Lately, one area we are increasingly concerned about is the rise in aggressive sales tactics targeting Australians’ superannuation.
ASIC has issued a warning about high-pressure strategies such as clickbait articles promising high returns, used to convince people to switch super funds, sometimes into inappropriate or risky products.
We want to ensure our clients are aware of these tactics being used and know how to protect your retirement savings.
Why you might be targeted
Those who promote these schemes often stand to benefit from you switching your Super to another fund.
They may:
- Charge advice fees to your super fund
- Recommend setting up a self-managed super fund (SMSF), which comes with setup and admin costs.
- Receive commissions for moving your money into different financial products
They often use urgency and pressure to get you to act quickly, making it seem like you’ll miss out if you don’t switch immediately.
In some cases, they may involve a licensed adviser to create a sense of legitimacy, but control of the process often remains with unqualified or sales-focused individuals.
Red flags to watch for
According to ASIC, you should be cautious if you encounter:
- Unsolicited cold calls or messages
- Offers of free super health checks, or prizes via ads or websites
- Promises to find and consolidate your ‘lost super’
- Involvement of unlicensed individuals in the advice process
- Limited access to a genuine, licensed financial adviser
- Poor or missing product disclosure
- Promises of high or guaranteed returns
These tactics are designed to pressure you into a decision. But when it comes to super, informed and considered advice is essential.
What to do if you are contacted
If someone contacts you about your super and it doesn’t feel right, we recommend:
- Hang up or ignore the message
- Block the number
- If you’ve provided personal information, contact your current super fund immediately to safeguard your account
- Seek guidance from a trusted source, such as a licensed financial adviser
How to check your super
If you’re reviewing your super, use tools backed by independent and government sources.
The ATO’s YourSuper comparison tool is a great place to start and helps to compare MySuper products.
You can also review your annual super statement or log into your fund’s portal to access performance, fees, and insurance information.
Need help with your super?
Here at Fusion Solutions, we offer an independent financial advisory service where you can be confident you’ll receive trusted, experienced professional financial and retirement advice.
Get in touch with the team if you’d like to book a discussion with our team about protecting your super and retirement planning.
A word from those we have helped
I have been worried about my retirement income for some time and decided to look for financial advisors as the institutions are not of any help. I called Fusion Finance as they were local however with much trepidation. I walked out of my first meeting with Paul Jackson, very comfortable, I was at ease explaining my goals and his down to earth approach and with the simple language he used. He was able to come up with a plan that I did not have to think a lot about. I decided to go ahead, Paul was overseas visiting family after covid, but everything was handled professionally and efficiently by the great team at Fusion Financial Solutions. I recommend giving Paul and his team consideration to take the stress out of worrying about your financial arrangements.
H McKenzie
