The lobby group Age Concern has told a select committee looking at finance company failures that the sector needs to be reformed to give more protection to retirement savings.
Over the past three years, about 30 finance companies have gone into receivership or liquidation, entered into moratoria, or frozen repayments to investors.
A spokesperson for Age Concern says older people have been hit hard by the failure of finance companies, many losing their life savings and investments for their retirement.
The group asked in its submission to the commerce select committee for better consumer protection and more reliable financial advice about investment proposals, the spokesperson says.
It also wants victims of finance company collapses to be compensated for their losses.