How to fast-track a super death benefit claim as ASIC steps in
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If you've ever had to navigate a superannuation death benefit claim (essentially, the leftover money paid out from someone's super fund after they pass away) you'll know it can be a confusing time.
Now, a landmark investigation by the Australian Securities and Investments Commission (ASIC) has found that many super fund trustees are dropping the ball, causing unnecessary hardship for bereaved families.
ASIC reviewed 10 major superannuation trustees – covering nearly 40% of all Aussie super savings – and found some serious problems. Shockingly, none of the funds checked were properly tracking how long it took them to handle claims from start to finish.
What did ASIC find about death benefit claims?
The review uncovered a long list of failings, including:
- Excessive delays: Some funds are taking far too long to process claims. In 78% of the claim files ASIC reviewed, delays were caused by issues within the trustee's control.
- Poor customer service: In over a quarter (27%) of reviewed claims, customer service was unacceptable. People reported phone calls not being returned, queries being dismissed, and being asked for unreasonable information.
- Confusing processes: Trustees often had unclear or inconsistent internal processes, making things harder for claimants.
- Insensitive communication: Communication was often described as "ineffective and insensitive”.
- Lack of support: There was inadequate support, particularly for First Nations claimants or those experiencing vulnerability. One woman waited more than 500 days for a $100,000 payout after her husband died, with the trustee failing to respond to her concerns about financial hardship.
ASIC Chair Joe Longo didn't mince words, stating the issues stem from leadership "that doesn’t have a grip on the fund’s data, systems and processes," leading directly to customer suffering.
How ASIC is responding to the problems
It's clear ASIC means business, putting trustees on notice by issuing an exhaustive and detailed list of 34 directives across 13 focus areas covering performance monitoring, better documentation, staff training, and perhaps most importantly, better communication and responsiveness to people's feedback and complaints. The full list is available in ASIC's report.
ASIC will be actively reviewing the progress funds make to ensure they're prioritising the needs of members and their beneficiaries.
They've also shown they're willing to take legal action against funds failing to meet standards, having recently launched court proceedings against major funds like AustralianSuper and Cbus over alleged claim delays.
Who gets the super when someone dies?
It often surprises people, but super money doesn't usually get handled by a person's will like their house or bank account might. Super is held in trust, so the fund has to follow super laws, not just the will. The first thing the fund looks for is whether the person left specific instructions (a 'binding nomination'). If there's a valid one, the fund typically must pay the super to the eligible people listed on that form.
What if there isn't a valid binding nomination? Then it's up to the trustee (the people running the fund) to decide who gets the super, following the law. They'll look for dependents like a spouse, child or someone financially reliant on the deceased. The super might go to the person's legal estate only if dependants can't be found, or in some other limited situations. If it is paid to the estate, then it gets distributed according to the will.
This is clearly a lot of work for super funds. Perhaps that's why some funds have let it slide when they're busy focusing on getting new members, providing financial advice and chasing returns. Nonetheless, getting this right is still their responsibility, and thankfully ASIC is now focusing on ensuring they meet it.
Tips for claiming a super death benefit
While change is clearly coming after this report, it won’t happen overnight - and some people don’t have time to wait. If you’re already in the middle of a claim (whether you’ve been nominated or you’re hoping to be considered), here’s how to help light a fire under your fund’s you-know-what:
- Send documents early. Most funds need a death certificate, ID, and something proving your relationship to the person who died. If you’ve got them, send them now. The sooner they have what they need, the sooner they can start moving on it.
- Keep records. Note who you spoke to and when. Save everything you send. If you hit a delay later, you’ll be able to refer back to it without starting from scratch.
- Follow up and ask direct questions. If you haven’t heard back or a deadline has passed, get in touch. Ask where the claim is at, when payment will be made, and what’s still holding it up. If the person you’re speaking to doesn’t know, ask who does.
- Understand the slow parts. If there’s no binding nomination, the fund has to work out who gets the money. That can take time, especially if others are involved. But you can still ask how the decision is made and when a final call is expected.
- Lodge a complaint. If you’ve sent what’s needed and still can’t get a straight answer or payout, lodge a complaint with the Australian Financial Complaints Authority who will look into it for free.
Accessing a legitimate super death benefit shouldn’t have to add another layer of grief on top of an already stressful situation. With these tips in mind, and the ASIC working on more permanent fixes, hopefully this aspect of super will become less of a burden going forward.
