HESTA Super Freeze To Affect Over 1 Million Australians Until June

More than 1 million Australians with the superannuation fund HESTA will be unable to access or move their retirement savings until June due to a planned system outage.

The freeze stems from the fund's decision to switch its administration provider, a move first flagged to members in February.

HESTA is transferring its member account services to a new platform managed by GROW Inc., prompting what it describes as a necessary suspension of services, reported ABC.

Despite the advance notice, consumer advocates are warning that many members may be caught off guard by the extent of the disruption.

A HESTA spokesperson confirmed that income stream payments due in April or May would be paid early, with regular payments expected to resume by mid-May. Only urgent payments will be considered during the outage, and lump sum payments of up to 80% of account balances may be processed in some cases.

According to HESTA's website, insurance claims related to death, terminal illness, total and permanent disability, and income protection will not be processed unless already underway before the outage began.

Largest tech overhaul in HESTA's history

HESTA, which manages AU$88 billion for 1.05 million Australians, has temporarily suspended access to most of its online and account services. Members are unable to make super contributions, investment switches, withdrawals, or insurance claims until the system resumes full functionality in June.

HESTA Chief Executive Debby Blakey announced the transition in late February, calling it "the largest technology project in HESTA's 38-year history." The overhaul aims to improve member services in the long term, but in the short term, it has resulted in significant access limitations.

Cyber threats and digital safeguards

The freeze comes at a time of heightened concern over cybersecurity in the superannuation sector. Recent cyber attacks, including one targeting AustralianSuper, have put members on edge.

Xavier O'Halloran, Director at Super Consumers Australia, said that while the upgrade was intended to benefit members, many feel vulnerable amid growing threats and market instability.

"People are rightly worried," O'Halloran said, referencing the combination of cyber incidents and recent stock market volatility triggered by tariff news.

He also criticized what he views as an underinvestment in services, saying the delays highlighted a "lack of strategic vision" within the superannuation industry, adding that funds must remember their core purpose is to deliver quality customer service.

"There's been information on their website and the media release, but I think where consumers are likely to be let down here is that we know superannuation funds often fail to keep up-to-date contact information on their members," O'Halloran said.

In March, the Australian Securities and Investments Commission criticized the superannuation industry for poor handling of death benefit payouts.

Earlier this month, suspected cyberattacks targeted several super funds, with members of one fund collectively losing AU$500,000 in retirement savings.

The Financial Services Council, the peak body for the industry, has recommended that multi-factor authentication be mandated across all superannuation companies by July 2026.