Superannuation funds have largely ignored a new obligation to help members prepare for comfortable retirement, prompting the government to warn of an impending crackdown if more is not done ahead of a “silver tsunami” of Baby Boomers exiting the workforce.

In a scathing review of how funds were meeting their legal obligations to help members plan their retirements, the prudential and investments watchdogs found that most super funds were falling short on developing their capabilities to do this and had no concrete plans to improve their failings.