Experiencing similar frustration with your own fund? Maybe it’s time to compare some of these other options we’ve curated here at Mozo:
Virgin Money Super
- Mozo Experts Choice Award winner for Exceptional MySuper + Low Fee MySuper 2025
- Strong performing fund - 8.45% for 7 years investment returns to 30 June 2024 for birth year 1984 to 1988 (7.70% for 5 years investment returns to 30 June 2024 for birth year 1984 to 1988) for the Lifestage Tracker Option.
- Earn Velocity points on contributions and any funds rolled over (T&Cs apply)
- Simple super advice at no additional cost + automatic Death and Total Permanent Disablement cover
Virgin Money Super is a retail superannuation fund available to Australians and backed by Mercer Super, who has been providing superannuation related services to Australians for over 40 years. It offers a range of investment options from a fully managed Lifestage Tracker that does the investment work for you, to a choose your own investment mix option that gives you the opportunity to invest your money where you’re most comfortable. One Velocity Frequent Flyer Point will be awarded for every $5 of Net Super contribution during the Points Earn Period and the maximum number of Velocity Points in any financial year is 250K.
Virgin Money Super also provides automatic Death and Total Permanent Disablement cover and includes additional insurance options. Members can also get simple super advice over the phone from a qualified financial adviser at no additional cost.
Vanguard
- Winner of the 2025 Mozo Experts Choice Awards for Exceptional Super Fund for Gen Z and Low Fee MySuper.
- Benefit from one of the lowest fees on the market^.
- Choose a strong performer. Vanguard Super’s flagship Lifecycle option delivered a 16.44% annual return for members aged 47 and under – that’s above the industry median ^^
- Smart, auto-adjusting investments with their Lifecycle investment option
- Decide how your super’s invested – choose their Lifecycle investment option which automatically adjusts as you age, or take control of your super by selecting your own investments.
While relatively new to Australia’s superannuation landscape, Vanguard Super benefits from Vanguard’s 50 years of global investment expertise. The Vanguard Group was born in 1975 as a new kind of investment firm that would put investors first. The vision was to empower individuals by making sophisticated investment strategies simple and accessible to everyone. Not surprisingly, it took off. Now, they’re directing that same attitude to super.
Aware Super
- Aware Super manages over $170 billion in retirement savings for over 1.1 million Australians
- Track record of delivering super long-term returns - 9.06% p.a. over 5 years and 8.41% p.a. over 10 years to 28 Feb 2025 in the High Growth option, where a majority of members are invested.
- Winner of the 2025 Mozo Experts Choice Awards for Exceptional Super Fund for Gen X.
- Investment flexibility: Choose from a range of diversified options or single asset class options, or MySuper Lifecycle which automatically tailors your investment mix to your age over time.
Aware Super is one of Australia’s largest industry funds, managing over $170 billion for more than 1.1 million members. With a range of investment options including diversified, high-growth, and sustainable choices, Aware Super allows you to tailor your super to match your financial goals and risk appetite. As a profit-to-member fund, Aware Super prioritises delivering strong returns while keeping fees competitive, so more of your money stays invested for your future. It’s also committed to responsible investing, focusing on industries like healthcare, education, and clean energy to create positive long-term impacts. It has tools and resources to help you stay on top of your super including a mobile app, retirement planner, calculators as well as online and in-person educational events and retirement planning and advice (fees may apply).
Australian Ethical
- Over 30 years of experience in ethical investing, focusing on sectors like renewable energy, healthcare, and education.
- The Australian Shares Super option delivered 9.3% p.a. over 10 years and 8.7% over 5 years.~
- Offers a range of superannuation options that are all ethically screened.
- Recognised for meeting high standards of social and environmental performance, accountability, and transparency.
Are you looking to grow your retirement savings while making an ethically positive impact? Australian Ethical Super has been championing ethical investing since 1986, aligning financial goals with values for a sustainable future. Their approach not only seeks competitive returns, but also contributes to a more sustainable and equitable world. By focusing on future-building sectors and avoiding investments in harmful industries, Australian Ethical ensures your superannuation supports positive change.
With a proven track record and a commitment to ethical practices, it's a super fund that lets you invest with both your head and your heart. The easy-to-navigate online member portal allows members to manage their account simply, while the streamlined features empowers its users to monitor their super performance with transparency.
