The super system is making things especially difficult for First Nations people

A 2025 report from Super Consumers Australia suggests outdated rules, discriminatory practices and poor support services are stopping many First Nations people from accessing their own super.¹

It also notes that while First Nations people are more heavily affected, many of the same problems show up for other Australians too – especially people in rural or remote areas, older Australians, people with lower digital or financial literacy, and people facing language barriers.

Key barriers identified

Key barriers identified by the report included:

Rigid ID verification processes routinely prevent people from accessing their super. Getting hold of standard ID documents can sometimes be hard. For those living in remote areas, applying for and picking up these documents can mean travelling long distances – especially when the mail isn’t reliable or quick. It’s easy for important documents to go missing. Many older First Nations people never had their birth recorded when they were born, particularly those who grew up in remote parts of Australia. And in some communities personal documents might be destroyed after someone passes away, following cultural traditions.

Customer service failures – such as unclear communication and systems that assume everyone can do things online – often leave some people feeling like it’s not worth trying. More than half of respondents said they struggled to get help from their super fund or to understand the information they were given. People over 60 and people who needed help reading English said they found this especially difficult.

Death benefit payouts can take much longer for First Nations claimants, which can add extra stress and trauma during an already difficult time. Part of the delay comes from rigid ATO rules, and claimants can also be forced into costly legal steps just to work out which fund their loved one’s super is with.

The consequences of inaction

If super funds don’t improve the way they support vulnerable members, the risks go beyond meeting legal and regulatory obligations.

When people don’t receive clear information at the right time, they might make decisions that are not right for their situation. This could include how they withdraw their super, how they invest it, or when they make important financial decisions. Uncertainty about retirement income can also create stress and reduce people’s confidence in managing their money as they get older.

These experiences can reduce trust in the super system, especially for people already facing barriers such as language, health or limited digital access.

Industry regulators are aware of the issue

The first part of creating a solution is understanding a problem exists. And ASIC has made it clear that it is aware of the issues and is demanding action.

An ASIC review in 2025 found that:

there is a lack of urgency in improving retirement communications
super funds are failing to adequately consider the needs of First Nations, vulnerable, and culturally and linguistically diverse members in their retirement communications
super funds with robust governance, strong data and research capabilities, and effective benchmarking are delivering better retirement communications.

ASIC reiterated that super funds have a responsibility and opportunity to lift their practices to deliver meaningful and fit-for-purpose retirement communications for all members, especially those at risk of poorer retirement outcomes. ASIC also confirmed that it will continue to monitor and drive progress and improvement across the super system.

Vanguard Super is ready to support vulnerable members

Vanguard Super recognises that vulnerable people can find the super system difficult to navigate and that over time, this can make inequality worse and weaken confidence in the retirement system.

We are continuing to better understand our membership base, in order to deliver communications that is targeted, appropriate and fit-for-purpose. Complementing that work is research that we conduct, such as the annual How Australia Retires report. The latest edition identified five key steps that could more than double retirement confidence, and included our SmartRetire quiz, designed to provide clear, practical steps to increase retirement confidence.

We have continued to develop our Super Learn Centre with articles that inform and educate members (and the general public) about retirement-related topics. This includes a range of articles that discuss planning for retirement and living in retirement.

Better practice retirement communications are published in multiple formats. At Vanguard Super, we’ve built our Learn series videos.

We’re also undertaking more practical steps, including putting in place policies and procedures for working with vulnerable members, including regular training of Contact Centre staff.

^{1 Building futures not barriers: Superannuation that works, July 2025, page 16.}

Supporting vulnerable super members