Aussie forced to work until the day she dies after $139,000 is wiped from her superannuation

• Aussie lost $139,000 from superannuation 

A devastated grandmother says she will have no choice but to work until she dies after $139,000 was wiped from her super following the collapse of First Guardian.

Queensland woman Debbie Simpson, 61, had dedicated half a century to building up her retirement savings.

Overnight, she had just $9 left in her nest egg when her super fund imploded in 2025.

Ms Simpson now works two jobs as she tries to rebuild her retirement savings, but fears she will never be able to rest.

'I think I'm going to be working until I die,' shetold nine.com.au.

'I'm never going to get to travel or spend time with my grandkids or do anything... because I'm just going to be working.' 

Ms Simpson is one of thousands of investors affected by the collapse.

Like many others, she had hoped to grow her retirement savings and switched her superannuation to a fund linked to First Guardian in 2023 in search of stronger returns.

Ms Simpson said she used an online superannuation comparison tool and, within 10 minutes, received a phone call that connected her with a financial adviser from Rhys Reilly, an authorised representative of Interprac.

Nearly two years after making the switch, Ms Simpson learned about the collapse of First Guardian.

Her entire balance had been transferred into YourChoice Super, which was invested in the First Guardian Growth Strategies Fund.

'I had never heard of this name before,' Ms Simpson said.

I didn't even know that it was part of it.'

Ms Simpson desperately tried to transfer her money out of YourChoice Super, which later migrated to Praemium. 

She said when she discovered her balance had been frozen, she felt like she was 'going to have a breakdown.'

Ms Simpson shared her story after Melbourne single mother Ariel Mack, 48, revealed how she had lost $168,000 in the collapse.

Looking to boost her retirement savings, Ms Mack turned to an online comparison website and was soon contacted by a financial adviser who persuaded her to move her super into investment fund AusPrac in October 2023. 

'I was just looking for something that would work better for my money,' she said.

Wanting to avoid high-risk investments, Ms Mack said she was assured the fund would produce healthy returns within five to 10 years.

She paid thousands in advice fees before her super was rolled into the fund. 

ASIC has launched Federal Court action against Diversa Trustees Limited, the trustee for Ausprac, accusing it of failing to protect investors in the troubled First Guardian Master Fund.

The corporate watchdog alleges Diversa breached its duties by failing to warn members about the fund's illiquidity risks, leaving investors exposed when withdrawals were frozen and the fund later entered liquidation.

ASIC is seeking compensation orders, including the possibility of a remediation program, aimed at recovering losses suffered by investors such as Ms Mack.

Diversa has denied wrongdoing and filed a defence in the Federal Court, arguing the losses were caused by alleged fraud and the actions of First Guardian's trustee, directors, financial advisers and platform operators, while maintaining it acted in members' best interests at all times. 

Managing director Andrew Peterson said it had been a 'very hard time' for members caught up in the First Guardian collapse.

'We are committed to making sure that the fraud committed against them is rectified, and that those responsible for it are held to account,' he said in a statement.

Mr Peterson said Diversa had also applied to the Federal Government for financial assistance for affected members and believed 'the case for a grant of financial assistance is compelling'.