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.
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