Are you at risk? $1 billion in superannuation could be disappearing from your retirement fund
- Replies 1
Superannuation is the nest egg we all rely on to fund our golden years, but a new warning from Australia’s corporate watchdog has put millions of Aussies on 'red alert' for dodgy schemes that could see your hard-earned retirement savings vanish into thin air.
With more than $1 billion in super feared lost to questionable schemes, it’s never been more important to keep a close eye on your super and know how to spot the warning signs.
Why the sudden alarm?
Australians are being warned to stay sharp when it comes to dodgy superannuation schemes, amid fears that tens of thousands have already copped more than $1 billion in retirement losses.
The corporate watchdog, ASIC, says there are some ‘big red flags’ that people need to look out for.
According to ASIC deputy chair Sarah Court, the beginning of a new financial year is often when Aussies check in on their super’s performance, and it’s also when promoters try to pounce, pushing people to shift their super into a different fund.
People are being told to stay on ‘red alert’ for things like high-pressure sales tactics, clickbait ads, and too-good-to-be-true promises of massive returns—all used to lure Aussies into moving their super into risky investments.
The new face of super scams
Unlike the classic scam calls we’ve all learned to hang up on, these new approaches can seem legitimate—even helpful.
‘When it comes to sales calls about super switching, there are some big red flags people should be alert to—being asked to make a quick decision is one of the most obvious. Remember, a good deal won’t vanish overnight,’ Court said.
‘The initial salespeople can be very persuasive, often the underlying schemes are complex or not made clear to the consumer, and it may be very difficult for even experienced investors to spot problems. Once you start on the path it can be hard to get off.’
In earlier news: See a boost for your retirement savings: Twelve million seniors will qualify for this benefit soon!
She added that these calls don’t always look like a typical scam. In fact, the caller might seem like they’re genuinely trying to help by offering to track down a better super product or even locate lost super for free.
‘They may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy,’ she said.
Court urged Aussies to ask the hard questions, like what commissions the caller is pocketing, who they work for, and who’s managing the fund. ‘If you are unsure or are feeling pressured, just hang up,’ she advised.
Red flags to watch out for
ASIC has provided a handy checklist of warning signs that should set your alarm bells ringing:
People are being strongly encouraged to seek independent financial advice.
If you want to find your lost super or roll your accounts into one, you can do this safely and for free through the Australian Taxation Office (ATO) via myGov.
If you receive a suspicious call or message about your super, don’t engage. Hang up, and report it to ASIC or Scamwatch. If you’re worried you may have already shared personal information or made a switch you’re unsure about, contact your super fund and the ATO immediately for advice.
Read next: Finance experts warn Aussies about rising superannuation scams. Are you their next target?
Have you ever received a suspicious call or been pressured to switch your super? What steps do you take to keep your retirement savings safe? Share your experiences and tips in the comments below!
With more than $1 billion in super feared lost to questionable schemes, it’s never been more important to keep a close eye on your super and know how to spot the warning signs.
Why the sudden alarm?
Australians are being warned to stay sharp when it comes to dodgy superannuation schemes, amid fears that tens of thousands have already copped more than $1 billion in retirement losses.
The corporate watchdog, ASIC, says there are some ‘big red flags’ that people need to look out for.
According to ASIC deputy chair Sarah Court, the beginning of a new financial year is often when Aussies check in on their super’s performance, and it’s also when promoters try to pounce, pushing people to shift their super into a different fund.
Aussies are being warned to be on 'red alert' for dodgy superannuation schemes, with fears that more than $1 billion in retirement savings has already been lost. Image source: Swello / Unsplash.
People are being told to stay on ‘red alert’ for things like high-pressure sales tactics, clickbait ads, and too-good-to-be-true promises of massive returns—all used to lure Aussies into moving their super into risky investments.
The new face of super scams
Unlike the classic scam calls we’ve all learned to hang up on, these new approaches can seem legitimate—even helpful.
‘When it comes to sales calls about super switching, there are some big red flags people should be alert to—being asked to make a quick decision is one of the most obvious. Remember, a good deal won’t vanish overnight,’ Court said.
‘The initial salespeople can be very persuasive, often the underlying schemes are complex or not made clear to the consumer, and it may be very difficult for even experienced investors to spot problems. Once you start on the path it can be hard to get off.’
In earlier news: See a boost for your retirement savings: Twelve million seniors will qualify for this benefit soon!
She added that these calls don’t always look like a typical scam. In fact, the caller might seem like they’re genuinely trying to help by offering to track down a better super product or even locate lost super for free.
‘They may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy,’ she said.
Court urged Aussies to ask the hard questions, like what commissions the caller is pocketing, who they work for, and who’s managing the fund. ‘If you are unsure or are feeling pressured, just hang up,’ she advised.
Red flags to watch out for
ASIC has provided a handy checklist of warning signs that should set your alarm bells ringing:
- High-pressure sales tactics
- Cold calls
- ‘Free’ super health checks and prize offers (often through social media or websites)
- Promises to locate and consolidate ‘lost super’ for free
- Unlicensed individuals giving financial advice
- Mostly phone-based engagement, with little to no contact with an actual adviser
- Poor or missing product disclosure
- Unrealistic or over-the-top return promises
People are being strongly encouraged to seek independent financial advice.
If you want to find your lost super or roll your accounts into one, you can do this safely and for free through the Australian Taxation Office (ATO) via myGov.
If you receive a suspicious call or message about your super, don’t engage. Hang up, and report it to ASIC or Scamwatch. If you’re worried you may have already shared personal information or made a switch you’re unsure about, contact your super fund and the ATO immediately for advice.
Read next: Finance experts warn Aussies about rising superannuation scams. Are you their next target?
Have you ever received a suspicious call or been pressured to switch your super? What steps do you take to keep your retirement savings safe? Share your experiences and tips in the comments below!
.png){kind=icon}
