From salary sacrificing to personal contributions, many Australians will be aware the various ways in which they can boost their superannuation.

And plenty do. More than half (54%) of super members have made at least one additional contribution to their retirement savings, research from Vanguard Australia suggests.

What many people might not realise is that it's also possible to contribute to another person's super.

"Contributing to someone else's super is often about helping build financial security within a family," Danielle Carpenter, a private wealth adviser at UniSuper, explains.

"It can be particularly valuable when one person has a lower super balance because they've either taken time out of the workforce, work reduced hours, or earn less than their partner."

So, who can you contribute to? What are the benefits? And what are the risks? Here's what you need to know.

Can you contribute to your partner's super?

Person-to-person super contributions typically occur between couples. These are called spouse contributions.

As Carpenter notes, the driving motivator tends to be addressing inequalities in retirement savings after one partner has taken time off work for caring responsibilities. But it's not the only reason.

"For some couples, it's about maximizing tax efficiency. For others, it's about building a stronger financial position as a household and ensuring both partners have adequate retirement savings.

"I've also seen couples that use it as a strategy in broader retirement planning, particularly in the years leading up to retirement when they're reviewing how their assets are structured."

The question is, how can you make a spouse contribution? Well, there are two different options for married and de facto couples: pre-tax contributions and post-tax contributions.

What is super contribution splitting?

The first strategy is contribution splitting. This involves using pre-tax or concessional contributions which have already been made to your super.

"That might be the 12% government-mandated contribution that comes from an employer. Or it might be from a salary sacrifice," explains Peter Treseder, education manager at AustralianSuper.

"Someone can split up to 85% of those concessional contributions - that have already gone in to their own super - with their spouse.

"This may be beneficial if your account is approaching thresholds that may limit you putting more money into super, or limit you in the way you can put money into super."

Members can generally apply to split their contributions in the financial year after the concessional contributions were made by lodging a superannuation contributions splitting application with their fund.

How do after-tax spouse contributions work?

The second option is making a post-tax contribution to a spouse from your own savings - money that has already been taxed.

"If your spouse is earning less than $37,000, you would be eligible for a tax offset - a rebate of tax," Treseder says.

Contributors will still be eligible for a reduced rebate if their spouse earns up to $40,000, but it cuts off after that point.

"The way that's calculated is 18% of what you contribute, so if you put in $1000, you would get $180. The maximum offset is $540, which is 18% of a $3000 contribution.

"So, it's really good for a non-working spouse, or even a spouse that has returned to the workforce part-time if they are under that threshold."

The offset can then be claimed when the contributing spouse files their next tax return.

What are the rules and limits for spouse super contributions?

Before rushing out to set up a transfer, Carpenter suggests that it's worth thinking beyond any immediate tax benefits and considering factors such as contribution caps and longer-term goals.

"One of the biggest mistakes is focusing solely on the tax benefit without considering the broader strategy. The contribution should be in support of the couple's overall retirement objectives, not just to generate a short-term tax outcome.

"Another common issue we see is people not checking their contribution caps and their eligibility requirements before contributing. This can lead to exceeding contribution caps and creating unintended tax consequences.

"I think it's also important to remember that once the money is contributed, it's generally preserved until a condition of release is met."

Can you contribute to a family member's super?

It may be common for contributions to be made between couples, but what if a parent wants to contribute to their child's super? Or someone wants to top up their parents' super before they retire?

Provided the super fund accepts the contribution and the relevant rules are met, Carpenter says that it may be possible to contribute to another person (who isn't a spouse).

"However, the tax concessions are commonly associated with spouse contributions and are generally specific to spouses and de facto partners.

"Where someone is considering contributing to a child or another family member, it's important to understand how the contribution will be treated - whether there are any contribution cap implications for that individual receiving the money as well."

Should you get financial advice before making a super contribution?

For Treseder, super members thinking about contributing to someone else should make sure that they're own retirement goals are on track first.

"It's a bit like the airplane scenario: fit your own mask before helping others. Sort your super out before you sort out your partners."

He also recommends seeking financial advice before making any decisions, as it's not a strategy that will suit everyone.

"AustralianSuper - and most super funds - provides an advice line where people can talk to a financial planner over the phone to get advice around contributing in the most effective way.

"When I talk to members about getting money into super, it's about finding the most effective approach. The way you've been doing it for years may not be the best option anymore."

AustralianSuper will offer personalised advice and guidance for members through a new online service.

The service will be available to members via the AustralianSuper member portal. Launching in stages starting this year, it will allow members to access personalised advice and guidance on topics including investment options, contributions and retirement health checks.

AustralianSuper general manager of retirement Shane Hancock says receiving quality financial advice can make a real difference to members' confidence about retirement.

"We want members to feel in control, so we're giving them the tools to get quality advice in a secure environment at a time that suits them," Hancock says.

"When the roll-out is complete, members will be able to take their online journey even further, by choosing to speak with a qualified adviser virtually or on the phone.

"Our growing base of 3.6 million members will be able to access the platform - one of the largest advice offerings in Australia."

The advice will be provided by an entity within the AustralianSuper group, AustralianSuper Advice Pty Ltd. Financial services lawyer and policy expert, Michelle Levy, has been appointed as an independent director.

Levy was previously chair of the Quality of Advice review and partner at Allens.

"Financial advice that takes into account someone's personal circumstances can make a big difference to their retirement outcomes. That advice should be accessible and simple to understand and follow," Levy says.

"Through the online advice journeys, AustralianSuper members will be able to get just that - quality personal advice and guidance whenever they need it.

"This will help members to make good decisions about their superannuation and, ultimately, enjoy greater financial security in retirement. That's what superannuation and financial advice are all about."

AustralianSuper says if online advice is enough to meet a member's needs, they can receive personalised recommendations and take steps to action these via the advice platform.

The super fund says those who choose to speak with an adviser can do so by phone or video call. Complex cases can be referred to a Comprehensive Advice adviser made available to members by the fund.

AustralianSuper says the new tools will complement the existing online education, tools and calculators it offers, which it says around 1.6 million Australians accessed in the last calendar year.

"Our ambition is to provide personalised guidance to every member, and we are investing in our people, technology and processes to achieve this within the decade," Hancock says.

"We are committed to giving members the advice they need, when they need it, and giving them the tools and confidence to create their own financial future."

The new service will be rolled out in phases, with the first online journey to launch in the coming months. Adviser-led journeys will be offered to members from early 2027. Technology provider Ignition Advice is helping to build the online capability.

This article first appeared on Financial Standard

Brighter Super has announced plans to deliver a new lifetime retirement income solution designed to enable eligible members to begin building future lifetime income benefits while they are still working.

Brighter Super says the move makes it the first member-owned fund to announce the development of this style of product, which enables eligible members still in the accumulation phase to begin building future potential Age Pension benefits while still enabling choice as to how their super is invested.

The fund says Australia's superannuation system has been highly successful in helping people accumulate retirement savings, but many Australians remain uncertain about how to convert those savings into a reliable income that lasts throughout retirement.

Brighter Super says the solution is designed to help address that challenge by allowing eligible members to begin building future lifetime income benefits during their working years, with greater income certainty and longevity in their retirement years.

By beginning to accrue these benefits during the accumulation phase, members may be able to increase their overall retirement income, potentially improve their Age Pension outcomes depending on their individual circumstances, and gain greater flexibility and choice in how they structure their income in retirement, Brighter Super says.

The fund's modelling suggests members could receive additional income of between $70,000 and $95,000 on average over 25 years of retirement.

Brighter Super chief executive Kate Farrar says the announcement reflected the fund's commitment to helping members achieve better retirement outcomes.

"Australians have become very good at building super balances. The next challenge for our industry is helping people turn those balances into an income that provides confidence throughout retirement," Farrar says.

"Bringing this approach to the member-owned sector is an important step. Rather than waiting until retirement to start thinking about lifetime income, we're helping members begin preparing and maximising future retirement income outcomes while they're still working."

The initiative builds on Brighter Super's growing retirement offering, which it said is a priority. The new solution aims to further strengthen the fund's support for members as they move from accumulating super to using their super to provide an income in retirement.

Brighter Super will develop the solution in partnership with TAL, who will provide the lifetime income guarantee underpinning the retirement solution.

TAL chief executive of group life and retirement Jenny Oliver says the partnership reflects a shared commitment to improving retirement outcomes for Australians.

"We're focused on helping more Australians have a confident retirement. TAL is proud to partner with Brighter Super on this lifetime income solution, because we're passionate about helping more people plan for retirement and enjoy access to savings that can last for life," Oliver says.

The solution will be introduced progressively, with the accumulation feature expected to become available to eligible members in the first half of 2027 and the guaranteed lifetime income option in 2028.

This article first appeared on Financial Standard

Dear Paul,

I am a 68-year-old woman still working part-time.

I had intended to work until the age of 70.

I work as a phlebotomist for a private pathology company. I retrained at 52, having started working at the age of 16.

Unfortunately, I have been on workers compensation for the past 12 months and cannot perform my daily duties.

My company has demanded I refund $4500 of the superannuation guarantee (SG) paid by them to my super account since I went on workers compensation leave.

The Workplace Injury Rehabilitation and Compensation Act 2013 states that anyone receiving weekly compensation payments who is over retirement age is not entitled to the SG.

This discrepancy needs to be addressed.

In my case I have very little superannuation. I funded four eye operations, have multiple chronic illnesses now, and became a single mum at 40.

This and not being able to work full-time have all contributed to a low superannuation balance - $4500 is a lot of money to me.

The overpayment is their accounting system's fault.

Do you think I should pay this amount? What can be done to change this Act? It is discrimination against older workers. Why?

I hope you can highlight this problem for older workers. - Sheryl

Paul Clitheroe's response

I am very sorry to hear about your situation, Sheryl, and particularly upset by your company demanding the repayment of the $4500 paid by them into your super fund, seemingly in error.

As an investment person, the complexities of workers compensation and super contributions are way out of my area of expertise.

But I fully get your point about the treatment of workers above the age of 67 and discrimination towards older workers.

In terms of repayment, I would have thought your employer would have at least taken your health and situation into account.

I'd suggest you take a look at seeking advice from Legal Aid. I think it would also be worth getting in touch with the Fair Work Ombudsman.

I'd provide contact details, but this is an issue governed by each State and Territory. A list of contact information can be found online at the Fair Work Ombudsman.

In terms of changing this bias against older workers, at Money we are pleased to be able to highlight this to our readers.

You may have done this already, but I would also encourage you to email your local and Federal member.

What to read next

• Can you access one-off financial advice through your super fund?
• More than half of super funds fail service test
• How to check if your employer is paying your super correctly
• Where to complain about superannuation
• Ask Paul: My boss hasn't paid my super for 10 months

But many Australians still aren't sure how they work or whether they could be an option worth considering.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Marisa Broome, certified financial planner and principal of wealthadvice.com.au, to explain the mechanics, benefits and risks of SMSFs.

Episode timestamps:

00:00 Introduction

01:45 What an SMSF is and how it differs from retail and industry funds

03:25 Why fees and asset allocation matter

05:00 Why people choose SMSFs

06:20 Who SMSFs are best suited to (and who should avoid them)

08:45 How much money you should have before starting an SMSF

10:00 The practical steps involved in setting up a fund

15:00 Why investors should do their homework before setting up an SMSF

16:15 Conclusion

Listen to this episode of Friends With Money

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

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Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

Before you panic, check how long it's been. If the money still hasn't arrived, there are steps you can take, including contacting the ATO to make sure you're getting what's owed.

A seemingly modest 1% increase in annual returns could leave an Australian with a super balance that's 35% larger over 30 years.

Why super remains a powerful wealth-building tool

Superannuation has had many rule changes over the years, most recently being higher taxes for super balances above $3 million set to apply from July 1, 2027.

But for most Australians, super remains a highly tax-effective structure for building wealth during their working years and, once retired, can provide a tax-free income stream.

This is why I often tell clients to maximise the earnings of their superannuation during working years, in order to increase their final superannuation balance upon retirement.

The annual tax saving for those who have maximised super balances compared to those who may choose to invest their wealth in their own name or through a company or a family trust could exceed a million dollars over all your retirement years.

The two super decisions you can control

There are only two levers that you can really control with your super.

The first is whether to put additional contributions above the 12% employer-guaranteed contribution, and the second is broadly how your money is invested within it.

Most Australians never review this super setting

Yet many Australians do neither.

They don't make additional contributions and often stay in their fund's default option for decades without reviewing whether it suits their goals or retirement timeframe.

I think this largely comes down to education.

Could your default super option be holding you back?

A "Balanced" option will look different with every superannuation fund, but they will be around 70% in 'growth' assets, being Australian and international shares, property and infrastructure and about 30% in 'defensive' assets, being mostly fixed interest and cash investments.

Typically, this is the type of asset allocation we see from those who are currently retired and drawing a pension to live from - in this case, having 30% in defensive assets makes sense.

But what investment option is right for you often comes down to a blend between your investment horizon and your overall risk tolerance.

How a 1% higher return could boost your retirement savings

Let's explore a 'High Growth' option as an example.

This could look like an allocation of 90% in growth assets and 10% in defensive assets.

For this, you would expect a higher return over a 10-year period - potentially around 1% per annum, based on a historic equity risk premium that shares will deliver a higher return than a risk-free investment of about 5% per annum, to compensate for the risk or volatility of returns that shares will produce.

Therefore, each additional 10% allocation to 'growth' assets should provide an overall 0.5% increase in the expected return.

Of course, the investment world is not as simple as the above and there will be long periods of time when the equity risk premium does not deliver higher returns than safer defensive assets, but we do know the longer the investment period, the greater the chance of shares delivering a substantially higher return.

So what is the impact on your super balance of an additional 1% per annum return?

Over 20 years it is an additional 22% higher super balance and over 30 years it is an additional 35% higher balance, assuming all other factors are equal.

This is the magic of compounding; a seemingly small higher expected return produces a significant final difference to the outcome over 20-plus years.

Could a high-growth option be right for you?

Should we all now go out and change our investment option to the most aggressive investment option?

This requires expert guidance that provides a clear picture of your personal circumstances and how much you should be aiming to build up into super to ensure you have a comfortable retirement.

However, as a general rule, if you are more than 10 years away from retirement, review your current investment option and consider whether a more aggressive option within super and perhaps lower your risk with investments outside of super is worth considering as part of your long-term retirement strategy.

The overlooked tax deduction that can boost your super

Finally, as some of the tax advantages associated with investing in property have been reduced, making additional concessional super contributions and claiming a personal tax deduction remains one of the most effective ways to lower taxable income while building retirement savings.

Particularly if your super balance is below $500,000, the amount you can claim as a tax deduction could be substantial and well worth receiving some advice on.

Australian workers miss out on billions of dollars in unpaid super each year. While new Payday Super reforms are designed to make contributions easier to track, it's still important to check you're receiving the correct amount. Here's how to make sure your employer is paying your super properly.

Unpaid super is a long-running problem in Australia. Even though employers are generally required to contribute 12% of an employee's ordinary time earnings to super, industry groups say it doesn't always happen, leaving workers with billions of dollars less for their retirement.

For a long time, it's been hard for some people to spot if they're being short-changed, but experts say a new rule coming into force this month should be making a difference.

Payday Super explained

Until July 1, your employer could pay any super it owed you into your fund account as sporadically as once every quarter.

James Koval, chief policy officer at the Association of Superannuation Funds of Australia, says this made it difficult for people in some jobs to know if they were getting their 12% guarantee.

"For those in less secure work or people who have irregular hours, it's always been very tricky to check [their] super once every three months and go backwards and go: 'Is that 12% of every hour that I worked over the last three months?'"

