AMP Superannuation has more “zombie accounts” being eaten away by insurance and fees than any other super fund, Choice says.

The bank was included in the consumer group’s Shonky Awards for “ruined retirements”. AMP’s life insurance has some of the longest delays in processing claims, and consumers may be waiting months for a payout, Choice says.

Many of the company’s super funds are performing poorly, it adds.

Choice CEO Alan Kirkland says AMP is getting “money for doing nothing”.

“Managing people’s retirement funds isn’t your average business – there’s a higher moral standard to meet when it comes to people’s security and comfort in older age, and AMP have failed this standard,” he says.

AMP’s criticism from the Hayne royal commission was deserved, he says. AMP’s financial advice division was savaged during the commission hearings for charging fees-for-no-service, and it may cost up to $1 billion to remediate customers.

“If your superannuation is with AMP, chances are you’ve had your retirement leeched off to fund its executives’ lifestyles,” the Choice report said.

AMP says it can be difficult to draw accurate comparisons in relation to inactive accounts “due to the varied characteristics of products within trusts and across superannuation providers”.

“For example, a large proportion of the AMP accounts classified in APRA’s data as inactive receive a capital guarantee,” a spokeswoman said. “It is often in members’ best interests to maintain these accounts given the future benefit they will provide.”

AMP says it supports legislative measures that aim to reduce duplicate or inactive accounts.

“In 2018, we helped more than 85,000 AMP members identify duplicate accounts, with many of these members choosing to consolidate multiple superannuation funds where it was in their best interest to do so. This work to reduce duplicate or unused accounts is continuing.”

AMP says its life insurance business has one of the highest claims acceptance rates in the industry and pays more than 95% of claims.

“In 2018, we paid $1.21 billion in Australian insurance claims,” the spokeswoman said. “AMP continues to invest in improving its claims-handling generally.”