Personal financial security is crucial for every woman. Australia’s world-leading retirement system plays a fundamental role in achieving it. But we should constantly ask ourselves: Can we make the system work even better, especially for those — like victims of financial abuse — who need it most?
For many women, superannuation represents more than just a retirement fund—it’s a vital safety net, a source of independence, and often the only significant financial asset they hold in their own name.
As the CEO of the industry association for super – ASFA, I recognise the profound responsibility we have to safeguard this critical asset from exploitation and abuse. If super has a role to play in women’s financial resilience, the super industry has a role to play when that resilience is threatened.
Unfortunately, we all know too well the impact that financial abuse can have on women’s lives. It doesn’t leave visible scars, but it impacts victims and their families all the same. It’s a hidden form of violence that not only strips victims of their financial security, but also their hope for a secure future.
The relationship between super and financial abuse became glaringly evident during the COVID-19 pandemic, when the Early Release of Superannuation scheme, designed to be used by those in financial distress, unintentionally opened the door for abusers.
A survey conducted by ANROWS revealed that 19.3% of women in a relationship experienced financial abuse in the first 12 months of the pandemic, including pressure to hand over or grant access to their money. For 14.1% of these women, this included coercion to hand over their superannuation by effecting an early withdrawal of savings.
These aren’t just statistics — they’re real women’s stories. Each one is a tragedy.
Enter 22-year-old Molly, her story so bravely shared by her mother. Molly took her own life after what her mother describes as years of abuse at the hands of her partner. The same partner was then granted her superannuation entitlements as her sole dependant — a payment that the superannuation fund was legally required to make, as there were no other dependents the trustee could pay to.
This doesn’t just feel heartbreaking; it’s immoral. And yet, it’s what our current laws demand.
So ASFA — together with two other super groups, Women in Super and the Super Members Council — is advocating for changes to the Superannuation Industry (Supervision) Act. These changes will empower trustees to consider evidence of financial abuse when paying superannuation death benefits, especially in cases of intimate partner violence.
Education and awareness are also key to tackling this issue. At ASFA, we’re committed to equipping superannuation professionals with the knowledge and tools they need to recognise and respond to signs of financial abuse. We’re also working on broader initiatives to ensure the superannuation sector is proactive in protecting its most vulnerable members.
But let’s be clear: even the most robust policies and protocols can’t catch every instance of abuse. The reality is that financial abusers are often manipulative and cunning, and our current laws are not enough to stop them. That’s why legal reform is not just necessary — it’s urgent.
We must act now to close legal loopholes which allow the payment of super death benefits to abusers, especially where there are no children for trustees to pay to instead. This will ensure that perpetrators of violence cannot further victimise their partners by gaining financially through their deaths. Superannuation needs to remain a secure asset for every Australian, particularly for the women who depend on it for their future independence. This isn’t just about financial security; it’s about justice, dignity, and the right to a future free from fear.