes you deserve.
By standing firmly in your corner while maintaining professional relationships with financial institutions, we help ensure you receive the full value of their products and services you. Our loyalty lies exclusively with you, even as we acknowledge the important role these organisations play in our financial system.