Nurse loses $460,000 after 36 years of work, raising urgent questions about superannuation safety
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After decades of hard work, many of us dream of a retirement filled with holidays, time with the grandkids, and the reassurance that our savings are secure.
That dream has crumbled into a nightmare for one Aussie mum and nurse of 36 years.
She lost her entire $460,000 nest egg when her superannuation fund collapsed—a devastating reminder that the system we rely on for security isn’t always as safe as it seems.
Kathryn Shannon’s story is heartbreaking and, unfortunately, not unique. Like many Australians, she worked hard, made sacrifices, and diligently topped up her super throughout her career.
She didn’t own her own home, so her super was her only safety net. She thought she was set for retirement after transferring her life savings into the Simple Super Fund via her self-managed super fund (SMSF).
But in June, the Australian Securities and Investments Commission (ASIC) stepped in, seeking a Federal Court order to appoint receivers to Australian Fiduciaries Limited—the parent company of Simple Super Fund.
The move left 600 Australians in limbo, with a collective $160 million invested in managed schemes run by the company since 2020.
Most of these investors, like Kathryn, used SMSFs, believing they were making prudent choices for their future.
The collapse didn’t happen overnight. Australian Fiduciaries stopped distributing units in its schemes in September 2023, and the Simple Super Fund lost its Australian business number two months earlier, ending its status as a tax office-regulated SMSF.
ASIC is now investigating the company for mismanaging conflicts of interest and misleading investors.
Kathryn, now facing an uncertain future, is left asking the same questions many of us would: 'How could this happen? Why didn’t anyone pick up on this sooner? Where was the oversight?'
She’s filed a complaint with the Australian Financial Complaints Authority, but fears that she and hundreds of others will never see their money again without government intervention.
Kathryn’s story isn’t an isolated incident. As she struggles with her loss, another 6,000 Australians are dealing with the collapse of the First Guardian Master Fund, another super-managed fund that’s left retirees in the lurch.
These high-profile failures have shaken confidence in a system that’s supposed to protect us in our golden years.
SMSFs can offer more control and flexibility, but they also come with greater responsibility and risk. Unlike industry or retail super funds, SMSFs are managed by individuals—meaning you’re responsible for compliance, investment decisions, and ongoing management. If something goes wrong, there’s often less recourse.
Many SMSF investors are drawn in by the promise of higher returns or more tailored investment options. But as Kathryn’s experience shows, these benefits can come with significant risks—especially if the fund managers aren’t playing by the rules.
Kathryn’s story has reignited calls for stronger regulation and oversight of superannuation funds, especially SMSFs and managed investment schemes.
Many believe the government needs to do more to protect everyday Australians from dodgy operators and ensure that our retirement savings are truly safe.
Have you had a close call with your super? Do you have tips for keeping your retirement savings safe? Or maybe you’ve got questions about SMSFs and want to hear from others in the community. We’d love to hear your thoughts and experiences—share your story in the comments below.
Read more: ASIC puts the $4 trillion super industry on notice after shocking payment delays
That dream has crumbled into a nightmare for one Aussie mum and nurse of 36 years.
She lost her entire $460,000 nest egg when her superannuation fund collapsed—a devastating reminder that the system we rely on for security isn’t always as safe as it seems.
Kathryn Shannon’s story is heartbreaking and, unfortunately, not unique. Like many Australians, she worked hard, made sacrifices, and diligently topped up her super throughout her career.
She didn’t own her own home, so her super was her only safety net. She thought she was set for retirement after transferring her life savings into the Simple Super Fund via her self-managed super fund (SMSF).
A Perth mum and nurse of 36 years lost $460,000 in retirement savings after the collapse of her self-managed super fund. Credit: LinkedIn
But in June, the Australian Securities and Investments Commission (ASIC) stepped in, seeking a Federal Court order to appoint receivers to Australian Fiduciaries Limited—the parent company of Simple Super Fund.
The move left 600 Australians in limbo, with a collective $160 million invested in managed schemes run by the company since 2020.
Most of these investors, like Kathryn, used SMSFs, believing they were making prudent choices for their future.
The collapse didn’t happen overnight. Australian Fiduciaries stopped distributing units in its schemes in September 2023, and the Simple Super Fund lost its Australian business number two months earlier, ending its status as a tax office-regulated SMSF.
ASIC is now investigating the company for mismanaging conflicts of interest and misleading investors.
Kathryn, now facing an uncertain future, is left asking the same questions many of us would: 'How could this happen? Why didn’t anyone pick up on this sooner? Where was the oversight?'
She’s filed a complaint with the Australian Financial Complaints Authority, but fears that she and hundreds of others will never see their money again without government intervention.
Kathryn’s story isn’t an isolated incident. As she struggles with her loss, another 6,000 Australians are dealing with the collapse of the First Guardian Master Fund, another super-managed fund that’s left retirees in the lurch.
SMSFs can offer more control and flexibility, but they also come with greater responsibility and risk. Unlike industry or retail super funds, SMSFs are managed by individuals—meaning you’re responsible for compliance, investment decisions, and ongoing management. If something goes wrong, there’s often less recourse.
Many SMSF investors are drawn in by the promise of higher returns or more tailored investment options. But as Kathryn’s experience shows, these benefits can come with significant risks—especially if the fund managers aren’t playing by the rules.
Kathryn’s story has reignited calls for stronger regulation and oversight of superannuation funds, especially SMSFs and managed investment schemes.
Many believe the government needs to do more to protect everyday Australians from dodgy operators and ensure that our retirement savings are truly safe.
Read more: ASIC puts the $4 trillion super industry on notice after shocking payment delays
