Key Takeaways
- • ASIC reviewed 45 pension fund trustees managing $1.6 trillion in savings for more than 12.8 million members and warned of possible legal action against funds that fail to meet their obligations on complaint handling.
- • According to AFCA, complaints about pension funds rose 42% in the 2025–26 financial year to 8,755, with complaints about denial of payments up 80%.
- • Members were more likely to obtain a resolution when complaining to the Australian Financial Complaints Authority (AFCA) than when approaching their fund directly.
- • Nearly a quarter of reviewed trustees did not regularly analyze complaint data to identify systemic problems, and 14 of 45 identified none over two years.
- • ASIC Commissioner Simone Constant described the low rates of identifying systemic problems as a warning sign rather than evidence of better performance.
Summary
The Australian Securities and Investments Commission (ASIC) has found that Australian pension funds are handling member complaints improperly and has warned of possible legal action against trustees that fail to meet their legal obligations, according to a report by ABC News. The review covered 45 pension fund trustees managing $1.6 trillion in savings for more than 12.8 million members. ASIC found that members were more likely to obtain a resolution when they approached the Australian Financial Complaints Authority (AFCA) rather than their fund directly.
ASIC Commissioner Simone Constant said pension fund trustees manage a total of $3.4 trillion in Australians' retirement savings and that undetected or unresolved problems can develop into large-scale failures, harm members and undermine trust in the retirement system. Nearly a quarter of the trustees reviewed did not conduct regular analysis of complaint data to identify systemic problems. Over two years, 24 of the 45 trustees identified fewer than five such problems, while 14 identified none. Constant characterized these low rates as a warning sign rather than evidence of better performance.
According to AFCA, complaints about pension funds increased 42% in the 2025–26 financial year to 8,755, and complaints concerning denial of payments rose 80%. ASIC said AFCA received more than 19,400 complaints concerning the 45 funds from July 1, 2023, to June 30, 2026. A two-year comparison showed AFCA identified systemic problems almost twice as often as fund trustees did in complaints they received.
The regulator also found that some trustees attributed more than 60% of recorded complaint reasons to members' own actions. In one case, a tax system problem had drawn complaints for years before the trustee checked whether it affected other members; preliminary estimates suggest about 1,200 people could be affected. In another case, more than 250,000 members were unable to access documents online at various times. Financial Services Council chief executive Blake Briggs said funds had strengthened complaint-handling mechanisms and systemic problem identification in recent years.
ASIC Commissioner Simone Constant said pension fund trustees manage a total of $3.4 trillion in Australians' retirement savings and that undetected or unresolved problems can develop into large-scale failures, harm members and undermine trust in the retirement system. Nearly a quarter of the trustees reviewed did not conduct regular analysis of complaint data to identify systemic problems. Over two years, 24 of the 45 trustees identified fewer than five such problems, while 14 identified none. Constant characterized these low rates as a warning sign rather than evidence of better performance.
According to AFCA, complaints about pension funds increased 42% in the 2025–26 financial year to 8,755, and complaints concerning denial of payments rose 80%. ASIC said AFCA received more than 19,400 complaints concerning the 45 funds from July 1, 2023, to June 30, 2026. A two-year comparison showed AFCA identified systemic problems almost twice as often as fund trustees did in complaints they received.
The regulator also found that some trustees attributed more than 60% of recorded complaint reasons to members' own actions. In one case, a tax system problem had drawn complaints for years before the trustee checked whether it affected other members; preliminary estimates suggest about 1,200 people could be affected. In another case, more than 250,000 members were unable to access documents online at various times. Financial Services Council chief executive Blake Briggs said funds had strengthened complaint-handling mechanisms and systemic problem identification in recent years.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.