But now, as of July 1, your employer is legally required to make the 12% contribution into your super fund account at the same time as it pays your salary or wages.

This means instead of getting your super every quarter, you might be receiving it weekly, fortnightly or monthly.

How Payday Super makes it easier to spot unpaid super

The requirement for super to be paid more often won't prevent underpayments from happening, but it should make them easier to identify.

"It's going to be much easier for people to check in with whether their super is actually arriving on time, whether it's the right amount," says Koval.

"Even if the amount of money being received hasn't changed over the course of the year, just the frequency makes things so much simpler."

Andrew Buchan, partner at accounting firm HLB Mann Judd, agrees and thinks it may lead workers to become more engaged with their retirement fund.

"I think it will make people a little bit more aware, curious and interested in what's happening with their super," he says.

"Because money is going to drop in on a more regular basis... they might want to tweak their portfolio or the asset allocation."

How to check you're getting the right amount of super

"[Payday Super] means the amount that's going into super on your pay slip is the same as what will land in your [superannuation] account a few days later," says Koval.

"After you get your pay slip, log into your super account and just make sure that the money's arriving [and] that it's the correct amount."

Upon logging into your fund account, do the following:

• Log in to your super fund account.
• Look for employer contributions rather than your overall balance.
• Compare the contribution amount with the super listed on your payslip.
• Check that contributions are arriving shortly after you're paid.
• Keep records of any missing or incorrect payments.

Payday Super issues to be aware of

Experts say there may be some "teething issues" as employers who haven't already been making payday contributions switch to doing so.

But in the long run, super contributions from your employer should appear in your super account a few days after you've been paid your salary or wages.

"It's important that contributions reach super funds within seven business days after payday for it to be considered paid on time (unless longer applies, such as for new employees)," says Australian Tax Office (ATO) Deputy Commissioner Emma Rosenzweig.

What to do if you're not receiving the right amount of super

There can be significant consequences for you and your employer if the correct amount of super isn't paid.

Not only will you end up with a lower retirement income, but you might also lose any insurance cover you receive from your super fund.

Here's what to do if your employer hasn't paid your super in full, on time or to the correct fund:

1. Raise it with your employer

Mistakes do happen, such as incorrect fund details or payroll errors, and these can sometimes be fixed quickly, so your first port of call should be to let your employer know there's an issue.

Make sure you keep records of emails, messages and pay slips in case the issue escalates.

2. Report unpaid super to the ATO

If your employer does not resolve the issue, you can report unpaid super contributions to the ATO.

Even small super shortfalls can add up over time, so regularly checking your payslips and super account could help you spot problems before they have a major impact on your retirement savings.

A new scorecard from consumer advocacy group Super Consumers Australia (SCA) assessed the customer service performance of 20 major super funds and found widespread shortcomings in call centre responsiveness, empathy and support.

The findings raise concerns for millions of Australians who rely on their super fund for help with retirement planning, insurance claims, financial hardship applications and account enquiries.

Across the industry, super funds achieved an average score of just 49 out of 100.

"Almost all of them performed pretty poorly," says SCA chief executive Xavier O'Halloran.

"At an industry-wide average, they only got 49 out of 100. That's pretty bad."

How the super fund customer service study worked

SCA worked with Customer Service Benchmarking Australia to conduct 1000 calls to 20 of the largest Australian pension funds, including Australian Super, Aware and AMP, over three months last year.

Callers posed as either a prospective customer, someone trying to help a relative from a non-English speaking background, or a customer in distress trying to access their super early.

They then graded how customer service agents responded and gave each call an overall score out of 100.

How your super fund performed

Nine funds, including AMP, Cbus and HESTA, received an overall score below 50 out of 100, which SCA considers a fail.

Another nine funds, including Aware Super, Australian Retirement Trust and Rest, scored between 50 and 54.7, meaning no fund achieved a score of 55 or higher.

SCA notes that while there were instances of very good service, with some calls scoring as high as 86, many funds failed to provide empathy and support or shifted too much responsibility for solutions back onto callers.

Best and worst call centres

CareSuper recorded the highest overall score of 54.7.

Two funds included in the study - Australian Super and Team Super -- fell at the bottom of the table because they didn't answer enough calls to be given an overall service score.

"Australian Super, which is the biggest superannuation fund in the country, failed to pick up the call in the 15 minutes that we gave them 90% of the time," explains O'Halloran. "So that's a terrible outcome for anyone trying to get in contact with that fund."

Check SCA's Superannuation Call Centre Scorecard to see how your fund performed.

What the super funds say

A spokesperson for the Super Members Council, an industry body, criticised SCA's study for only focusing on call centres and not including other channels they said consumers use to get support.

They also told Money the study had "limitations" because the test callers were not actual fund members, meaning calls did not progress beyond member verification processes.

The spokesperson added that funds have made "significant investments" to uplift service standards in recent years.

Why the results matter

National Seniors Australia CEO Chris Grice finds the results "alarming," especially as call centres are a popular point of contact for older Australians seeking help with their super.

"[Our] members want to be able to talk to people. They want to talk to them face to face. If they can't talk to them face to face, they want to talk to them through at least a local call centre," he says.

"As AI and robo-advice becomes more prevalent, there needs to be that source of truth and super funds have an obligation to support the best interests of their members."

Calls for stronger service rules

SCA is using the results of its study to push the federal government to introduce mandatory customer service standards across the superannuation system, which it says could be realised by funds committing to independent benchmarking and better staff training.

"Superannuation is mandatory, but good customer service is not. That has to change," says O'Halloran.

The federal government did promise to introduce mandatory standards last year, but SCA says these are yet to be released for consultation.

In a statement, the federal Treasury told Money the government is still committed to bringing in the new rules, which it says will be consistent with the recommendations SCA has made.

It added that it has already consulted with industry, consumer groups and regulators on the standards and still plans to conduct a public consultation.

How to make a complaint about your super fund

Here's what to do if you have a question or concern about your superannuation:

• Your first step should be to contact your fund - one mandatory standard that does already exist is a rule requiring them to respond to most complaints within 45 days.
• If you aren't satisfied with its response, raise the issue with the Australian Financial Complaints Authority (AFCA).

Simon Sheikh had a difficult childhood where money was short.

He grew up in public housing and was the primary caregiver for his parents.

This first-hand experience of disadvantage has fuelled his commitment to improve the world and his careers, first as a social activist and, more recently, as the founder of ethical super fund Future Super.

"We're here to do a very simple thing, and that is to try to build a planet that's worth retiring into," says 40-year-old Simon Sheikh.

With 415,000 members and $13.9 billion in funds under management, Future Super doesn't invest in fossil fuels and aims instead to drive social impact with its investments, which Sheikh says can also deliver strong risk-adjusted returns.

Sheikh grew up in Sydney as the primary carer for his mother, who had a mental illness, and for his father, who had had a heart attack.

Both parents were still grieving the loss of a daughter before he was born.

Money was tight.

He grew up in public housing and was the beneficiary of "the amazing social safety net in this country" that allowed him to attend primary school, albeit a socio-economically disadvantaged school.

"Even though I grew up in a situation where we were living day-to-day off government welfare cheques, my parents were quite thrifty and didn't gamble or drink alcohol or smoke cigarettes," he says.

"I had a minimum level of comfort. That meant that I was already ahead. We had a little bit of money left over at the end of each week for private tuition."

His parents placed a high value on education.

His father had done his homework under the only working street light in his neighbourhood in Pakistan and ultimately won a scholarship to come to Australia. The private tuition, which his father paid for by taking on extra work, led to a spot at the Fort Street selective high school in Sydney.

For the first time, Sheikh came across students from middle-class backgrounds, who always had full school uniforms, and saw how disparate outcomes were for different people.

"I started to learn some early lessons about money through actually experiencing and witnessing what income inequality was doing for people and to people," he says.

From public housing to Future Super

He was offered several university scholarships, and not having anyone in his social circle who could advise on the best choice, selected the degree with the largest scholarship, a Bachelor of Commerce at UNSW.

He joined NSW Treasury as an analyst at the end of his first year and combined work and study.

Paul Keating was Prime Minister, and Sheikh started to notice how his observations about life connected with Keating's broader political narrative.

Volunteering to help set up the Australian Youth Climate Coalition resulted in Sheikh becoming the national director of left-wing activist group GetUp! at the age of 22.

He was propelled into the national consciousness when he passed out on ABC current affairs show Q&A live on air.

Explaining what happened, Sheikh says he had been battling the flu and had had a sleepless night while he wrestled with the decision to leave GetUp!.

"Not a week goes by where I'm not stopped on the street by someone who remembers that, unfortunately," he says.

How Simon Sheikh founded Future Super

During a failed but surprisingly close attempt to win a Senate seat for the Greens in the ACT in the 2013 election where Tony Abbott won power, Sheikh learned about the power of money and the scale of Australia's super system, which prompted him to found the Future Group, in particular Future Super.

"I realised that if our Federal government was going to be less involved in driving climate action, we needed to make sure that people's everyday investments could fill the gap," he says.

"And so we started our business to be able to align people's money with their values. Future Super is a for-purpose company owned by employees, impact investors and some private equity investors, and focuses on ethical and impact investing.

"Because we've got a disproportionate focus on ethical and impact investing, we can find the opportunities to show people that they can make strong financial returns from these investments and that we can manage risk."

How ethical investing can drive returns and impact

Along with seeking good returns for members, the fund looks for investments where it can make an impact, and where other investors can later come and scale up its work.

One strategy is to invest in sectors supported by government initiatives to bring investment into those sectors.

"We were very early in investing in solar farms in Australia, when there was strong government support, [which provided] downside protection for those solar farms. Those same dynamics now are playing out in social housing, which is a space we're leaning into," he says.

Most of Future Super's investment in these sectors is in credit, so that it sits higher up in the list of creditors should something go wrong.

"We like the risk-adjusted returns and the downside protection that gives our members in different market environments," he says.

A more recent investment is in microfinance bonds, which are used to provide loans to women in developing countries to start their own businesses.

Future Super worked with World Vision to aggregate microfinance bonds, lowering the cost of borrowing for the women and providing a "really good" return for members relative to the risk they were taking.

Like other super funds, Future Super offers a range of options, varying in the amount of asset protection and growth they aim to provide.

Its Renewables Plus Growth option provided an annual return of 5.81% from inception in May 2018 to May 2025. Its Balanced Index option has grown 6.56%pa over a similar period, and its Balanced Growth Pension option has grown 7.41%pa.

Why Future Super avoids fossil fuel investments

Beyond the direct impact Future Super's investments are making, Sheikh says there is also a longer-term effect.

When capital markets deploy money into investments that are good for the planet and people, it means they are moving money out of sectors such as fossil fuel.

This shift in the demand and supply of capital increases the cost of borrowing for companies such as coal miners, making it more difficult for them to fund new coal mines.

Future Super also screens out fossil fuel companies from all of its funds.

Unlike some other funds, which exclude fossil fuel companies from their investments but will invest in companies that have a small amount of fossil fuel, its investments have no direct exposure to any fossil fuels.

How the Future Super founder invests his own money

Sheikh's approach to his own money could best be described as thoughtful and deliberate.

He and his wife are very intentional about how they spend their money, always trying to live within their means and spend money in a way that aligns with their values.

A rare extravagance was to break with the family's habit of holidaying in Australia or Asia and heading to Finland to see the Northern Lights.

"We also try to live a life where philanthropy is not something we plan for tomorrow. It's something we do today," he says.

The family has started a sub-fund at the Australian Communities Foundation, which provides a tax-effective way of setting up a small charitable foundation while keeping administration costs low.

Each year they allocate some of the budget to social and environmental charities, involving their 10-year-old son in the decisions.

The latest project is to help fund a micro forest in their local community.

The Sheikh family's biggest investment by far is their stake in the Future Group business. When he started the business they put everything they had into it, house-sitting because they didn't have enough money to pay the rent.

Now they also have a few high-risk investments in start-ups, and like most successful start-up investors, most have failed but those that have succeeded, including Amber Energy, have more than made up for the failures.

All this means they need downside protection, so the family went to an insurance broker to ensure they had life insurance beyond that which comes with superannuation.

The surprising decision to leave most of his wealth to charity

Finally, they plan for the long term, having already made a will.

Most of their money will be left to charity, with only a modest amount to go to their son when he turns 35, should they die early.

"We think that's really important, because we all know that when people leave money to their children it can often be wasted," he says.

How much money Sheikh will leave is an open question and he declines to comment on whether his stake in the Future Group has the potential to make him significantly wealthy. Certainly, the fund has grown strongly.

Sheikh says that when Future Super launched, there was no super investment option that didn't have at least some exposure to fossil fuels.

The offering resonated with younger investors in particular, with the fund attracting 500 members in its first month and becoming cashflow positive after 11 months. Revenue has grown an average of 58%pa for the past four years.

"At the end of the day, there's a long-term tailwind behind ethical investing," he says.

"There may be moments where it goes out of fashion in the media, but even during those moments, people are continuing to switch their super and add contributions."

More than 1.2 million Australians manage their retirement savings through a self-managed super fund (SMSF).

It's easy to see the appeal of SMSFs.

Managing our own retirement savings can be both personally and financially rewarding. However, it's not without challenges, and these can become most apparent in the drawdown phase.

At that point, SMSFs need to achieve a critical goal: providing members with regular, reliable income while still generating above-inflation returns.

Private credit funds have the potential to achieve these goals - and more - for SMSF members who are ready to hang up their work boots.

The value of private credit in the drawdown phase

'Private credit' refers to loans provided by non-bank lenders.

Rather than investing through public markets, investors gain exposure to portfolios of privately negotiated loans that offer competitive, inflation-responsive returns.

For retirees and SMSFs looking for consistent cash flow, private credit may be an option to consider, offering a range of potential benefits:

Regular income

Private credit funds typically distribute regular income funded by interest payments made by borrowers.

As a guide, La Trobe Financial's multi-award winning 12 Month Investment Account pays distributions monthly, generating reliable income that can complement other sources of retirement income for SMSF members.*

Unlike savings accounts, which may offer relatively modest returns, private credit funds can provide enhanced income potential.

This can help retirees enjoy a quality lifestyle without the need to heavily draw on capital.

Reduced market volatility

Unlike listed shares that can experience significant market fluctuations, private credit investments tend to trade with much lower volatility.

For SMSF members concerned about market downturns impacting retirement savings, private credit can provide a degree of stability within a diversified portfolio, and help smooth overall portfolio performance during periods of market instability.

Diversification benefits

Australia's 660,000-plus SMSFs focus heavily on two types of investments.

Australian shares make up 27% of total estimated SMSF assets, with cash and term deposits accounting for 16% of overall investments.

Together, these two asset classes alone account for almost half (43%) SMSF assets.

By adding private credit to SMSF portfolios, trustees can improve portfolio diversification, which is central to lowering risk and smoothing out long-term returns.

Protection against rising interest rates

La Trobe Financial's loans are structured with floating interest rates that can increase when market rates rise.

For retirees concerned about inflation and shifting interest rates, this feature can be very appealing.

Income distributions can adjust in line with market rates, which helps to maintain purchasing power over time.

A focus on capital preservation

Capital preservation tends to be deeply important for SMSF members in retirement, and rightly so, as there can be limited opportunities to replace capital lost to market downswings.

The La Trobe Financial team understands this, and our 12 Month Investment Account has a proud track record of 100% return on capital for investors since inception.**

This hasn't happened by chance.

The La Trobe Financial 12 Month Investment Account is backed by a diversified portfolio of loans to high-quality borrowers, secured by registered first mortgages over real property in Australia.

