Thousands of Australians Face Losing Their Retirement Savings After First Guardian Collapse
By Chloe · Published 30 Oct 2026 · Updated 30 Oct 2026
Sydney, NSW · New South Wales News
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Thousands of Australians Face Losing Their Retirement Savings After First Guardian Collapse - Sydney, NSW
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Liquidators have recovered just $8 million from more than $512 million invested in the collapsed First Guardian fund, leaving thousands of Australians uncertain about their retirement savings.
Thousands of Australians who invested their retirement savings in the collapsed First Guardian investment scheme have received another disappointing update, with liquidators warning that only a small portion of the missing money may ever be recovered.
A report released by liquidators from FTI Consulting shows that approximately $512.8 million was recorded as the value of First Guardian's investments. However, only $8.02 million has been recovered so far, representing approximately 1.56 per cent of the reported investment value.
The situation has left around 6,000 First Guardian investors waiting to discover whether they will receive any meaningful compensation. Liquidators say they cannot yet provide a reliable estimate of how much individual investors might recover because many investments were directed overseas.
The collapse has become part of a wider financial scandal involving Australia's superannuation sector. First Guardian and another investment scheme, Shield, collectively affected approximately 11,800 investors who transferred more than $1 billion in retirement savings into the failed arrangements.
One investor, Melinda Kee, has described the latest update as devastating. She transferred her superannuation into First Guardian in November 2023 after receiving financial advice. She subsequently lost approximately $400,000 in retirement savings.
Kee also leads the Save Our Super campaign, which is advocating for affected investors and stronger accountability across the financial advice industry. She has raised concerns about the amount recovered compared with the money spent on liquidation expenses.
According to the liquidators' report, approximately $6.96 million has already been spent on liquidation costs. This includes around $3.33 million in legal fees and $3.23 million in liquidators' remuneration.
The report divides the investments into three broad categories. The first includes approximately $117.6 million in investments that have been written off or settled. Only about $3.49 million has been recovered from this group, and liquidators do not expect substantial additional recoveries.
The second category involves investments worth approximately $50.75 million, from which $4.53 million has been recovered. Although further money may become available, liquidators do not expect the full investment value to be returned.
The third category is the most uncertain. It includes approximately $344.5 million in investments, much of which was reportedly directed into overseas property and speculative technology start-ups. No money has been recovered from this category so far.
The Australian Securities and Investments Commission (ASIC) is pursuing legal action against several organisations involved in the schemes. Two financial services businesses, Diversa and Equity Trustees, are defending legal proceedings brought by the regulator.
Netwealth previously reimbursed approximately $100 million to around 1,000 First Guardian investors under an agreement with ASIC. However, thousands of other investors remain without a clear compensation outcome.
Some affected investors are considering a class action. Others may qualify for the Compensation Scheme of Last Resort, although payments under that scheme are capped at $150,000, which is substantially below the losses suffered by some individuals.
Further court hearings involving major parties are expected during November and December 2026. These proceedings may provide more information about the investments, the responsibilities of financial service providers and the possibility of additional recoveries.
The collapse has renewed calls for stronger supervision of financial advisers and better protection for Australians whose retirement savings are placed in investment products.
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Thousands of Australians who invested their retirement savings in the collapsed First Guardian investment scheme have received another disappointing update, with liquidators warning that only a small portion of the missing money may ever be recovered.
A report released by liquidators from FTI Consulting shows that approximately $512.8 million was recorded as the value of First Guardian's investments. However, only $8.02 million has been recovered so far, representing approximately 1.56 per cent of the reported investment value.
The situation has left around 6,000 First Guardian investors waiting to discover whether they will receive any meaningful compensation. Liquidators say they cannot yet provide a reliable estimate of how much individual investors might recover because many investments were directed overseas.
The collapse has become part of a wider financial scandal involving Australia's superannuation sector. First Guardian and another investment scheme, Shield, collectively affected approximately 11,800 investors who transferred more than $1 billion in retirement savings into the failed arrangements.
One investor, Melinda Kee, has described the latest update as devastating. She transferred her superannuation into First Guardian in November 2023 after receiving financial advice. She subsequently lost approximately $400,000 in retirement savings.
Kee also leads the Save Our Super campaign, which is advocating for affected investors and stronger accountability across the financial advice industry. She has raised concerns about the amount recovered compared with the money spent on liquidation expenses.
According to the liquidators' report, approximately $6.96 million has already been spent on liquidation costs. This includes around $3.33 million in legal fees and $3.23 million in liquidators' remuneration.
The report divides the investments into three broad categories. The first includes approximately $117.6 million in investments that have been written off or settled. Only about $3.49 million has been recovered from this group, and liquidators do not expect substantial additional recoveries.
The second category involves investments worth approximately $50.75 million, from which $4.53 million has been recovered. Although further money may become available, liquidators do not expect the full investment value to be returned.
The third category is the most uncertain. It includes approximately $344.5 million in investments, much of which was reportedly directed into overseas property and speculative technology start-ups. No money has been recovered from this category so far.
The Australian Securities and Investments Commission (ASIC) is pursuing legal action against several organisations involved in the schemes. Two financial services businesses, Diversa and Equity Trustees, are defending legal proceedings brought by the regulator.
Netwealth previously reimbursed approximately $100 million to around 1,000 First Guardian investors under an agreement with ASIC. However, thousands of other investors remain without a clear compensation outcome.
Some affected investors are considering a class action. Others may qualify for the Compensation Scheme of Last Resort, although payments under that scheme are capped at $150,000, which is substantially below the losses suffered by some individuals.
Further court hearings involving major parties are expected during November and December 2026. These proceedings may provide more information about the investments, the responsibilities of financial service providers and the possibility of additional recoveries.
The collapse has renewed calls for stronger supervision of financial advisers and better protection for Australians whose retirement savings are placed in investment products.
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