Opinion
Late last year, I clicked on a Facebook ad about superannuation. It promised to reveal how delaying a super review could cost seven figures in retirement, claiming hundreds of dollars were slipping away daily. Within minutes, my phone rang.
A businessman offered a referral service connecting people to financial advisors. He’d previously been a director of a firm he recommended, and offered a free first appointment.
I was referred on. A young advisor called to pre-qualify me, asking if I was over 45 and had an Australian regulated super fund. Qualifying led to a phone-based discovery meeting, followed by a Statement of Advice. No fee information was provided upfront.
Forms arrived requesting super balances, member numbers, and passport details. The lead generator checked if I was excited. That’s when I paused.
His answers were polite but rehearsed. The structure was clear: a Facebook ad generated a lead, referred to an advice house for a fee, assuming switching super was likely. This occurred as First Guardian and Shield were facing scrutiny over a scheme allegedly moving $1 billion of retirement savings into risky funds.
Since then, my Facebook feed has been flooded with super-switching ads. I also receive ads offering me clients, suggesting advisors are actively buying leads. ASIC has confirmed this practice is under review, particularly where it encourages unnecessary super switches. The regulator has published a list of 44 companies potentially involved and commenced court action in related matters.
Everyday Australians need to understand that finding a financial advisor through social media isn’t ideal. Switching super shouldn’t be done on a whim, or based on advice from an internet stranger.
ASIC Commissioner Alan Kirkland described the pattern: “It starts with a social media ad, then a call, and a recommendation to switch super.” The most common move is out of an APRA-regulated fund and into a Self-Managed Super Fund (SMSF) or retail platform with higher-risk investments. He warned against clicking on social media ads and handing over details.
Most people don’t realize that advice firms often have preferred platforms and investment models. This means the conversation can shift from “should I switch?” to “how do we fit you into our system?” without the client realizing.
Advisers are legally required to act in clients’ best interests. But unless you understand how advice firms operate, you may not question whether staying position was ever seriously considered.
Retirement is emotional. Whether you have “enough” and finding the right fund pushes many towards advice. Good advice can be transformative, but the marketing and sales tactics need scrutiny.
If you notice an ad, don’t click. Seek advice deliberately. Start with your super fund and ask people you trust. Meet multiple advisors. Ask about fees, investment models, and whether staying put is a viable option. Grab your time. Super is too important to move based on fear and a hasty click.
Bec Wilson is author of the bestseller How to Have an Epic Retirement and the newly released Prime Time: 27 Lessons for the New Midlife. She writes a weekly newsletter at epicretirement.net and hosts the Prime Time podcast.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