What to look for in private credit

As the number of private credit funds available to SMSFs increases, trustees need to choose a provider with care, looking for strong credit assessment processes, conservative lending practices, transparency, and experience spanning the full economic cycle.

With a 70-year history in the Australian market, La Trobe Financial brings this depth of experience to our investors.

Long story short, by partnering with a skilled provider, SMSFs can use private credit to help members enjoy confidence in retirement with a diversified portfolio supported by regular income, above-inflation returns, and protection against rising interest rates.

Disclaimer: La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Credit Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321 (Fund). It is important that you consider the Product Disclosure Statement (PDS) when deciding whether to invest or continue to invest in the Fund. The PDS and Target Market Determinations are available on our website. Any financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the Fund.

When considering whether to invest or continue investing in the Fund, you should be aware that (1) an investment in the Fund is not a term deposit, and your investment is not covered by the Australian Government's deposit guarantee scheme. Investing in the Fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the Fund. The key risks of investing in the Fund are explained in section 9 of the PDS, available on our website. *To view our awards please visit the Awards and Ratings page on our website. ** Past performance is not a reliable indicator of future performance.

Health and tax authorities say some medical practitioners are using social media to promote early access to super for procedures including dental work, IVF and bariatric surgery, despite concerns patients may be sacrificing tens of thousands of dollars in future retirement savings.

In 2024/25, a significant portion of the $1.4 billion released from super on compassionate grounds was used to pay for medical treatment.

Last financial year, the Australian Taxation Office (ATO) received 47,630 applications for early release of super to fund dental treatment, totalling $817.6 million.

That's up from 2023/24, when the ATO received 31,780 applications for dental treatment and approved 22,520 of them, releasing $526.4 million from super accounts.

A $20,000 withdrawal could cost you $80,000

The ATO warns that accessing super early can have a significant long-term impact on retirement savings.

According to the regulator, withdrawing between $10,000 and $20,000 today could reduce retirement savings by between $40,000 and $80,000 because of lost compound returns.

Early withdrawal may also reduce any insurance cover linked to a super account.

Dodgy ads on the rise

Regulators attribute the growing number of applications to access super early to advertising from some dental and medical practitioners actively encouraging patients to use retirement savings to pay medical bills that may otherwise be funded through payment plans or other means.

Despite updated guidelines on the early release of super being announced last year, some medical and dental practitioners continue to ignore the rules.

A quick Google search uncovers multiple dental and medical providers offering information about accessing super to cover treatment costs.

The guidelines state that two dental or medical practitioners must confirm treatment is necessary to alleviate acute or chronic pain, treat a life-threatening illness or injury, or alleviate acute or chronic mental illness.

But regulators say some practitioners have been caught helping patients access super for expensive cosmetic treatments that may not meet the criteria.

Some dentists have also been found charging fees to assist patients with preparing ATO documents despite not being registered tax agents.

Between 2019 and 2025, AHPRA received 95 complaints about medical and dental practitioners involved in the compassionate release of super process.

ATO Deputy Commissioner Ben Kelly said some practitioners have even been caught asking patients for their myGov sign-in passwords so applications could be lodged on their behalf.

"It is unacceptable for anyone to pressure Australians into accessing their superannuation savings early to pay for overpriced or unnecessary treatments," Kelly says.

"Superannuation is a long-term investment designed to be used during retirement. Accessing your super early carries long-term financial risks and can cut into your retirement savings."

The ATO has also uncovered examples of practitioners making inaccurate statements in medical reports, referring two doctors to a tribunal for allegedly providing false documentation. Another doctor has been formally cautioned, while a dentist has had conditions imposed on their registration.

The red flags patients should watch for

The Australian Dental Association (ADA) has also expressed concern, reminding consumers that dentists cannot provide financial advice about the consequences of withdrawing super.

The ADA recommends dentists avoid advertising the compassionate release of super altogether.

"We are also stressing that, as well as reports, patients need a quote from the practitioner about the cost of treatment necessary to treat the acute condition, as well as an indication of future treatment and maintenance costs. That way there's complete transparency for both sides," ADA president Dr Chris Sanzaro says.

The amount of super you can withdraw on compassionate grounds is not capped, but approval is required from the ATO.

Early release attracts tax of between 17% and 22% if you are under 60 years of age.

The ATO says compassionate release is only available in limited circumstances and should generally be considered a last resort.

It also warns that it relies on medical and dental professionals to provide accurate information and act in patients' best interests when preparing reports.

Before accessing super, Australians should consider not only the immediate cost of treatment, but also what those savings could have grown to by retirement. For some people, a $20,000 withdrawal today could mean giving up as much as $80,000 in future retirement savings.

Australia's retirement story is changing quickly and testing the foundations of our retirement system.

In the year 2000, the average retirement age in Australia was 61 for men and 59 for women. Two decades on, and it has shifted later and narrowed to 65 for men and 64 for women.

Our life expectancy has increased, and the number of years we spend in retirement is getting longer, 20 years for men and 25 years for women.

We are working longer and living longer, a pattern seen across the developed world.

However, one thing has remained stubbornly constant over this time: for people nearing retirement, there is significant uncertainty about how many years of retirement their superannuation will need to fund.

Retirement, after all, is personal; you don't look at averages when it comes to your life and your needs. And when you layer in the current global economic and market volatility, these concerns are heightened.

The latest Challenger Retirement Happiness Index research found cost of living (57%), financial security (54%), and running out of money in retirement (46%) were the top concerns for Australians aged 60 and over.

Today's retirees are the first generation to have built significant superannuation savings.

Yet half of Australians aged 60+ still say they feel financially insecure. After decades of focusing on saving, when we retire the challenge changes from how much we have saved and accumulated to how much income those savings will need to deliver to last for the rest of our lives, however long that may be.

With retirement now spanning decades, small miscalculations compound.

Underestimate your how long you'll live, ignore inflation, or misjudge market returns, and the consequences can be significant.

Indeed, in March 2021, the RBA forecast inflation to lead to a 9% increase in prices; in fact, we've actually experienced a 21% increase. That translates to a stark choice for an average retiree: either draw down more income or live a life less full.

It's not all gloomy, though; our research also shows that those retirees who have a plan have greater confidence.

The plan doesn't need to be perfect; it just needs to provide some lights to guide the way and to allow people to avoid being overwhelmed when inevitable changes occur.

Working longer is not the solution

One interpretation of rising retirement age is that Australians are solving the problem by simply working longer.

To a degree, this is true. Extended workforce participation can strengthen savings, reduce drawdown years, and boost overall retirement resilience.

Staying in the workforce can also extend the ability to remain connected and to retain a sense of purpose, two areas that have a major positive impact on retirement wellbeing.

But working longer is not universally available. Health constraints, caregiving responsibilities, industry dynamics, and age discrimination limit choice. Many don't choose when to retire; it is thrust upon them.

Retiring at 65 still leaves, on average, two decades of income to fund. The bigger structural point is this: retirement planning remains framed around accumulation, not decumulation.

Around 780 Australians retire every day, however, the vast majority are not transitioning to solutions designed for this stage of life.

We know nearly four in five Australians aged 60+ (76%) would be much happier if they had a guaranteed income for life in retirement.

Yet, more than half of all Australians 60+ (59%) do not know about, or haven't heard of, lifetime income streams as a financial strategy for retirement.

Australia's compulsory superannuation system has been a global success in building retirement savings pools.

But behavioural biases and legacy product designs make converting those pools of retirement savings into sustainable lifetime income an ongoing challenge.

The next evolution of the system can move from a focus on raising balances, to a critical focus on managing longevity and income certainty.

Redesigning retirement

After decades of savings, we are asking retirees to do something that feels completely counter-intuitive - to start spending. A clear knowledge gap persists that needs to be overcome.

First, we must reframe conversations around longevity explicitly. Australians understand market volatility. They feel inflation.

But many still underestimate how long retirement lasts - and how to safely spend across decades.

Second, retirement strategies need to become more tailored and accessible. Blended solutions that include guaranteed income components are likely to play an increasingly important role.

Third, advice matters more than ever. Happiness in retirement correlates strongly with those who have received advice.

Yet advice accessibility remains uneven. If nearly half of Australians feel unprepared, ensuring greater access to advice or some form of guidance - whether digital, hybrid, or traditional - becomes critical.

Finally, behavioural challenges need to be acknowledged and addressed. Almost half of those surveyed expect an income shortfall.

However, research by the Grattan Institute found 65% of retirees super balances in Account Based Pensions remained unspent by the average life expectancy. Expectation shapes retirement behaviour - often towards underspending, over-caution, leading to a reduced quality of life.

A defining decade

Australia stands at an inflection point.

The first generation to retire with substantial super balances is transitioning from savings to spending. Their experience will shape expectations for those who follow.

If nearly half anticipate an income gap, and close to half feel unprepared, we should assume accumulation success will not automatically translate into retirement confidence.

We have built one of the most effective accumulation frameworks in the world. But adequacy at retirement is only the beginning.

The real test is can those balances be converted into reliable, sustainable income for 20 to 25 years or more, through inflation cycles, market downturns, and rising health and living costs, and the resulting increase in retirement confidence.

The next decade will determine whether Australia simply produces retirees with large balances or if we deliver Australians a retirement they can enjoy confidently and happily.

This week on the Friends With Money podcast, Michelle Baltazar speaks with Aware Super's Kate Rolfe about new research showing most parents and grandparents are willing to help younger family members buy a first home.

This often involves gifting cash, reducing their mortgages or offering low to no-interest loans, but those good intentions could potentially put their own retirement savings at risk.

They discuss how giving financial support without proper planning can affect tax outcomes and Centrelink age pension eligibility, including potential consequences such as losing access to benefits for years.

Rolfe recommends getting professional financial advice before money changes hands, considering whether to gift the funds or structure them as a loan, and weighing up lump sum versus drawdown payments.

Episode timestamps

01:09 How families can help

02:45 Retirement and pension risks

05:26 Tax advice and structuring gifts

06:43 First home super saver explained

08:32 Lump sum vs drawdown

11:09 Where to start

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

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New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

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Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

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A string of court decisions, including a landmark 2022 High Court ruling, have exposed a painful reality for Australian families: your superannuation does not automatically form part of your estate. Without careful planning, hundreds of thousands of dollars can end up in the hands of someone you never intended to benefit, and the law may offer no remedy.

For many Australians, super is their second-largest asset after the family home - often worth hundreds of thousands of dollars.

Yet unlike a bank account or property, super exists in a trust structure.

When you die, your fund's trustee, not your will, decides where the money goes, unless you have taken specific steps to direct it.

Key takeaway: Without a valid binding death benefit nomination, your super may not go to the person you expect.

The binding death benefit nomination

The mechanism that gives members control is the binding death benefit nomination, or BDBN.

Where a valid BDBN is in place, the trustee must pay the benefit in accordance with your direction.

Without one, the trustee holds a broad discretion to distribute the benefit among your "dependants": spouse, children, or anyone in an interdependency relationship.

Under the Superannuation Industry (Supervision) Act 1993 (Cth), a standard BDBN is only valid for three years and must be renewed.

Let it lapse, and you lose all control.

The high court settles the SMSF question

In Hill v Zuda Pty Ltd [2022] HCA 21, the High Court confirmed that the three-year lapsing rule for BDBNs under the SIS Regulations does not apply to self-managed super funds.

This means SMSF members can make a non-lapsing BDBN, one that remains valid indefinitely, provided their trust deed permits it. The decision was a win for certainty, but it also highlighted a trap: if your SMSF deed does not expressly authorise a non-lapsing nomination, you may still be caught by the default lapsing rules.

When good intentions are not enough

The human cost can be severe.

In Re Marsella; Marsella v Wareham (No 2) [2019] VSC 65, a deceased woman's daughter became sole trustee of the family SMSF and resolved to pay the entire $450,000 death benefit to herself, overlooking the deceased's husband of 32 years.

The Court removed the daughter as trustee, finding the discretion had not been exercised in good faith.

But even after winning, the husband faced further uncertainty; courts can send a decision back, but they cannot direct a particular outcome.

In Carr v Douglass [2016] NSWSC 854, a father's will directed his super be held on trust for his disabled son.

But his binding nomination had expired two years before his death and nobody reminded him to renew it.

His former wife then caused the trustee to pay the entire fund, over $673,000, to herself.

The Court was powerless to redirect it.

Why these outcomes keep happening

These cases are not rare, and they follow a clear pattern.

What you should do now

Check your BDBN

If it has lapsed or was never made, act immediately.

Review your SMSF deed

The High Court's decision in Hill v Zuda means you can make a non-lapsing BDBN, but only if your trust deed permits it.

Plan trustee succession

Consider who will become your fund's trustee upon your death.

If your co-trustee is also a potential beneficiary, a conflict of interest is built into the structure.

Align your will

A will that assumes super will flow into the estate is worthless without a valid BDBN directing the benefit to your legal personal representative.

Finally, if you are in a blended family, the risk is acute.

Courts have shown that trustees will often favour a surviving spouse, and adult children face an uphill battle to challenge such decisions.

A BDBN is the only mechanism that removes discretion entirely.

The bottom line

Superannuation is not governed by your will.

The courts have made clear that good intentions and longstanding family relationships count for nothing if the paperwork is not in order.

The fix is straightforward: make a binding death benefit nomination, review it regularly, and ensure your fund's trust deed supports it and aligns with your overall estate planning.

When facing redundancy, it's natural to have questions about what happens to your finances, including superannuation. One common question we often hear Australians ask is: "Is superannuation paid on redundancy?"

Understanding the rules around super contributions during redundancy can help you better navigate this challenging time.

Here, we explore your redundancy payment entitlements, whether super is payable on redundancy and provide suggestions to help you determine your next steps.

Redundancy payments in Australia - what you're entitled to

In Australia, redundancy payments are generally made when your job is no longer required due to business changes, such as restructuring, downsizing or closure. Redundancy entitlements often include:

• Severance pay - Also known as redundancy pay, this is a lump sum based on your length of service.
• Unused annual leave - Payment for any accrued annual leave, calculated based on your final pay rate. Keep in mind that unused sick leave is not payable upon redundancy.
• Notice period - If you aren't given the required notice period, you may receive pay in lieu of notice.

These payments are designed to support you financially as you transition to a new job or career path. However, it's important to know that redundancy payments are treated differently from regular wages when it comes to superannuation - so, is super payable on redundancy?

Is superannuation paid on redundancy payments?

Unfortunately, under Australian law, employers are generally not obligated to pay superannuation on redundancy payments.

Your redundancy payments (severance pay, unused annual leave and notice period) are considered "lump sum" payments rather than ordinary time earnings (OTE), which means they don't fall under the Superannuation Guarantee (SG) obligations.

The SG contributions are only mandated on your ordinary wages, such as your regular salary, commissions and some allowances. Since redundancy payments are not considered part of your OTE, they do not attract super contributions from your employer.

Exceptions to be aware of 

While employers are not obliged to pay super on redundancy, there are a few exceptions and considerations to be aware of to double-check whether super is paid on redundancy:

• Enterprise agreements or awards - Some employment contracts, enterprise agreements or industry awards might include terms that require super contributions on redundancy payouts. It's always worth checking the specifics of your contract or consulting your HR department to understand your entitlements.
• Voluntary contributions - If you're concerned about the impact of redundancy on your super balance, you may want to consider making voluntary contributions. This can help you stay on track with your retirement savings goals, especially if you anticipate a gap in employment. Options include making personal contributions or salary sacrificing in a future role.

Money - helping Australians determine what to do next with their finances

If you find yourself facing redundancy, it's important to understand your financial options. While redundancy payments provide immediate financial support until you find employment, they don't contribute to your retirement savings unless specified in your employment agreement.

