Protect Your Retirement: Avoid High-Pressure Sales Tactics and Risky Superannuation Investments

ASIC is warning Australians to be on 'red alert' for high-pressure sales tactics, click bait advertising and promises of unrealistic returns which encourage people to switch superannuation into risky investments. 

The warning comes amid increasing concerns from ASIC that people are being enticed to invest their retirement savings in complex and risky schemes. 

ASIC Deputy Chair Sarah Court said the start of a new financial year was often the trigger for people to check their super fund's performance and urged consumers to be extra cautious. 

"When it comes to sales calls about super switching, there are some big red flags people should be alert to — being asked to make a quick decision is one of the most obvious. Remember, a good deal won't vanish overnight." 

"These calls don't have the hallmarks of a typical scam. The caller will seemingly have your best interests at heart, and they say they want to help you find a better super product or locate lost super for free." 

"Consumers should always ask questions about salespeople's connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement." 

"If you are unsure or are feeling pressured, just hang up." 

The Deputy Chair said the actions of rogue operators undermined the efforts of the rest of the industry to act in the best interests of investors. 

"There can be benefits to switching and consolidating your super but that should only happen after careful consideration of the potential risk. We strongly encourage consumers to get advice from someone independent of a sales call and go to ASIC's Moneysmart 'Protect your super from pushy sales calls' page for tips to avoid traps."