Beware pushy sales tactics targeting your super
How to keep your super safe
The Australian Securities and Investments Commission (ASIC) has warned Australians to beware of high-pressure sales tactics aimed at getting people to switch superannuation providers.
The regulator has warned that “clickbait” ads, comparison websites and promises of unrealistic returns are among the tactics being used to entice Australians into switching their retirement savings, sometimes into risky or unsuitable schemes.
Here’s what to look out for — and what to do if you’re contacted.
Why you might be targeted
Promoters of these schemes often benefit financially when you switch your super.
For example, they might charge fees to your super fund for providing advice. They might also recommend setting up a self-managed super fund, which would incur set-up and ongoing administration fees, even if the product isn’t appropriate for you.
They could also benefit from fees or commissions for moving your superannuation into a different financial product.
Often, the salespeople will make you feel like you need to decide immediately or risk missing out. But it’s important to push back and take time to stop and think before risking your retirement savings.
During sales calls, the caller may transfer you to a licensed financial adviser. ASIC warns this can be a “tactic to show they are legitimate, but they will pass you back to the salesperson to collect information, provide the advice and close the deal.”
If you’re after financial advice, you can contact us.
Red flags to watch for
ASIC warns that consumers should be alert to these tactics and be cautious when contacted to review or switch their superannuation.
ASIC says red flags include:
High pressure sales tactics.
Cold calls.
The touting of free superannuation ‘health checks’ and prizes (often via social media advertisements or websites).
Offers to find and consolidate ‘lost super’ for free.
The involvement of unlicensed people in the advice process.
Predominant engagement over the phone with limited in-person client contact with a financial adviser.
Poor or no product disclosure.
Promises of high or unrealistic returns.
What to do if you’re contacted
If you receive a suspicious or unsolicited call about your superannuation, ASIC suggests:
Hanging up immediately.
Blocking the number of the caller and consider joining the Do Not Call Register.
Reporting it to your super fund — if you have given out personal information, call your current super fund and tell them so they can block withdrawals.
Talk to someone you trust – like a family member, friend, or speak to us.
How to check your super safely
If you’re wanting to check up on your super, keep in mind the Australian government has built an online comparison tool that can help.
The ATO’s ‘YourSuper comparison’ tool compares super funds that offer a ‘MySuper’ product. MySuper products are designed to be simple, low cost and easy to compare.
A good place to start your research is your annual super statement, which includes details about your fund’s fees and investment performance. Often, you can access a digital copy via your super fund’s website or online portal.
By being more engaged with super, you can make sure it’s working as hard as it should.
We can help you determine which super fund best suits your needs.
Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/family-and-relationships/relationships-and-money
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