For more information about superannuation and managing your retirement savings, explore the wide range of resources available at Money. Our guides provide up-to-date information to help you make informed decisions about your super.

Visit Money's Superannuation Learning Hub to learn more about superannuation, redundancy and how to stay financially secure through life's inevitable changes.

Reader question

Dear Paul,

I am working for a Perth, WA-based engineering company that is not paying our superannuation to employee funds.

This has been going on for a good 10 months from all past and present employee reports (along with other business financial struggles).

What happens if they close up/go bust? Then that super is not paid to us, is it? The government doesn't step in and cover this, does it?

And the ATO obviously isn't doing enough ensuring companies are compliant. I do wonder how in this day and age they're getting away with it from the ATO? - Nick

Paul's response

This is not good news, Nick. Not paying compulsory super, plus other business struggles is alarming.

They are required to pay your super at least quarterly and as of July 1 this year, employers must pay super at the same time as an employee's wages.

You have probably done this, but you should talk to your employer about resolving this issue. I suspect this will be unsuccessful, so it should be reported to the ATO via their online tool 'Report unpaid super contributions from my employer'. You will need your tax file number and your company's ABN.

I understand that many employees do not want to do this, fearing ATO action may hasten the company going into liquidation.

But in my experience, companies on the edge, who will not discuss how to resolve key issues such as super, are heading downhill.

The amount of super they owe you will only increase. If they fail, your super entitlements will be prioritised by the liquidator, but all too often employees do not get their entitlements.

In your shoes, I'd talk to the company about resolving late super payments. If this is unsatisfactory, report it to the ATO.

What to read next

• Are you being paid your full super in 2026?
• Payday super laws pass - here's when it will come into effect
• How to find lost superannuation in Australia
• How to get free advice from your super fund
• The pay rise move that could earn you an extra $250 a week

Australia's biggest super fund, AustralianSuper, has warned members to expect higher insurance premiums.

Inflation-weary Aussies may shrug this off as just another price hike.

But the size of AustralianSuper's premium uptick may take members by surprise.

From May 30, life cover premiums will jump 20%, while premiums for total and permanent disability (TPD) cover will surge 40%.

Premiums for optional types of cover, such as income protection insurance, will climb by up to 38%.

AustralianSuper isn't the only fund to lift premiums. CareSuper flagged an uptick in premiums from April 2026.

This matters because AustralianSuper is a goliath of the industry.

It manages over $410 billion worth of retirement savings on behalf of over 3.6 million Australians. And although only around half these members have cover through the fund, the sheer scale of AustralianSuper would give it serious clout when it comes to negotiating a good deal with insurers.

So, why the premium hikes?

Why insurance premiums through super are on the rise

By way of background, super funds organise 'group' cover for members - think of it as buying in bulk - through third party insurance companies. AustralianSuper, for instance, partners with TAL for its member cover.

Part of the appeal of group insurance is that it's both affordable and automatic - there's no need for medical examinations.

That said, super funds are well within their rights to pass any premium hikes on to fund members.

Christine Cupitt, CEO of the Council of Australian Life Insurers (CALI), says, "Australia is reaching a tipping point. The entire safety net, not just life insurance, is under pressure."

Data from CALI shows mental health is now the leading cause of TPD claims, accounting for almost one in three claims paid.

Of particular concern, mental health-related TPD claims among Australians aged in their 30s have increased 732% over the past decade.

Mental ill health is also driving one in five income protection claims, with payouts totalling $887 million in 2024.

The rise in mental-health claims is deeply concerning, especially as almost one in two Australians may experience mental ill-health in their lifetime.

In terms of insurance, this raises the possibility of higher premiums across other funds.

In March, insurance giant Zurich announced it would increase TPD premiums in response to "an increase in the volume and complexity of claims, especially those related to mental health."

Save on premiums without scrimping on cover

On the plus side, the increase is relatively small in weekly dollar terms. Over time, however, even small increases can erode retirement balances.

The increase ranges from an extra 13 cents a week (TPD plus life cover combined) for a 20-year-old professional, through to an additional $7.72 weekly for a 60-year-old blue collar worker.

Still, every cent paid in premiums is money we don't have in retirement.

What can fund members do? Plenty. Here are a few options to protect your super savings and still have adequate cover in place:

Know if you have cover

More than one in four Australians do not know what insurance they hold through their super, according to Super Consumers Australia.

So, the first step is to log into your super account, and check the policies you've signed up for (if any) - and how much cover you have.

You may not have cover at all.

Super funds are required to cancel insurance on accounts that had been inactive for 16 months. Also, default insurance no longer applies for members aged under 25 or for account balances below $6,000.

Check your work rating

A 'work rating' helps your super fund classify your job into one of several risk-based categories, chiefly:

• Blue collar
• White collar, and 
• Professional.

Some funds drill deeper into occupations, and may include 'light blue collar' workers like flight attendants and hairdressers.

The main point is that higher risk jobs attract higher insurance premiums.

If your job is incorrectly classified, a quick call to the fund can sort this, and potentially see you save on premiums.

Rethink multiple super accounts

If you have more than one super fund - as four million Australians do - you could be doubling up on premiums.

This will eat into your super savings, and you may be paying for cover you can't claim. With income protection insurance, for example, the most you can usually claim is 75% of your income prior to falling ill even if you have multiple policies.

Consolidating all your super into a single account can see you save on insurance and fees. However, the picture can change if you have a pre-existing medical condition.

Super Consumers Australia warns that funds may impose exclusions or waiting periods for pre-existing conditions. Worst case scenario, a claim could be denied if you change funds.  The only way to know is to read a fund's product disclosure statement (PDS).

Consider insurance outside of super

Insurance through super tends to be cost-effective because it is purchased in bulk.

In addition, premiums are paid from contributions taxed at just 15% rather than after-tax income, which can be taxed at far higher rates.

The downside is that cover is not tailored to your needs.

To know if your level of cover meets your needs, jump onto the Moneysmart life insurance calculator (or your fund's equivalent).  You can always request an increase in insurance though this will mean an uptick in premiums.

Alternatively, it's possible to arrange insurance outside of super. This can especially apply to income protection insurance, which is not always available as a default option through super.  The added sweetener is that premiums on income insurance are usually tax deductible, when you pay for cover from your own pocket.

The bottom line

The ability of super funds to bulk buy insurance means members generally get a good deal on the cost of cover, even at a time when premiums are rising.

It is possible to compare premiums charged by different funds but it means poring over the fine print of PDS documents.

The more pressing issue may be knowing whether you actually have cover in place - and if it's the right amount for your needs. Hopefully you'll never have to rely on it, but if you do, the payout from insurance held in super can be a financial lifeline when the cover is set up correctly.

While Chalmers did not say what the reforms will be, he was clear about what he does not want for the performance test.

"We have been trying to progress this work for some time, as you know. I want to be really clear that I have absolutely no interest in watering down or ditching the performance test. I see it as a really crucial part of the superannuation system," Chalmers says.

"There are also barriers to some types of investment, and we have indicated a willingness privately and publicly with the funds and publicly with all of you to reform the performance test if we can do that in a way that doesn't diminish the high standards and in a way that doesn't diminish super funds' responsibilities to members."

Chalmers added that despite having had discussions with the superannuation sector "for some time", there is still no consensus on how to move forward with the changes.

"We would prefer a consensus, if one is possible, but at the very least the paper that I'll be releasing with [minister for financial services] Daniel Mulino soonish will give you an updated sense of our thinking here in the hope that we can try and get some people around one of the options presented in the paper," he says.

Chalmers initially flagged changes to the superannuation performance test in August 2025 after hosting the Economic Reform Roundtable.

Speaking at the ASFA Conference in November 2025, Chalmers said Treasury had established a technical working group which was working on possible changes and how to enact them.

"That consultation will be really targeted with industry and with experts like yourselves, and it will be guided by three main principles. First, any change to the performance test must uphold member outcomes as the core purpose of the test. Secondly, changes must maintain an objective standard or benchmark for fund performance. And third, any changes must be enduring to set the test up for long term stability," Chalmers said at the time.

This article first appeared on Financial Standard

Not all employers do the right thing by their employees and pay the full 12% superannuation guarantee they are legally required to.

Each year, billions of dollars in superannuation owed to Australian workers is never paid. Industry Super Australia estimates unpaid super remains a multi-billion-dollar problem, leaving millions of workers short-changed when they retire.

Unpaid super is often described as wage theft, because it is money that belongs to you and should already be sitting in your super account.

Which workers are most affected by unpaid super

Workers in accommodation, construction and food services are among the most likely to miss out on superannuation payments.

Treasury analysis has shown unpaid super is far more common among small businesses, particularly employers with fewer than 30 staff and turnover under $10 million.

If you work casually, part-time, or change jobs regularly, you are at even greater risk of not being paid correctly.

The superannuation guarantee rate for 2026

The superannuation guarantee rate is now 12%.

The rate increased to 11.5% from July 1, 2024, then rose again to 12% from July 1, 2025, where it will remain legislated for now.

If your employer is paying anything less than 12% of your ordinary time earnings, they are underpaying your super.

How often employers must pay super in 2026

Until payday super starts, employers must pay super at least four times a year.

Some employers choose to pay super monthly or with each pay cycle, but this is not yet mandatory.

Super payment deadlines you should know

Super payments must be received by fund by:

• April 28, for work done between January 1 and March 31
• July 28, for work done between April 1 and June 30
• October 28, for work done between July 1 and September 30
• January 28, for work done between October 1 and December 31

If there is no payment in your super account on or before these dates, it is a red flag.

How to check if your super is actually being paid

Do not rely on your payslip alone. A payslip showing super does not mean the money has reached your fund.

To properly check:

• Log in to your super fund account
• Look for employer contributions, not just balances
• Match the amounts paid to your earnings and the 12% rate
• Check payment dates against quarterly deadlines

If payments are late or missing, follow up immediately.

What to do if your employer hasn't paid your super

1. Raise it with your employer

Ask why your super has not been paid.

Mistakes do happen, such as incorrect fund details or payroll errors, and these can sometimes be fixed quickly.

Make sure you keep records of emails, messages and payslips in case the issue escalates.

2. Report unpaid super to the ATO

If your employer does not resolve the issue, you can lodge an employee notification with the Australian Taxation Office.

The ATO enforces superannuation law. It can audit the employer, order back payments with interest, and apply penalties.

If an employer still fails to pay, your records and correspondence may be vital evidence in any future legal action.

Not all unpaid super is recovered, particularly if an employer becomes insolvent, which is why early action matters.

Unpaid super can also mean no insurance cover

One of the most serious consequences of unpaid super is losing insurance.

Most Australians have life insurance and total and permanent disability insurance through their super fund. In many cases, this cover only remains active while employer contributions are being received.

If contributions stop and you die or become disabled, your dependants may not receive insurance payouts unless they pursue legal action.

Insurance rules vary between funds, but regular super payments are often what keep cover in force.

Why unpaid super is hard to detect

One reason unpaid super is so widespread is that it is not paid with each wage.

Quarterly super payments mean delays, making it harder for workers to track and easier for employers to miss or avoid payments. It also slows detection and recovery by the ATO.

This is about to change.

Payday super starts on July 1, 2026

From July 1 2026, employers will be required to pay superannuation at the same time as wages.

About 9 million Australians are expected to benefit from payday super, which will significantly reduce unpaid super and improve retirement balances.

Treasurer Jim Chalmers has said a 25-year-old median income earner could be around $6000, or roughly 1.5%, better off at retirement under payday super because contributions are invested earlier.

More frequent payments will also reduce payroll risk for employers by preventing large unpaid super debts from building up.

What workers should do now

Until payday super begins, it is critical to keep checking your super account after each quarterly deadline.

If your super is late or missing, act fast. The longer unpaid super goes unnoticed, the harder it can be to recover.

Older Australians retiring without owning a home will need about double the superannuation of those with a paid-off property, if they want to enjoy a comfortable lifestyle, according to advocacy group Super Consumers Australia.

The 2026 Retirement Savings Targets for Renters report calculated that a typical single retiree who rented required $659,000 in super to ensure a financially secure future, compared to $322,000 for a retiree who occupied their own mortgage-free property. A couple renting would need a combined $786,000 in super compared to $432,000 for a couple who were homeowners.

Only 10% of retired homeowners were in financial stress, compared to almost half of retired renters, the report's author Katrina Ellis said.

"It wasn't a pretty picture and showed that retired renters were more than three times more likely to be in financial stress than homeowners," said Ellis, the deputy CEO of Super Consumers Australia.

 
How homeownership can improve retirement income

This latest study is another compelling argument of why it's vital to aim to have a fully paid off home when you retire.

Not only does it give you a roof over your head, it can also be used to improve your lifestyle in retirement. Many Australians enter retirement with more wealth tied up in their home than in their super and some may need to release some of this equity to give them more cash to enjoy their leisure years.

Two factors elevate the importance of homeownership in retirement planning. One is the fact that the family home is tax free - you pay no capital gains tax when you sell it. The other is that under our retirement system the family home is exempt from the assets test in assessing pension entitlements.

Why the family home matters under Australia's retirement system

Australia's retirement system is underpinned by three potential sources of income, a means-tested age pension, compulsory superannuation and voluntary savings inside and 
outside super.

The government's 2020 Retirement Income Review explicitly included homeownership as part of the third pillar.

"The home is the most important component of voluntary savings and is an important factor influencing retirement outcomes and how people feel about retirement. Homeowners have lower housing costs and an asset that can be drawn on in retirement. Using relatively small portions of home equity through the Home Equity Access Scheme (HEAS) or similar equity release products can substantially improve retirement incomes for many people," according to the review.

What is a home equity release loan or reverse mortgage?

A home equity release loan, also known as a reverse mortgage, allows you to convert some of your home's value into cash for other purposes - renovations, travel, funding in-home care, helping family or simply meeting day-to-day living expenses - all without needing to sell the property or downsize.

The loans can usually be accessed as a lump sum, regular income or a line of credit.

These products are offered by lending companies and the Commonwealth government, which runs the HEAS through Services Australia. One big advantage of the HEAS is its low interest rate, 3.95% compared with 8% to 10% from private sector lenders. Its drawbacks include the fact it can take some time to be approved - often two to three months - and it's more restrictive than some other products in the marketplace.

It's only available to people of pension age - currently 67 - and the maximum amount available via the scheme is 150% 
of the maximum pension rate. However, a retiree can choose to withdraw a smaller amount, can stop or start payments at any time, and can pay back the loan at any time. The HEAS was re-named and extended to self-funded retirees in July 2019 and the take-up has increased.

From July 2022 it was further extended so participants could also access up to two lump-sum advances a year, capped at 50% of the maximum annual rate of the age pension. At the same time a no negative equity guarantee was introduced, ensuring that the loan amount owed will not exceed the market value of the property used as security.

There are risks involved in all these schemes and it may have a long-term impact on your finances, so it's usually worth getting independent advice before you proceed.

What are the risks of using home equity in retirement?

If borrowing against your home is not for you, downsizing also provides another way of boosting your retirement income. This involves selling your current home and buying another and, in particular, can suit those who would prefer smaller and more convenient homes as they age.

The big drawback is that selling and buying is expensive. Costs include stamp duty, real estate agent fees and moving costs. Stamp duty on a $750,000 purchase, for example, varies from a low of $19,208 in the ACT to $40,070 in Victoria.

A plus for older people - 55 or older - is that if you sell a family home you have lived in for at least 10 years, you may be eligible to put some of the process of downsizing into your fund. This can amount up to $300,000 for each person and there is no upper age limit on taking advantage of this rule.

