Superannuation Complaints and Community Harm: Insights from the Latest AFCA Data
/Introduction
The Australian superannuation sector continues to navigate complex regulatory changes, evolving community expectations, and increasing member vulnerability. Central to its integrity are sound complaints-handling processes, awareness of abuse risks and a strong working relationship between industry, government and regulators.
At a recent session of the ASFA National Legislation Discussion Group, chaired by Sarah Penn (CEO, Mayflower Consulting), experts from the Australian Financial Complaints Authority (AFCA), Heather Gray and Ben Norman, presented current data and key policy developments. The session brought together over sixty professionals, reflecting strong interest in issues such as death benefit claims, elder financial abuse and family violence. This summary distils the discussion’s key insights and practical takeaways.
AFCA Complaints Data: A Snapshot
AFCA received over 100,000 complaints in the past 12 months (1 July 2024 to 30 June 2025) across all sectors. Approximately 6,000 related to superannuation, making up 6% of the total. While not the largest category, super complaints often involve complex, sensitive events such as retirement or death.
Encouragingly, superannuation complaints decreased by 16% from the prior financial year. Death benefits, disability claims, income protection and pensions remained the most cited areas. Pension-related complaints are rising slightly, which may reflect demographic trends.
Delays in claim processing remain a concern but have also shown improvement - complaints about delays fell from 24% to 17% of overall super complaints. Early resolution remains key, with around 40% of super complaints resolved before formal investigation, underscoring the value of proactive member engagement.
Clarity on AFCA’s approach to Death Benefits and Abuse
AFCA’s current guidance on death benefits highlights a two-step assessment: identifying eligible claimants and determining a fair and reasonable distribution. While relationship quality does not automatically exclude someone, evidence of abuse or violence may be relevant.
In cases involving criminal conviction or charges related to a member’s death, trustees are expected to act cautiously - deferring payment if necessary..
These cases are rare and legally complex, and trustees must navigate tensions between legal obligations, fairness and community standards.
Red Flags: Financial Elder Abuse and Family Violence
AFCA’s draft guidance on elder abuse encourages funds to monitor for unusual account activity, such as sudden digital access, unexpected withdrawals or altered nominations. These can sometimes indicate coercion, even when members pass identification checks.
Trustees and administrators are encouraged to implement protocols for escalation and to confirm transactions directly with members. Call centre training and complaint data analysis are also identified as tools to strengthen response capability.
For family violence cases, the number of superannuation complaints remains low, but the impact can be significant. Funds are urged to support confidential alerts and enhanced account protection mechanisms to reduce the risk of financial exploitation.
Challenges in Complaint Handling
While progress is evident, delays in complex cases remain a challenge. AFCA has added four sessional Ombudsmen to support timely outcomes, prioritising cases involving financial hardship.
Barriers to complaint access were also discussed, particularly for members in remote or marginalised communities, where cultural, informational or logistical factors may prevent engagement with the complaint system. This highlights the importance of sector-wide efforts to ensure equity and inclusivity.
Looking Ahead: Finalising Guidance and Embedding Best Practice
AFCA does not plan to release new superannuation approaches this year. Instead, efforts are focused on finalising current guidance, particularly around financial abuse. Stakeholder input has helped shape more practical and accessible expectations for trustees and administrators.
The industry is encouraged to use complaint data to improve systems proactively, not only to address individual complaints but to prevent harm more broadly.
Conclusion
This recent discussion affirmed that superannuation complaints are more than a matter of process, they often involve fundamental questions of fairness, vulnerability and community trust.
While improvements are evident, the sector still faces complex challenges, especially in cases involving abuse or exclusion. Continued focus on professional education, clear guidance and inclusive practice will be vital in addressing these issues.
By working together (trustees, regulators and practitioners) the superannuation sector can continue to improve outcomes and maintain public confidence in a system that plays a critical role in Australians’ financial wellbeing.