As the new financial year begins, it’s common for Australians to review the performance of their superannuation funds. Unfortunately, this period also brings a rise in unsolicited calls, social media advertisements, and offers promoting “free super health checks” or services to “find your lost super”. While these offers may appear helpful, they are often designed to pressure you into switching funds or making unsuitable investment decisions.
These approaches may not look like typical scams — callers may sound professional and genuinely interested in helping. They might even refer you to a financial adviser to increase credibility. However, many of these campaigns are backed by commission-driven incentives or hidden conflicts of interest that may not prioritise your financial wellbeing.
Red Flags to Watch Out For
If you’re contacted about your superannuation, stay alert to these common warning signs:
- Cold calls and unsolicited contact: If someone you don’t know reaches out, they may have obtained your details through questionable means.
- High-pressure tactics: Be wary of any urgency to act quickly — superannuation decisions should never be rushed.
- “Free” super health checks or lost super services: These are often marketing hooks. You can search for lost super yourself, at no cost, via the Australian Taxation Office (ATO).
- Unrealistic promises: Offers guaranteeing high returns or “superior” performance often lack credibility. If it sounds too good to be true, it likely is.
- Claims of underperformance: Salespeople may exaggerate issues with your current fund to encourage switching. Always verify such claims directly with your fund.
- Limited interaction with a licensed adviser: Genuine advice should involve direct, comprehensive discussions. Be
cautious if you are passed quickly to an adviser or receive minimal engagement. - Unlicensed promoters: Ensure that anyone providing superannuation advice is properly licensed by ASIC and registered to provide personal financial advice.
Protecting Your Superannuation: Key Tips
To safeguard your retirement savings, consider the following:
- Hang up on unsolicited calls — you are under no obligation to listen, respond, or explain.
- Never share personal or financial information unless you initiated the contact and have verified the party’s legitimacy.
- Report suspicious contact to your superannuation fund and the Australian Securities and Investments Commission (ASIC). If you suspect your details have been compromised, alert your fund immediately.
- Seek independent, licensed financial advice before making changes to your super. A qualified adviser can provide guidance based on your individual needs and circumstances.
- Use the ATO’s free service to locate any lost superannuation — there is no need to pay a third party to do this for you.
Your Superannuation Is Too Important to Risk
Superannuation is a cornerstone of your long-term financial security. Decisions about your fund should be made carefully, without pressure, and with full understanding of the implications. Always take the time to assess offers critically, ask questions, and seek professional advice if you’re unsure.
If you have any doubts or concerns, please reach out to us here at DFV and we can help!