Can renting out part of your home increase retirement income?

If neither downsizing or borrowing against your home appeals, you could consider raising additional income by renting out part of your home.

This could work, in particular, if you have a home that would easily convert to dual occupancy or you're a person who doesn't enjoy living alone.

Remember it's important to make sure you are comfortable with anyone who is sharing your home and check out any potential tenants. You could also consider providing short-term accommodation.

Keep in mind that renting out part of your home will have tax implications, both income and capital gains, and could also impact any pension entitlements you receive from the government. You may need professional advice or check out the free financial advice information service provided by Services Australia.

How the Home Equity Access Scheme works

How it works is illustrated by case studies on the Pension Boost website (pensionboost.com.au). This company helps retirees apply for the HEAS for a fee ($440 for a pensioner and $660 for a non -pensioner).

It says it refunds these fees if the application is unsuccessful. And, of course, you can also apply for the scheme yourself through your Centrelink online account linked to MyGov for no fee. This site also enables you to calculate how much you can borrow.

How one retiree used HEAS to boost her income

One case study on pensionboost.com.au concerns 80-year-old Louise who owns a Brisbane apartment, valued at $525,000.

Louise is a single full pensioner who needs extra income to help pay for in-home care. It's estimated she can draw down $13,822 a year for 24 years with no impact on her pension, giving her a total annual income of $41,496 a year. After 10 years she would still own 73% of her property and after 20 years, 45%.

Today's 60-64-year-olds have average super savings of $355,451. On the face of it, these seniors are well placed to enjoy a decent retirement. But there's a catch. We're living longer, have higher expectations for retirement and the age pension doesn't kick in until 67 years. As a result, our super has to do a lot of heavy lifting.

Australians are concerned about this. Research by UniSuper shows more than 90% of us worry about retirement. These uncertainties help explain why retirement planning is the leading driver for Australians seeking financial advice. That's great for those who can afford it, but many can't.

The median cost of ongoing advice in 2025 was $4668, according to online financial advice service Adviser Ratings. As a result, one in two Australians has never received advice on preparing for retirement.

The good news is super funds are filling the gap. Many have expanded their advice offerings, supported by new legislation that allows funds to provide limited personalised advice and deduct the cost from a member's account.

Every bit of quality advice helps. Aware Super reports members who received financial advice had, on average, 22% more in super, which equates to an extra $150,000 in retirement savings. With this in mind, let's look at the advice available through super funds.

What advice can super funds legally provide?

Most funds offer general advice through a phone or video call. It's not entirely free, as the cost is included in fund fees. But you've already paid those fees, so why not take advantage of the service?

General advice is limited to topics relating to your super and your fund's product offerings. While it doesn't consider your personal circumstances, it can help you get to know your super better.

What is limited personal advice through super funds?

For single-issue queries, such as investing in a transition-to-retirement account, your fund may offer non-personalised limited advice. The lines are blurred on cost. Some funds charge for this advice, others don't.

More broadly, several funds provide advice that sits somewhere between general and comprehensive advice. Cbus Super, for example, offers Advice Essentials Plus. It costs $990 and gives members access to retirement planning advice relating to Cbus Super products, potentially even taking into account the needs of a non-member spouse or partner.

Brighter Super offers a retirement health check at no additional cost - the service is covered by existing administration fees.

Members receive a plan showing their retirement outlook, including age pension eligibility and how long their savings could last.

How much does comprehensive retirement advice cost?

Comprehensive advice, which takes your full situation into account, is regarded as the gold standard. It may be delivered by a fund's in-house advisers or through a referral to an external service. The common thread is that it doesn't come cheap.

As a guide, Hostplus members can have their progress towards retirement assessed for a fee of $295. From there, comprehensive advice costs from $1500 to $4000.

At Vision Super, fees for comprehensive advice start at $2090. Fees for Brighter Super members start at $990.

Can digital tools replace retirement advice?

The thing is, you may not need to pay for advice at all. An increasingly sophisticated range of digital tools is available, particularly through the larger funds.

Aware Super, for example, offers My Retirement Planner, an online calculator that uses a member's current details to answer three key questions:
• How much money do I need in retirement?
• What will my super balance be when I retire?
• What will my retirement income look like, including possible age pension payments?

Building on this, in late 2025 Aware Super launched Retirement Manager. It's a digital tool that helps retirees set up an income stream, choose an investment option and model different income and spending scenarios.

Steve Travis, Aware Super's group executive for member growth, says Retirement Manager "takes the stress out of retirement planning, giving members the power and flexibility to create a personalised plan that can be easily adjusted as their needs and circumstances change".

Other funds are also investing in digital advice. MLC Super members can use Money View, an online tool that shows whether you're likely to have enough for retirement. It's backed up by MLC's Retirement Projector, which reveals whether your super is retirement ready.

Hostplus, winner of Money's 2026 Best of the Best award for Innovation in Digital Advice Tools, has developed SuperSmart, an education-led digital tool. Hostplus's Maurizio Lombardi describes SuperSmart as "a one-stop shop for members looking to uplift their super knowledge or seek advice, all seamlessly integrated to match individual goals and preferences".

Are super fund seminars worth attending?

Digital advice can be convenient and user-friendly. But there can be something very reassuring about sitting in a room full of like-minded people, listening to an expert explain the finer points of super and retirement planning.

That's exactly what fund seminars offer. Widely run by the major funds and usually free of charge, these events are a chance to learn, ask questions and walk away better informed.

How to get retirement advice through your super fund

The bottom line is the advice options provided by a super fund should be on your radar. They're likely to become increasingly important as you approach retirement.

As a starting point, pick up the phone and talk to your fund. The advice you receive may cost nothing, but it could mean a more rewarding retirement.

Correction: A previous version of this story incorrectly stated that a fee applied to the Brighter Super retirement health check. The information has now been updated.

ATO warns Australians about using super for dental work

Consumers are being warned about the hazards of drilling into their super fund to pay for dental work.

Ben Kelly, Deputy Commissioner of the Australian Taxation Office (ATO), says some health professionals may be using predatory practices to get consumers to inappropriately access their super to pay for medical bills.

"A red flag to look out for is health practitioners or third parties who use social media to advertise early access to super for cosmetic or dental procedures," says Kelly.

"This type of promotion is a clear warning sign that practitioners or third parties might be willing to exploit an individual's circumstances and encourage them to take risks with their super."

The ATO says consumers should be especially wary of health providers who ask for your myGov sign-in so they can 'apply for you'.

"Sharing your myGov details puts your identity security at significant risk," notes Kelly.

Australians withdrew $817.6 million from super to pay for dental treatment in 2024/25, a 55% increase on the year before.

Two-thirds of Australians only visit the dentist when they have a problem, and the Australian Dental Association says affordability is the main factor that keeps us away.

Free One Pass membership but is it a good deal?

OnePass is a loyalty scheme offering free delivery, supersized Flybuys points, and 365-day returns with major brands including Bunnings, Kmart, Target, Officeworks and Priceline.

Membership normally costs - $4 monthly or $40 annually.

However, this week saw Wesfarmers - owner of the brands listed above, announce a 6-month free trial to its OnePass program.

Wesfarmers is framing the offer as a helping hand for consumers during a time of surging fuel costs.

Bunnings Managing Director, Michael Schneider says, "We know that every dollar counts right now. Being able to shop online and have your order delivered for free makes a real difference to the weekly household budget."

That may be the case.

But research shows customer loyalty schemes do more than discourage consumers from shopping around.

The data collected through these programs enables retailers to generate personalised marketing, which further encourages more spending at the same store.

One in two refinancers sticks with their original lender

It seems there's nothing like the prospect of losing a customer for banks to rethink their home loan rates.

Research by comparison site Money.com.au found nearly half of mortgage holders (49%) u-turned on their plans to switch lenders after being offered a lower interest rate by their current bank's retention team.

Just 23% of home loan borrowers switched banks despite receiving a competitive counter-offer from their current lender.

Money.com.au's Debbie Hays says lenders often sharpen their pricing when a borrower signals they're ready to walk.

She adds, "In most cases, the best you can hope for is your bank matching the competitor's rate - they rarely beat it."

Even so, you can still be in front financially by avoiding refinancing costs like mortgage discharge and government fees.

New free tools to help plan your retirement

Over the next 10 years, 2.5 million Australians will hang up their work boots and head into retirement.

But one in two 55- to 66-year-olds are worried about running out of money.

One in three feel they're already falling behind when it comes to retirement plans.

In response, money watchdog - the Australian Securities and Investments Commission (ASIC), has launched a range of free and independent tools and resources to help Australians plan for retirement.

The tools, which can be found on Moneysmart's retirement hub, include a retirement planner, which shows you much income you can expect in retirement based on super savings, the Age Pension and other sources.

ASIC Commissioner Alan Kirkland, says, "It's natural to feel uncertain about retirement but without a clear plan in place that uncertainty can quickly turn into anxiety about whether you will have enough money.

"The new resources on Moneysmart can help people move from worry to clarity, and plan for their future with greater confidence."

Major lender cops $4 million fine for spamming

Latitude Financial - Australia's largest non-bank consumer finance company, has been slugged with a $3.96 million penalty for breaching spam laws a whopping 2.7 million times.

The Australian Communications and Media Authority (ACMA) found that between March 2024 and April 2025, Latitude sent more than 2.3 million messages promoting credit cards and other financial services.

The messages not only failed to provide accurate contact information (a must-have under Australian law), over 344,000 messages didn't have a working unsubscribe feature.

It's not the first time Latitude has been fined for spam breaches.

In 2022, the company paid a $1.55 million penalty for similar issues.

ACMA member Samantha Yorke says, "Latitude is now a two-time offender and it is disappointing that it let consumers down again.

Yorke believes there is "no excuse" for this non-compliance, adding, "The spam laws have been in place for more than 20 years."

It raised concerns over the proposal to remove the 'but for test' from the Compensation Scheme of the Last Resort (CSLR), calling it 'deeply unfair'.

Treasury proposed a series of reforms yesterday to curb dubious lead generator and superannuation switching activities and make platforms more accountable for the products they offer members.

It also opened consultation on the sustainability of the CSLR and the best way for the industry to fund it.

These reforms are in response to the Shield and First Guardian collapses, which saw more than 11,000 Australians invest over $1 billion into high-risk and inappropriate products.

Super Consumers Australia chief executive Xavier O'Halloran says reforms need to focus on preventing harm before it occurs.

"Dodgy lead generation sales practices allowed the harm to spread at an industrial scale. Disrupting this business model should be the highest priority. The most effective way to do that is to target their revenue by banning switching fees being paid from super," O'Halloran says.

"This needs to be coupled with stronger trustee obligations, and requirements for trustees to fund compensation to victims when they fail to protect their members from harm."

O'Halloran added consumers expect trustees to act as gatekeepers and creating incentives for them to do their job will support a safer system.

In the CSLR reforms, Treasury proposes revising the treatment of counterfactual loss for CSLR-eligible financial advice complaints.

The Australian Financial Complaints Authority (AFCA) generally determines loss in financial advice complaints using a counterfactual ('but for') approach, comparing the consumer's actual position following the breach with the position they would reasonably have been in had the misconduct not occurred.

"The use of a counterfactual methodology can materially affect the amount ultimately payable by the CSLR," Treasury says.

"Depending on the nature of the investment, the relevant time horizon and the way the counterfactual is constructed, compensation may exceed capital loss alone, including where losses are assessed across individual products rather than by reference to the consumer's overall portfolio position."

Treasury poses a key policy question of if the 'but for' approach needs to be changed and if so, how to balance fair compensation for consumers with the longer-term sustainability and affordability of the scheme.

"The proposal to remove the 'but for test' is deeply unfair and undermines a basic tenet that people should be compensated for losses that flow from misconduct," O'Halloran says.

"The right way to address sustainability is to stop harm from occurring in the first place and make it easier to ensure those responsible pay. Cutting off compensation to victims who have seen their retirement savings destroyed is a counterproductive policy outcome."

While welcoming the proposals, Super Consumers Australia cautioned that not all measures will deliver the same level of protection.

"We'll engage constructively through the consultation, but it's important to be clear some of these proposals will make a real difference, and some risk taking us backwards," O'Halloran says.

"This is a critical opportunity to reset the system. Getting this right means shutting down predatory practices for good and rebuilding trust in super for millions of Australians."

Financial Advice Association Australia (FAAA) chief executive Sarah Abood welcoms the consultation papers and says the FAAA will carefully review the proposals in coming weeks and will engage with members on their responses.

"In the current system, a declining number of financial advisers are paying the largest share of the CSLR levy despite having nothing to do with the misconduct that gave rise to the need for consumer compensation," Abood says.

"Bi-partisan support for proportionate, effective reforms that help victims, prevent misconduct, and hold those responsible accountable, is crucial for investor confidence and market efficiency."

The Super Members Council (SMC) also welcomed the government's move to reset the compensation scheme by better reflecting where the biggest losses and risks are in the system.

"We strongly oppose pushing the bill for the compensation scheme's blow outs onto ordinary Australians who have chosen the safeguards of the highly regulated super system, but the proposed changes will make the scheme more sustainable," SMC acting chief executive Georgia Brumby says.

SMC added the government must ensure self-managed super funds (SMSFs) can only claim from CSLR if they help support it and make it fairer and more sustainable. Currently, SMC says SMSFs account for about 80% of existing claims on the CSLR scheme relating to advice in that sector.

The Association of Superannuation Funds of Australia (ASFA) says the recommendations will go a long way in reducing CSLR claims in the first place.

"Unregulated lead generators, aggressive sales tactics, and conflicted financial advice have caused real consumer harm. Better licensing, more time for funds to check the safety of transactions, and stronger advertising frameworks will be much-needed guardrails," ASFA chief executive Mary Delahunty says.

"The vast majority of Australians have their super savings in a safe, tightly regulated system. But today's announcements address activity on the edges of this safety zone."

ASFA also welcomed the government's step to review CSLR's funding arrangements.

"ASFA welcomes this as a step towards a fairer outcome for the millions of super fund members who contribute to the scheme but cannot claim from it," it says.

Delahunty says the detail will matter, and ASFA looks forward to consulting with government on behalf of the superannuation sector over the coming months.

SMC says the government's proposal lacked detailed review on conflicted remuneration and refreshing official guidance to ensure there are no loopholes in this key protection.

"This is missing from the government's proposals and there is further work to be done," SMC says.

"The proposals are important steps towards protecting Australians from catastrophic financial collapses that destroy their retirement savings - but there is an opportunity to go further," Brumby says.

"If people are considering switching from a tightly regulated super fund into a potentially higher risk product, they deserve clear, like-for-like information that genuinely helps them understand the difference this will make to their retirement - so they're not left comparing apples with oranges."

This article first appeared on Financial Standard

Having a good understanding of Australia's complicated retirement income system can go a long way to easing the stress over whether you have saved enough money to see you comfortably through your retirement.

Unfortunately, for most middle-income Australians, there isn't enough affordable financial planning advice out there to guide retirees through the maze.

Independent financial adviser Nick Bruining says: "One of the big knowledge chasms for many is how the age pension system works hand-in-glove with our savings to generate a truly surprising result."

He's passionate about this area and has just written a book on the topic, appropriately titled Don't Panic: why you can retire with less than you think.

It's aimed at people who are attempting to navigate the system alone.

A co-founder of Netplan.com.au, Bruining is a director and board member of the Certified Independent Financial Advisers Association.

Its members charge a flat fee and take no commissions or volume-based payments, or any other benefits or remuneration that can influence advice.

