Retirement
Super fund slammed at Shonkys 2019
A superannuation provider has been shamed for ruining the retirement of Australians today – crowned with a Shonky in an annual naming and shaming of Australia’s worst products.
Super fund slammed at Shonkys 2019
A superannuation provider has been shamed for ruining the retirement of Australians today – crowned with a Shonky in an annual naming and shaming of Australia’s worst products.
As part of CHOICE’s annual Shonky Awards, now in its 14th year, AMP Superannuation received the gong for “ruined retirements”.
AMP Superannuation joins Kogan, Medibank’s basic cover health insurance, an IKEA fridge, Freedom Foods cereal and the entire pet insurance industry in receiving a dishonour.
“This year highlights businesses and industries who have ripped off, misled and treated Australians like cash cows to be exploited. Following the banking royal commission, it’s no surprise that financial services businesses are such a feature of this year’s Shonkys,” CHOICE CEO Alan Kirkland said.
“We’re still waiting for the finance sector to put its customers first.
“After a decade of shame for the finance sector, issues continue to emerge.
“For this year’s Shonkys, we had no choice but to keep the spotlight on financial firms that treat their customers poorly.”
With over 1 million zombie super accounts eating away at Australians’ retirements, Mr Kirkland noted that “AMP received some of the strongest criticism from the banking royal commission – and it was deserved”.
“If your superannuation is with AMP, chances are you’ve had your retirement leeched off to fund its executives’ lifestyles,” he continued.
“AMP holds the largest number of zombie accounts of any other super fund – accounts that sit there being wasted away by fees and insurance.”
“Zombie accounts” are inactive superannuation accounts, and generally come into being when someone leaves a job or taken a break from the workforce.
These accounts end up being eaten away at by fees and insurance.
“For AMP, it’s money for doing nothing,” Mr Kirkland stated.
“Managing people’s retirement funds isn’t your average business. There’s a higher moral standard to meet when it comes to people’s security and comfort in older age, and AMP has failed this standard.”
CHOICE also highlighted that AMP’s life insurance – as offered in its superannuation – has some of the longest delays in processing claims.
The comparison platform also took issue with the overall performance of many of AMP’s super funds, highlighting that all AMP-branded MySuper products have performed below average based on five-year returns.
About the author
About the author
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. Read more
Superannuation
Could the Super Home Buyer Scheme ‘torpedo’ Aussie super savings?
Industry Super Australia has argued that the scheme would force funds to hold more cash. Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. Read more
Superannuation
Could the Super Home Buyer Scheme ‘torpedo’ Aussie super savings?
Industry Super Australia has argued that the scheme would force funds to hold more cash. Read more