Spaceship Super
- Choice of growth or index fund option
- Simple fee structure
- Digital dashboard to help you see where and how your super is invested
- Mozo Experts Choice Award winner - High Growth
Spaceship Super first launched in 2017, and says that above all else it’s focussed on building long-term value for its members. This is why the fund’s options are primarily suited to people who are looking to save for retirement for at least the next 10 years, or longer. Members have a choice of the GrowthX option, which has a focus on Global technology companies, and the Global Index option which passively invests in growth assets, particularly international shares. Both options have a competitive performance track record according to Spaceship (based on annualised performance since inception) and have a simple fee structure.
Spaceship Super’s digital platform helps you to keep track of your balance, and also gives you visibility of where and how your super is invested. If you’re saving for your first home, you can also set up a first super saver account.
Winner of a Mozo Expert Choice Award for Exceptional Super in the High Growth Category.
Colonial First State Super (CFS)
- CFS has helped over 3 million Australians (and counting) prepare for an unaverage retirement
- Focused on delivering low admin fees and strong investment performance, helping you build your retirement savings faster
- Investment flexibility: Aged-based lifestage option or design your own portfolio from over 190 investment options
- Named Australia's Best Super Fund in the Mozo Experts Choice Awards
Looking for a super fund that blends experience with a focus on your financial future? Colonial First State (CFS) Super has been helping Australians grow their retirement savings for over 30 years. With a wide range of investment options, CFS lets you tailor your super to suit your goals, whether you’re after a balanced approach or more growth-oriented strategies. CFS is laser focussed on providing long-term performance for its members and states its FirstChoice Wholesale Personal Super options has one of the lowest admin fees in the market.
Colonial First State also has a range of free online tools to make it stay on top of your super and learn about investment choices. CFS also has a range of accessible advice options, to meet all customer needs. CFS has engaged Viridian Advisory to facilitate the provision of one-off personal financial product advice under their Australian Financial Services License to CFS members, as an agent of CFS. CFS also provides access to low-cost digital advice through Otivo Pty Ltd and on-going comprehensive advice through a network of third-party financial advisers.
Colonia First State was named Australia's Best Super Fund in the Mozo Experts Choice Superannuation Awards.
Hostplus
- Industry super fund, profits go to members, not shareholders
- Over 1.77 million members and $103.7 billion in funds under management
- Strong investment performance over past 20 years together with low fees
- Mozo Expert Choice Award winner - Low fee Super
While Hostplus’ origins are from the hospitality and tourism industry, it is now available to all Australians. As an industry fund, profits go back to members and it invests in projects that aim to derive strong investment returns for its members. It also aims to keep its fees and costs as low as possible. It has an option for members who want more control to make direct investments or you can also opt to let Hostpluses experts take care of your investments for you.
Hostplus also offers a range of insurance options (some automatic for eligible members), as well as financial planning and super advice to help you set and meet your retirement goals. Some advice may incur fees based on the level of advice.
A Mozo Experts Choice Superannuation Awards winner for Low Fee super categories
UniSuper
- Record of strong long-term performance across a range of investment options with 615,000 members and $124 billion in funds under management.
- Fees among the lowest in the industry
- Responsible investor - Environmental, Social and Governance (ESG) factors are considered across its major investment holdings
- No commissions to advisers or profits to shareholders, member first fund
- Highly Commended Super Fund Award winner - Mozo Experts Choice Awards
UniSuper is open to all Australians, though it built its reputation as the industry fund for the higher education sector. It has a record of strong long term investment performance (though this isn’t an indicator of future performance). According to recent Member Outcome Assessments, UniSuper promotes the best financial interests for its members and has some of the lowest administration fees in the industry. UniSuper champions responsible investment and its ESG approach includes direct engagement with companies on ESG issues as well as offering its members environmental and sustainable options to invest responsibly.
General advice about super and pensions is included as part of your membership but there are also paid advice services which vary in cost depending on the level of advice required.
Unisuper was awarded the Highly Commended Super award in the 2025 Mozo Experts Choice Superannuation Awards.
Vanguard disclaimers:
^Independent fees and costs benchmarking conducted by Deloitte, shows Vanguard MySuper Lifecycle as one of the lowest fee MySuper products as at 1 March 2024. Deloitte has only included publicly offered APRA regulated superannuation funds. The benchmarked fees and costs reference ongoing annual fees and costs disclosed in the PDS. Other fees and costs may apply.
^^ Vanguard Lifecycle Age 47 and under annual return compared against the median return for Growth (77-90) options, SuperRatings Fund Crediting Rate survey, 2024 calendar year. Past performance is not a reliable indicator of future performance.
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
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