He offers the following example to show that you can achieve a comfortable lifestyle and set all the angst aside.

How much money do you really need to retire comfortably

"Let's take a typical homeowning couple, with a relatively modest amount in savings. We'll use a figure of about $460,000, which, it will soon become apparent, is the current sweet spot for maxing out the retirement income system.

"The Association of Superannuation Funds Australia (ASFA) estimates a couple's combined retirement expenses sit somewhere between $54,240 for a modest lifestyle and $76,505 for a comfortable one," says Bruining.

"While that will increase each year with inflation, at some point in the future as you age, you won't be spending as much as you used to." He says spending typically declines by up to 30% as you get older.

"Let's assume that most of the $460,000 is parked in super and you're now able to convert the whole lot into an entirely tax-free, income-paying investment called an account-based pension.

How account-based pensions and the age pension can work together

"Assuming you're both at least 67 years old, the only rule that you need to obey is that you must withdraw 5% of the account balance each year before June 30. You can take out more if you want to as a lump sum withdrawal or regular payment amounts, all of it completely tax free. In fact, if it's all set up and done properly, you won't need to file a tax return ever again," says Bruining.

He says you can also stick to a relatively safe conservative investment portfolio, such as a capital stable investment option that allows you to sleep soundly at night.

"The $460,000 is set up to pay the minimum 5% a year and translates to $884.62 a fortnight. Most account-based pension funds will allow you to select fortnightly payments if you like."

The income from your super amounts to $23,000 for the year, while the maximum combined age pension is $1777 - or $46,202 for the year, giving you an annual income of $69,202.

It's the sweet spot where you get the maximum age pension being supplemented by your super account-based pension payments.

Why $460,000 can be the age pension 'sweet spot'

"The bottom line with our example of $460,000 in savings is that there won't be enough deemed income to trigger the Centrelink income test threshold of $380 a fortnight," he says.

"The current combined threshold for a couple is $481,500 in assessable assets. We used the 'scrap' value of home contents and personal effects that Centrelink uses, attaching a value of $10,000 on those fixed assets and a private second-hand sale value on the car of $10,500.

"Our world class system works on the underlying principle that if you have the means to either fully or partially fund your own retirement, you're compelled to do so. Through the application of an asset and an income means test, the well-off miss out.

"If you're lucky to have inherited a $7 million beach shack overlooking the Pacific Ocean in some exotic bay in addition to your family home, don't expect the pension system to pay you anything. That said, the system is surprisingly generous.

"Your home, no matter how much it's worth, is completely exempt from Centrelink's means test system. It needs to be on a block of land less than two hectares, but other rules might apply if you're on a larger block."

How Centrelink asset and income tests really work

A couple can still get a part-pension including the valuable Pensioner Concession Card (see above) with assets up to $1.0745 million under the assets test. Under the income test, combined income could be up to $117,884 a year.

Bruining gets his clients to do a detailed budget in the early days to know what money is required and to work to that.

"A mistake some people make is that they pluck a number out of the air and that can create issues. You might take more income than you need and that could mess up your tax and Centrelink when you didn't need to.

"If you underestimate your income needs, that may force you to sell assets at an inappropriate time. You might be crystallising losses when you didn't need to."

He says understanding how Centrelink works hand in glove with your savings is essential, but most planners don't cover that area.

"It's so complicated, many planners are more interested in managing investments and leave Centrelink for the clients to sort out, which is arguably the most complicated part of it.

Why PRODA access matters when choosing a financial adviser

"There's one question I'd ask any planner you are thinking of using 'Do you have access to PRODA?' It's the professional data access system, the portal used by professionals to interact with Services Australia, including Centrelink. If you get a blank stare, to me that's a problem."

He says the key is to get a solid grounding on how Centrelink interacts with your savings but it is mostly left to you to figure it out yourself.

"Did you know installing a lift in your home to make it retirement ready might boost your super. One of the big ones is putting money into your home, you're effectively moving assets from an area where Centrelink might look, to where they don't look. That can be improving the home and getting it retirement ready.

"At the same time, you are potentially improving its value. You're in effect improving your estate for the kids, so there are lots of wins."

The pros and cons of SMSFs approaching retirement

Bruining says he sees a lot of people that have discovered their self-managed super fund (SMSF) wasn't everything it was made out to be.

"They aren't actually better off. It's costing them more and it's complicated. Inevitably, you have a dominant member of the fund, usually the husband, and if suddenly he has a stroke, the wife has no idea how it works. If you're running an SMSF in the lead-up to retirement, think long and hard about how long you want to do it. We see a lot of people in their seventies who have had enough, and say 'put me back into an industry super fund'.

"We do everything we can in those five years leading up to retirement to clear the debt. That's where things like a transition-to-retirement account-based pension is a very effective tool, you can take 10% of your super balance and whack it off the mortgage.

"Once you get to 60, super withdrawals are completely tax free. Once that's done, if you're still working, you've got the cashflow freed up to inject it back into super, it's very tax effective."

How to reduce risk and simplify super in retirement

He also advises people to check their life insurance and establish whether there is any need for it.

If you paid off the mortgage, cleared all your debts, your children are independent and there's enough to take care of your spouse, should you be paying $4000 a year or more for insurance you don't need?

"Look at your super in terms of risk profile. It's a stage in life where we like to see people strategically back off from the risk of the early years of retirement. If you've had it in high growth and had the benefit of it, it's time to lower the risk.

"Retirees like to keep things pretty simple. They like to know the money's there and going to be coming in and not lose sleep if there's a crash."

He also recommends having two years' worth of expenses parked in your fund's cash option for expenses and the rest in the capital stable option to avoid drawing down on when sharemarket fall.

"If you've made a profit, push the profit across to the cash account to top it up. If the market is hit, sit tight, because it will eventually come back."

Where retirees can find age pension help

Marisa Broome, a certified financial planner and the principal of wealthadvice.com.au agrees there isn't enough help for retirees applying for the age pension.

"There aren't many places they can go if they have a modest amount of money. That's what proposed legislation was meant to do, allow the super funds to give more guidance. The legislation has just been sitting there for two years.

"This is probably my criticism of my own profession. Too many of my peers see advice as only an ongoing scenario, whereas there are times you can see clients as a once off, set them up and they won't have to come back to you.

"Or if they do, it might be only every few years, charging them a fee for service.

"They should be able to access advice as a once-off, not as ongoing advice - and be charged a fee for service when and as necessary rather than on an ongoing basis.

"I like the English system where everyone has access to pension retirement advice. They get so many hours with the service, after that, they find advice if needed. But most people get everything sorted out in those first few meetings.

"We need a service like that. We used to have something like that, a financial information service run by Centrelink, but they're limited in what they can do now."

How to navigate the Centrelink pension process

If you've thrown up your hands in despair while attempting to navigate the eligibility requirements for the age pension, it's a good idea to check whether your super fund helps with the Centrelink application process.

Some of our major super funds have partnered with Retirement Essentials, part of SuperEd, to help members access their age pension entitlements.

Director and co-founder of SuperEd, Jeremy Duffield, says the system's complexity is a primary reason why many retirees struggle or miss out on entitlements.

"The Australian age pension system is definitely a complex social security system. I often joke that only in Australia could we invent government rules so complex and confusing."

Frequently it comes down to information overload. People don't understand how the rules are applied to them and are left in the dark when they fail the means test.

The formal application process itself involves answering hundreds of questions and can deter or confound applicants, and the documentation requirements are found to be overwhelming.

And those who are receiving the pension find it difficult to keep up with the frequent annual changes to rates, thresholds and entitlements - the timing of which can seem unexpected.

Duffield says the age pension is crucially important as the foundational pillar of our retirement system. "It currently provides core funding for about seven out of 10 Australian retirees and more than half of retirement income for more than half of older Australians.

"For a couple, the value of the age pension over a lifetime can be well over $1 million in current dollar terms and more than $750,000 for a single. So it's highly valuable. In addition to the age pension, there's the Pensioner Concession Card, which provides valuable benefits."

"Just because you fail once doesn't mean that you won't be eligible in the future. For instance, many people are still working at 67 and may not qualify until they reduce work income. Others may be working but still qualify for the age pension and don't realise it."

"We believe Australians are missing out big time by too often applying late. There's no backpay on the age pension. The key message to help older Australians is: check your entitlements and don't apply late - there's no backpay on the age pension.

"The consolation prize is the Commonwealth seniors health card, which has no assets test and very high-income limits, so the vast majority of people over 67 would qualify for that. We think it's greatly underappreciated, but there are maybe 700,000 to 900,000 people who are missing out on that," says Duffield.

How the pension is calculated 

The stated intention of the age pension is to support the basic living standards of older Australians. The entitlement is based on a means test with two parts: the income test and the assets test.

To be eligible for any age pension payment, you must successfully pass both tests.

The calculation works under a strict rule: whichever test yields the lower rate of the age pension is the one that Centrelink uses to calculate your fortnightly payments.

Income test

The income test assesses income that's generated from various sources:

• Employment: this includes income from part-time, casual or seasonal work.
• Property and business: rental property income, business incomes or profits.
• Other payments: pensions or social security-style benefits received from other authorities.

Centrelink does not assess the actual income you receive from financial assets such as bank accounts, shares, bonds, loans or super. Instead, it 'deems' the income for the test.

The income-free sweet spot is $218 a fortnight for singles and $380 a fortnight for couples combined. Once you exceed these limits, the pension is reduced by 50c for every dollar over the threshold. These limits are tied to the CPI and indexed each July.

The deeming rates as of September 20, 2025, is 0.75% on assets up to $64,200 for singles and $106,200 for couples, then 2.75% on your financial assets over these thresholds.

The assets test

The assets test assesses both financial and non-financial assets (household goods, car). The limits vary depending on whether the individual or couple owns their home.

Assets that count include money in the bank, super, shares, bonds, investment properties and personal assets above certain limits.

What's excluded?

Your home and the first two hectares of land it's located on are exempt from the assets test. The preferential treatment of the home significantly influences retirement outcomes.

The actual income generated by your financial assets is ignored. Only the deemed income is assessed.

As the table below shows, to be eligible for the maximum age pension, your assets must be less than $321,500 for a single homeowner and $481,500 for a couple combined. Non-homeowners get a further $258,000 under the assets test.

Maximum payments for singles and couples

The thresholds for receiving the full age pension are often referred to as the sweet spot. If assets or income exceed these full pension thresholds, the payment starts reducing:
• For income: pension reduces by $0.50 for every $1 earned over the threshold.
• For assets: pension reduces by $3 for every $1000 by which the assets exceed the threshold.

"We find most people start out with a part age pension. Over time, their age pension increases as they spend down their super or stop working," says Duffield.

"I like to say the age pension gets better with age: more people qualify as they stop working and they're eligible for more as their other assets decline, and the age pension keeps increasing with inflation, which can't be said for many things.

Keeping track of entitlements is critical because the Australian government updates the age pension means tests three times a year.

"It's also the responsibility of the pensioner to update their financial information if there are any changes.

"This frequency of change makes it essential to stay informed to ensure you receive all your entitlements. That's one of the reasons Retirement Essentials age pension eligibility checker is so frequently used," says Duffield.

What about the work bonus?

The Australian retirement system provides a specific incentive for pensioners to work, known as the work bonus, which allows them to keep more of their pension.

• Exemption: the first $300 of fortnightly income from employment is completely exempted under the pension income test.
• Income bank: if a pensioner does not use the full $300 fortnightly exemption, the unused amount is accrued in a work bonus income bank.
• Maximum balance: since January 1, 2024, the maximum income bank balance was permanently increased to $11,800 for all eligible age pensioners under the bonus scheme.

Can retirees get help from their super funds?

Duffield says retirees can and should look to their super funds for help, in particular regarding transitioning into retirement and maximising government benefits.

"As more than half of older Australians get more than half their retirement income from the age pension, it's a natural fit for funds to help their members with it as part of their program of retirement services.

"In a survey we did in 2022, 79% of older people said they wanted help with the age pension and 70% said they wanted help from their super fund," he says.

How much do you need to retire?

People are often vague when asked to identify their annual expenses and the income they need to cover it.

Without that basic information it's impossible to draw up a realistic budget and keep track of spending.

It's less of a problem when you're working and have a regular salary coming in. Once that stops, it's a different matter. It's at that point that many retirees start to worry about their savings and whether there's enough to support their lifestyle.

The only way to establish whether you're set up for the retirement of your dreams is to identify all your outgoings.

Then you will be able to establish how much annual income you will need and whether it's sustainable throughout your retirement years. Keep in mind that things you might have spent money on while working may no longer apply once you're out of the workforce.

Where to start

A good starting point is the Association of Superannuation Funds of Australia's (ASFA), which shows the minimum annual expenditure for a comfortable, modest or age pension retirement for couples and singles, homeowners and renters, for those in the 65 to 84 age bracket.

ASFA gives a weekly breakdown of expenses to show how these figures are derived and it's a useful reference when drawing up a budget.

ASFA's September 2025 figures show that the minimum annual expenditure for a comfortable lifestyle in retirement is $54,240pa for homeowner singles and $76,505pa for a homeowner couple.

ASFA also gives the super balances required to generate the income needed for the different groups. For instance, 
the super balance required to achieve a comfortable retirement at age 67 is $690,000 for a homeowner couple and $595,000 for homeowner singles.

If you have missed out on the age pension, don't despair, there's one coveted benefit you may still be eligible for. It's the Commonwealth seniors health card. There are three basic tests: age, residency and income. Crucially, there's no assets test, and the income test it applies is generous with couples earning up to $161,768 a year being eligible for the card.

Eligibility requirements

1. Age: you must be at least 67 years old.
2. Residency: you must meet residence requirements and generally not be receiving a payment from Centrelink or the Department of Veterans' Affairs.
3. Income test: your annual adjusted taxable income must be less than the following thresholds: $101,105 for singles and $161,768 for couples. The limit is even higher for couples separated by illness at $202,210.

The income assessment includes your taxable income including foreign income and only a deemed amount from your account-based pensions. Significantly, other financial assets, such as shares, money in the bank and super in accumulation phase are completely exempt from this test.

It it worth getting?

It is considered well worth the effort. It is conservatively estimated that the discounts might add up to $2000-$3000 a year, says SuperEd's Jeremy Duffield.

Top benefits include:

• Cheaper medical costs. Access to cheaper prescription medicine via the pharmaceutical benefits scheme and larger refunds once the Medicare safety net is reached.
• Healthcare subsidies. Free or lower rates on other healthcare expenses, such as ambulance services, eye check-ups, hearing and dental care.
• State-based discounts. Discounts on household expenses such as water and property rates in some States (for example, up to 50% rebate on water charges in WA).
• Energy and transport. Discounts on electricity and gas bills (seniors energy rebates) and metropolitan/regional travel discounts.

Australians missed out on up to $13.5 billion in tax-free investment returns between 2017 and 2025 by not transitioning their super to the retirement phase when they became eligible, HESTA says.

HESTA's latest whitepaper Make the move: guiding members to tax-free retirement found last financial year 1.8 million Australians remained in the accumulation phase despite being eligible to switch, collectively forgoing $2.5 billion.

By 2030, nearly three million Australians are projected to be missing out on $5.5 billion annually.

"Retirement should be a time when Australians can enjoy the rewards of a lifetime of work. Yet too many Australians are not making the move from saving for retirement to actually living in retirement - and the cost of that inaction is significant," says HESTA chief executive Debby Blakey.

"Without reform, the problem will only grow. We need system-level change to make it easier for people to access tax-free income in retirement."

The research shows all member groups irrespective of their balance, gender, homeownership, or marital status would benefit from transitioning to retirement products at eligibility.

"The research finds every eligible member cohort analysed is better off when they have access to a retirement phase option rather than staying in accumulation," Blakey says.

"That's why we're calling for a well-designed default mechanism that would seek to ensure no Australian is left behind simply because the system failed to guide them."

The whitepaper also noted the consequences are not felt equally, with women being disproportionately affected.

Female HESTA members have a take-up rate of 29%, while for all eligible members it sits at 30%. The take-up rate for the super system is 45%.

"Women who have spent their careers caring for others often retire with more modest balances - and they are precisely the members least likely to make this transition on their own," Blakey says.

By transitioning to a retirement income stream upon eligibility, members could boost total retirement income by up to 12% depending on their circumstances, compared to those who delay by four years, the whitepaper found.

In its 2026-27 pre-budget submission, HESTA has called for funds to be given the ability to actively prompt members to transition to appropriate specific fund retirement products, with the ability to opt-out.

It also called to allow default transition for eligible members into a retirement income stream, with an opt-out option for consumer protection.

Separately, Blakey will be leaving the fund later this year, opting to step down after 11 years at the helm. HESTA is now searching for Blakey's replacement and expects to announce a new chief executive ahead of her departure.

This article first appeared on Financial Standard

Minister for Financial Services Daniel Mulino said the reforms improve transparency, reduce uncertainty, and strengthen the enforcement of court-ordered compensation for victim-survivors.

Mulino said if passed - which is expected - the Survivors Law will enable victims and survivors of child sexual abuse to apply for a court order to access additional personal or salary sacrifice superannuation contributions made by the offender where a related court order for compensation remains unpaid after 12 months.

As the Bill currently reads, victim-survivors can only seek to receive the unpaid, law enforced, compensation from additional contributions the perpetrator made from a period of 10 years prior to the day the abuse initiated (or the estimated date the court agrees the abuse occurred) until the day the compensation order is made.

Employer mandated contributions, whether paid at the legislated minimum or at a higher rate as negotiated as part of an industrial agreement or award are exempt from the reforms.

"This is because the intention is to prevent misuse of superannuation to shield the assets of perpetrators from their victims or survivors," the explanatory memorandum reads.

"Certain other types of contributions are specifically excluded from eligibility to ensure that only amounts that are made to deliberately shield assets from compensation are eligible."

Victim-survivors will be able to apply to the Australian Taxation Office (ATO), with appropriate safeguards, to identify any potential eligible superannuation prior to seeking access.

Should a perpetrator have made voluntary contributions in an attempt to hide their assets but then removed the additions contributions before the compensation order is made, victim-survivors will also be given information as to the perpetrator's total superannuation balance, along with total amount of additional contributions made.

This does not mean the victim has access to the total superannuation assets, it is just for them to judge whether extra contributions were removed, making it no longer worthwhile for them to see compensation from those additional contributions.

Unfulfilled historical compensation orders brought into existence before the measure's commencement will be eligible if they remain legally enforceable and were awarded in relation to a criminal conviction or finding of guilt for child sexual abuse.

The reforms also include amendments to the Bankruptcy Act 1966 to allow compensation debts to survive an offender's bankruptcy.

Mulino said the government is committed to ensuring these reforms operate as intended and deliver meaningful outcomes.

Accordingly, the operation of the law will be reviewed after full commencement to assess its effectiveness for victim-survivors.

"We have listened to the survivors and advocates who have a been calling for strong accountability and justice for a long time," Mulino said.

"The Albanese Government will establish the principle that convicted perpetrators cannot use the superannuation system to shield assets from lawful compensation orders.

"This Bill represents a meaningful step forward for survivors of child sexual abuse. When passed, this Bill will establish a foundation that can be built on in the future on as we continue to look for opportunities to improve outcomes, and attain justice, for survivors."

Attorney-General Michelle Rowland said the government was committed to holding perpetrators of abhorrent child sexual abuse to account.

"There can be no opportunity for criminals who are convicted of child sexual abuse to avoid paying compensation to their victims, and I look forward to this vital legislation delivering exactly that," Rowland said.

"My message to victim-survivors is clear - we hear you, and we have your back."

This article first appeared on Financial Standard

Reader question

Dear Paul,

I have been mulling over my superannuation options as a New Zealander.

Initially I set myself up with an industry superannuation scheme through work, but when I move my KiwiSaver superannuation over to Australia I am limited to a handful of funds.

What are your thoughts on the funds that are available here, bearing in mind that I'm a 52-year-old mother of two teenagers with a 63-year-old husband. Your ideas would be most appreciated. - L

Paul's response

I learn from our readers on a very regular basis, and you have taught me something here. I had no idea that you could move KiwiSaver to Australia, let alone that only a few funds would accept KiwiSaver transfers.

Your information interested me, so I have chatted to some experts and I find, as you already know, that we have a Trans Tasman Portability Scheme, which sounds very grand.

The funds can't go to a self-managed super fund, you need to contact an 'accepting' fund to get a compliance letter and complete the Trans Tasman Portability Scheme form.

You also can't transfer in excess of the non-concessional contributions cap, but that is a pretty large amount, $120,000 a year or $360,000 over three years.

The funds you are limited to give you plenty of choice. I see First Super, an industry fund, is one of these accepting funds. There are quite a few funds you can use, but First Super is well regarded and offers a range of low-cost investment options.

As a large fund, I suspect they will have had plenty of experience to assist with the transfer.

I don't want to lump all super funds in the same basket, but as long as they are a large, low-cost fund, you are off to a good start.

Frankly, if you are going for a balanced or growth-type fund, any high-quality, large super manager will hold similar assets and give you similar returns.

The next bit is customer service and, here, your initial phone call and their follow-up will demonstrate their service standards. Maybe start by giving them a call.

What to read next

• The hidden tax perks that boost your super balance
• How much super you need for a comfortable retirement now
• Here's how to get free advice from your super fund
• Ask Paul: Volatile world events have me worried about my super
• Retiring overseas from Australia in 2026: Your how-to guide

In November last year, the US National Bureau of Economic Research released a study that forces a major rethink of the true cost of war - and how it flows through to household budgets, investments and pension.

Built on data collected from more than 100 geopolitical conflicts, civil wars and interstate wars, dating back since 1950, the study found that, following a military conflict, real GDP of the affected country fell 13% on average with no recovery even after a decade. That translates to tens of billions of dollars lost, businesses collapsed and the domestic credit sector (home loans and business loans) squeezed.

But what if you're caught in the economic crossfire?

Less than a month since the US-Israel-Iran conflict began, Australia is feeling the effects in the form of higher petrol prices, wild market swings and general anxiety about what lies ahead.

With so much uncertainty, now is a good time to stress-test your financial plans or goals, without the panic or the hype. Here are the things you need to know to better navigate the impact of the Middle East conflict on your savings, investments and super in the short-term and beyond.

What is happening on the ASX?

The ASX 200 index, which is considered the main barometer of the health of the Australian sharemarket, has been on a rollercoaster ride in the past month.

It hit 9200 points on March 1, lost 2.85% in value nine days later for paper losses totalling $90 billion, before recovering 1.1% of that a day later and falling 1.3% two days later. Overall, from March 1 to 12, it fell 6%, wiping out more than $180 billion of its value in a fortnight.

Is it time to sell? Or is it time for an opportunistic buy while the index is down?

Alex Jamieson, financial adviser and founder of Jamieson Private Wealth, says this kind of market turbulence is normal given the climate.

"Historically, markets tend to fall around 7% in the initial weeks after a geopolitical shock, but after a year, average returns have often been around 17 to 18%," he says.

"Your flight-or-fight instinct tells you to go to cash, but history shows that investors who hold their nerve are usually rewarded over the following 12 months."

Should investors change their portfolios because of the war?

Australian investors face a different set of challenges to their US, European and Asian counterparts for a host of reasons. For one, Australians are exposed to the impact of rising oil prices, not just through privately-held shares but also through superannuation.

Unlike global market indices, the Australian indices are heavily exposed to banks and mining, with very little direct exposure to defence and security. That means that on one hand, local investors get the full brunt of the downside, but not the potential upside of cyclical stocks like those in defence and security going up in value.

"Defence isn't always about being aggressive. For many countries, it's about protecting their population," he says.

"For those who want exposure without picking individual defence stocks, ETFs are the simplest way to do it. VanEck's global defence ETF, BetaShares' defence fund, and Global X's defence technology ETF, are a few of the options available. They give you diversified exposure to the sector, rather than relying on one company or one contract."

However, the smarter trade would have been six months ago, not now when most of the defence stocks have already had a good run.

"You don't want to be buying stocks when everyone is euphoric. You want to wait for the market to normalise and give you a better entry point."

What if I'm worried about my super?

Superannuation, which falls under the bucket of long-term savings, is invested heavily in both local and global equities, government bonds and unlisted assets.

In this scenario, Stephen Miller, market analyst at fund manager GSFM, says that it depends on your life stage.

"I wouldn't get obsessed with one bad month. Tough months are inevitable, and what matters more is how much risk you actually want in your portfolio. If you're young, you can afford to lean more aggressively toward equities. If you're older, diversification becomes even more important."

Retirees and pensioners need to compare the current market losses to returns over the mid to long term. "Super returns will look pretty awful this month, but view that in context: we've had a couple of very good years."

It may be a good time to check your investment option though.

"If you are concerned about your super, it's likely that your investment option is not aligned with your risk profile. In 12 months' time - not now - you should consider retesting your risk profile to determine whether your behaviour and tolerance toward market movements have changed," says Jamieson.

What is happening with oil prices?

The market is divided on the price of oil by the year-end. There are forecasts that the oil price will be around USD$65 per barrel by Christmas, so over the course of the year, oil prices should fall back to more normal levels. As a rule of thumb, approximately USD$70 per barrel is considered the long-term average.

Miller, however, is making investment decisions on the assumption that oil prices will remain under pressure.

"I'm skeptical that oil drops quickly back to the mid-$60s. Even if nothing else happens, a risk premium is likely to remain. When I'm thinking about portfolio construction, I'm planning for oil closer to US$80 a barrel."

How will the conflict affect inflation and interest rates?

Crunch time is March 17, when the Reserve Bank makes its interest rate announcement.

Before the war broke, the consensus was a hold this month and a rate hike in May, but that has since changed.

Big banks NAB, Westpac and Commonwealth Bank have revised their forecasts from 'unchanged' to 'increase'. ANZ is still saying 'hold' although 70% of the market consensus is on a rate increase, as at this week.

"To be honest, if you'd asked me a week or two ago, I would have said, 'I don't think there's going to be one in March. Now, I do think there's going to be one in March and there might be furthermore to come even after that," says Miller.

While most people know that super helps you save for retirement, many are unaware of the hidden tax advantages that can significantly boost your long-term savings and reduce your lifetime tax bill.

Understanding these tax benefits, and how to use them to your advantage, could be the difference between retiring comfortably and struggling to make ends meet.

Tax professionals often note that super remains one of the most underutilised tax planning tools available to everyday Australians.

Here's what you need to know to maximise the tax benefits of super and give your retirement savings a meaningful boost.

1. Super contributions are tax-efficient

One of superannuation's biggest tax advantages lies in how contributions are taxed compared with standard income tax.

a. Concessional contributions taxed at just 15%

Contributions made from your before-tax pay, including employer contributions under the Super Guarantee and salary sacrifice contributions, are typically taxed at a flat 15% rate inside your super fund. For many Australians, this is substantially lower than their personal marginal tax rate, which can be 19%, 32.5%, 37%or higher.

That means every dollar you divert into super via salary sacrifice not only grows in your super balance but also arrives there taxed more favourably than if it stayed in your take-home pay. For higher-income earners, the difference between a 15% super tax and a 37% marginal tax rate can add up to significant savings over time.

It's one of the most common strategies tax agents discuss during tax time, particularly with clients looking to legally reduce their taxable income while strengthening their retirement position.

b. Non-concessional contributions avoid tax altogether

If you contribute money to super from your after-tax income, known as non-concessional contributions, those contributions are not taxed again inside the fund. As long as you stay within annual caps, this can be a powerful way to boost retirement savings without incurring extra tax.

These tax-efficient contribution rules are a cornerstone of smart retirement planning, especially for workers in higher tax brackets who want to lower their overall lifetime tax burden while accelerating their super growth.

2. Your super fund's investment earnings are tax favoured

Once your contributions are in your super fund, they are invested in various assets such as shares, bonds, property and cash to grow your balance over time. The tax treatment of these earnings is another area where super delivers advantages.

Inside the accumulation phase, before you start a pension, investment earnings including interest, dividends and capital gains are taxed at a maximum of 15%. That includes concessional tax treatment of capital gains, which is often reduced to an effective rate as low as 10% for assets held longer than a year.

Compare this with investment earnings held outside super, where returns may be taxed at your full marginal rate, and the advantage becomes clear. Your super balance can compound faster thanks to lower tax drag.

Even better, once you transition to retirement and your super enters the pension phase, investment earnings are generally tax-free. As advisers frequently point out, careful timing of pension commencement can make a material difference to long-term outcomes.

3. Withdrawals are tax-free after age 60

Perhaps the most appealing hidden tax benefit of super is that once you reach your preservation age and meet a condition of release, super withdrawals, either lump sums or income streams, are generally tax-free if you are 60 or older.

This stands in stark contrast to other savings held outside super, where selling assets or drawing down investment income could trigger capital gains tax or income tax at your marginal rate. With super, you have effectively paid tax at concessional rates during the contribution and accumulation phases and can access funds tax-free in retirement.

For many retirees reviewing their strategy each financial year, firms often assist in modelling different drawdown scenarios to ensure withdrawals are structured tax-effectively.

4. Carry-forward concessional caps and low-income offsets

Some lesser-known tax rules can help boost your super even further.

a. Catch up your concessional caps

If your super balance is below certain thresholds, you may be able to carry forward unused concessional contribution caps for up to five years. That lets you make larger tax-efficient top-ups in years where you have excess cash flow.

b. Low Income Super Tax Offset

If you earn below a certain threshold, you may be eligible for the Low Income Super Tax Offset (LISTO), where the government effectively refunds some or all of the 15% contributions tax back into your super account.

These rules can be complex and eligibility can change. That is why many Australians choose to confirm their contribution history and cap position with a registered tax agent, particularly when making larger top-ups.

5. Smart tax planning can maximise compounding

Perhaps the biggest secret about tax and super is that when you put money in can be just as important as how much you contribute. Because tax inside super is lower than most people's marginal rates, contributing earlier, especially during peak earning years, can significantly amplify long-term growth.

Salary sacrificing while your income is higher not only reduces your current tax bill but also means those additional contributions benefit from years of compounding inside a tax-favoured environment.

Over a working life, this can result in a materially larger retirement balance compared with investing outside super and paying higher tax rates each year.

6. Do not ignore the rules - get advice

Super tax benefits come with caps and limits. Exceed contribution caps and you may face additional tax. High-income earners may be subject to Division 293 tax, and future policy changes could affect very large balances.

Given how technical the rules can be, many Australians seek guidance from a financial planner or a registered tax agent. Groups such as H&R Block regularly see clients unintentionally breach caps simply because they were unaware of how different contributions interact across multiple funds or employers.

Super is not just savings, it is a tax-smart strategy

When you look closely at the tax mechanics of superannuation, it is clear the system is not just about saving. It is about saving strategically. From concessional tax rates on contributions and earnings to tax-free access in retirement, super provides some of the most advantageous tax outcomes available to Australians.

By understanding and making the most of these benefits, you can significantly enhance your retirement savings and improve your long-term financial security.

If you are considering strategies such as salary sacrifice, catch-up contributions or transitioning to pension phase, taking the time to review your position with a qualified adviser or tax professional can help ensure you are maximising the rules rather than accidentally breaching them. Your future self will thank you.

Isn't that what super is for?

The super system was legislated in 1992, requiring employers to put aside 3% of employees' wages in super.

While that's a long time in dog years, it's not that substantial for savings that are set aside throughout your working life for your retirement.

Since it started, compulsory employer contributions have steadily grown to 12% and the total super pool to more than $4.3 trillion.

But here's the rub.

For much of its existence, the super system has been focused on building savings for retirement, not on what happens when you get there. In 2022 the government introduced a retirement income covenant, which is effectively a legal obligation on funds to help members maximise their expected retirement income.

And while there have been some improvements, it hasn't been a roaring success.

With the Baby Boomers moving en masse towards retirement, and Gen X following in their wake, the total number of Australians aged 67 or older is expected to roughly double to about 9 million by 2062-63.

About 2.5 million Australians are expected to retire in the next decade alone. And if the super system is to do its job, these people will need secure retirement incomes.

Incomes are our weakness

The 2025 Mercer CFA Institute Global Pension Index ranked Australia as a B+ in its last issue, with us slipping behind Singapore and Sweden for our lowest ranking ever.

The problem?

While we score well for the sustainability and integrity of our system, we fall short when it comes to adequacy of retirement incomes. The tough means test on the age pension is part of the reasoning, but we don't do well when it comes to providing retirement incomes either.

As Mercer Australia Partner Tim Jenkins and global pension expert David Knox write: "It is not a retirement income or pension system. There are no requirements for superannuation fund members to withdraw any part of their superannuation when they retire.

This is in stark contrast to the best pension systems in the world that require most or all of the accumulated benefits to be withdrawn on a regular basis."

They point out that Canada generally requires pension payments to start by the end of the calendar year in which an individual turns 71.

In the UK, an individual can normally make withdrawals from their pension between the ages of 55 and 75. If no withdrawals are made by age 75, a 'benefit crystallisation event' occurs.

In the US, there are required minimum distributions from age 73.

"These requirements mean funds are used to provide retirement income and not for estate planning or intergenerational wealth transfers," Jenkins and Knox write.

"This income-based approach would also limit the growth of superannuation balances during retirement."

Australian retirement incomes

With a 'whatever goes' regulatory approach to retirement incomes in Australia, we see extremes from people withdrawing all their super in one hit to hoarding it for future generations.

This is in contrast to many other countries (see breakout, opposite) that require part or all of the benefit to be taken as a retirement income.

Last June, according to Jenkins and Knox, there were more than 850,000 MySuper accounts for Australians aged 65 or older with an average balance of $116,000. While some of these people might still be working, many will have retired but have not moved their savings to the pension phase, where there is a requirement for a minimum amount to be withdrawn every year.

They say some had little engagement with their super and may not be receiving income that could make a real difference to their standard of living.

"The introduction of an income requirement, together with a moderation of the assets test, would improve the retirement income for many older Australians and improve Australia's ranking," they write.

Did you know?

Australia's superannuation system is one of the largest private pension systems in the world. More than 1.5 million member accounts are in the retirement phase, collectively accounting for approximately $575 billion in member assets.

Best-case scenario

A focus on retirement incomes would put further pressure on the industry to develop better pension products that give retirees security and a decent income.

Worst-case scenario

For many investors, decisions about how and when they take their retirement savings is a personal choice. A reported draft proposal to mandate a drawdown rate for super accounts worth more than $200,000 last year showed that any changes would need to take account of this need for flexibility.

The wild card

Market downturns have a disproportionate impact on retirees who are not in a position to contribute to their fund and wait for better returns.

The cost of a comfortable retirement for homeowners at age 67 has reached a record high, according to the latest quarterly Retirement Standard from the Association of Superannuation Funds of Australia (ASFA).

A comfortable retirement super balance is now $630,000 for singles, up from $595,000. Couples would need a super balance of $730,000, up from $690,000.

On an annual basis, homeowners aged 65 and over now need $77,375 for a comfortable retirement as a couple, and $54,840 for a single.

The lump sums required for a modest retirement have also increased to $110,000 for singles and $120,000 for couples, up from the previous $100,000 for both groups.

Why are retirement costs rising?

ASFA attributed the rise to the age pension not being able to keep pace with retirees' cost of living.

"Retirees' living costs have risen, and support from the age pension has not kept pace with this rise. This means retirees need higher super savings to maintain a comfortable lifestyle," says ASFA chief executive Mary Delahunty.

"Costs in the categories that retirees tend to spend most on have risen faster than general consumer price inflation. So that means even though the age pension is indexed, a greater burden is placed on retirees' personal super savings."

What role do deeming rates play?

The other major factor, ASFA noted, has been the recent increase in deeming rates, the assumed rates of return applied to financial assets when assessing age pension eligibility.

Last week, minister for social services Tanya Plibersek, announced a rise in the lower deeming rate to 1.25% for financial assets under $64,200 for singles and $106,200 for couples. The upper rate will rise to 3.25% for assets over the same thresholds.

"When deeming rates rise, a person's assessed income can increase even if their actual investment returns have not, which can reduce their age pension. This shifts more of a retiree's budget towards reliance on super rather than Centrelink," says Delahunty.

Is there any good news for future retirees?

While Delahunty says the rise in the lump sum amount reflects greater pressures from living expenses on retirees' super savings, the overall picture for retirement outcomes is positive.

She noted Australia's super system continues to generate superior returns on investments for its members.

"The good news is that Australians are reaching retirement with larger super balances than ever before. The super system is working really well, securing Australians' retirements."

A 30-year-old worker with $30,000 in super today and earning $80,000 throughout their career adjusted for inflation is on track to retire with $645,000.

"That's because super funds have delivered exceptional returns in the last few years. The average balanced fund returned 9.9% in 2023, 11.4% in 2024, and 9.3% in 2025. That's cumulative growth of nearly 35% over three years, well ahead of inflation," Delahunty says.

The Superannuation Guarantee has also risen steadily since 2020 and is now at 12%.

This article first appeared on Financial Standard

Australian super funds now have around $500 billion invested in private assets, including infrastructure projects, office buildings, private companies, and private loans.

These are not assets you can easily buy or sell on a stock exchange. In many super "Balanced" options, private investments make up between 10 and 30% of the portfolio, with the largest funds at the higher end. Yet, 20 years ago, super was mostly listed shares and bonds you could price instantly. Today, private assets play a much larger role.

Unlike shares, private assets do not trade daily. Their values are estimated using models or external assessments and updated periodically. So, when markets swing sharply, listed shares move immediately, but private investments often appear smoother on paper, even as underlying conditions weaken.

Regulators have taken notice. The Australian Securities and Investments Commission has raised concerns about inconsistent valuations and disclosure standards.

During COVID and the recent commercial property downturn, losses in private assets existed before they showed up in member statements.

There is also the issue of liquidity. You can switch super options daily, but infrastructure projects and large buildings cannot be sold quickly without significant losses. In stressed markets, that gap matters.

Now, there's another layer: the recent CFMEU controversy. The Construction, Forestry and Maritime Employees Union has faced allegations relating to misuse of influence and governance failures linked to major infrastructure projects.

If cost blowouts or governance issues affected project economics, and super funds invested at inflated valuations, members could ultimately bear the impact. Think about it: if assets were purchased at premiums that do not reflect their true economic value, what happens when they are eventually repriced?

This is not the first time super funds have been exposed to private market risks. Cases such as Shield Master Fund and First Guardian Master Fund show how complex structures and weak oversight can lead to significant losses. The takeaway is not panic; it's awareness.

Do not assume your super is automatically safe because the chart looks smooth.

Check where your money is invested. Understand how much is allocated to private assets, and if your fund allows, consider whether a self-directed option provides greater transparency and control, because sometimes the real risk is not what you can see, it's what you can't.

What are the best and worst-performing sectors this week?

The best-performing sectors include Information Technology, up more than 9%, followed by Energy, up more than 4% and Communication Services, up more than 3%. The worst-performing sectors include Real Estate, down slightly under 1%, followed by Consumer Discretionary and Utilities, both up less than half a per cent.

The best performing stocks in the ASX top 100 include HUB24 Limited, up more than 28%, followed by Netwealth Group, up more than 25% and Technology One, up more than 22%. The worst-performing stocks include Treasury Wines Estate, down more than 9%; followed by Whitehaven Coal, down more than 6% and IGO Limited, down more than 5%.

What's next for the Australian stock market? 

The All-Ordinaries Index has seen buyers firmly in control this week, closing up just under 2% on Thursday. Strength continued from the heavyweights, including the banks and Materials sector, but it was Technology that stole the spotlight, surging 9% for the week.

Encouragingly, every sector except Real Estate finished in the green, signalling a broad-based rally on growing investor confidence.

Technically, a major moment is unfolding.

For weeks, we've highlighted the significance of the 9300 level as the key barrier standing between the market and a potential new all-time high. Yesterday, the index closed at 9316, which is a strong statement, but not confirmation just yet.

On recent attempts to break higher, Friday saw sellers step in and reject the move, making today critical. If buyers can defend the 9300 level into the close, it could mark the launchpad for the next bullish phase heading into the second half of the year.

For now, discipline remains key during reporting season.

Focus on stocks with strong momentum, backed by solid fundamentals, and sidestep earnings landmines. If 9300 holds, trend opportunities could accelerate quickly.

I have friends who can't face retiring. It isn't because they don't have enough superannuation to live on.

They can't seem to get their heads around going from a busy life to an easy life.

They worry they will be bored or irrelevant without a job.

Why some Australians fear retirement

I understand 'retirement' is complex and deeply personal. It is a huge leap into the unknown.

Some people fear the end of employer payments.

They worry about running out of money because they don't know how long they are going to live, how much they will spend on their health as they age or whether they will need to pay for aged care.

Rollercoaster markets and high inflation keep them checking their superannuation balance constantly.

Some delay leaving work because they are worried about their struggling adult children.

Superannuation and retirement plans are being hijacked to help their 20- and 30-year-olds with housing and other living expenses. Nest eggs are likely pushing up house prices.

I know people in their late sixties and mid-seventies still working and deriding people who have retired. I understand.

Their work ethic is entrenched but I am surprised that they can't transfer it to other more nurturing activities. Or at least try working part-time.

Often these workaholics are exhausted, frustrated and angry about a heavy workload, a toxic workplace and younger people who may want them out the door.

I have one friend who went into an office where no-one spoke to him for the last couple of years before he was retrenched.

I advise these reluctant retirees not to die at their desk. Retirement is the time to spend what they have saved in their superannuation and other investments and have fun. Go slow instead of fast.

"If only I could afford to retire," one always says, but I know that he can. He loves decent holidays and lots of eating out. He has the means to retire in style and budget for these but somehow can't understand how it works.

Australians are dying rich 

People fear they will spend too much but the reality is that retirees underspend and end up dying with a significant balance 
of their superannuation unspent.

My parents worried obsessively about money in their old age and didn't understand that they could have comfortably spent more than they did.

People can be unlucky with their health. I know two people in the past year who were diagnosed with advanced cancer shortly after they retired.

They died in their first year of retirement. They never got to travel extensively, spend more time with grandchildren and pursue their passions. Their partners had been hanging out for their retirement years.

I realise that my friends don't have a plan to withdraw their savings after putting money away in superannuation for decades. 
It is important and straightforward to organise an income for retirement through an account-based pension.

It will keep earning a return, just as their superannuation did, and it is typically a lot more than bank account interest rates.

One strategy to acclimatise to retirement is to wind back your working hours and set up a transition-to-retirement (TTR) income stream once you reach 60 or older.

It allows you not to reduce your income but work less. You are taxed at 15% on your investment returns on your TTR, lower than your income. Your superannuation balance reduces but you can redirect more of your salary into your super fund to top it up if you want.

I realise that some of my friends have preferred to invest in property rather than superannuation.

While their properties have rocketed up in value, the income yield from their property - often eaten up in the cost of maintenance, land tax, vacancy periods when the tenant turns over - is low.

This means they keep working because their property income doesn't provide enough to live on, and they can't gradually liquidate a property.

What's more, they pay tax on the rental income because investments outside of superannuation are taxed.

Alternatively, once you reach age 60 and retire, you can start to withdraw your super as a tax-free income stream.

How to set up an income from your superannuation 

It goes like this: if a person has $1 million in superannuation and other investments across a range of asset classes, a conservative estimate of the return is 6%, so that before withdrawal, the assets would grow to $1,060,000 over a year.

If they draw down the minimum from their account-based pension of 4%, equivalent to $40,000, their balance would still increase to $1,020,000.

Unless they are drawing down more than their earnings, the asset base may slightly increase and so will the dollar amount of their 4% drawdown. This provides some offset to increases in the cost of living.

Superannuation funds have had strong returns over the past few years, with the median growth fund returning 10.5% for 2024-25 financial year after fees and tax, according to Chant West.

Over 10 years the median growth fund returned 7.2% per annum. One million dollars would have been yielding returns of $72,000 per annum so retirees would have a higher income than the conservative 4% rule.

On average, Australians retire with a lot less than $1 million: men aged 60 to 64 have $402,000 and women have a lot less with $300,300, according to Deloitte average balances. People qualify for a partial age pension with these balances and as their assets run down over the years, their age pension payment rises.

These retirees are bouncing on the safety net but still can achieve the Association of Superannuation Funds 
of Australia's (ASFA) modest living standard in retirement.

To get beyond the age pension, you may have to contribute to super via salary sacrifice, depending on how much you have in your fund.

Downsizing to boost super

One friend is considering downsizing to boost her super.

While it is called a downsizer payment, you can upscale your home and buy a bigger house in a different area that 
is cheaper. The aim is to unlock some funds that you can place into your superannuation to boost the balance.

If you've owned a principal home for 10 years or more, are 55 or older, you may be eligible to make a downsizer contribution of up to $300,000 per person, separately (up to $600,000 for a couple) from the sale of your home.

But do your research well as plenty of downsizers run into more expenses and headaches than they anticipated. You want to make sure it helps with retirement, rather than making you stay at work longer.

It's hard to ignore headlines on stockmarket volatility. But with the silly season behind us, and much of 2026 unknown, it's worth remembering that super is a long-term investment, and trying to pick market highs and lows is a mug's game.

Despite three major sharemarket downturns, since the introduction of compulsory super in July 1992, the median super growth fund has returned 8% a year, according to research conducted by Chant West.

In other words, ride out the lows and your super will do its job and produce solid gains over the long term. What then should you keep in mind when markets are rattled by economic and geopolitical uncertainty?

Why market volatility doesn't mean you should switch to cash

General manager of guidance and advice at Aware Super, Peter Hogg, says his fund often hears from members when they are spooked by volatile markets, and the impact it is having on their super balance.

"Our response is that the best course of action is to focus on your long-term goals and stick to your long-term strategy.

"It's important to keep in mind that market volatility is a normal part of investing."

How long-term super returns weather market turbulence

Hogg says it's common for investors to react to different pieces of news or events and try to gauge its impact on the value of their investments.

"History shows us that markets tend to recover and rise again. At Aware Super, we take a long-term view and focus on building a diversified portfolio designed to ride out short-term volatility and grow members' savings over the long term.

"So it's important that members in accumulation, as well as those nearing or in retirement, don't panic and have knee-jerk reactions, and seek advice before making any changes when markets are volatile.

"If you are spooked and switch to cash after a market fall, you risk locking in losses and not benefiting when markets rise again. Short-term volatility typically has little impact on long-term returns, but switching can have a negative effect on a member's final balance," says Hogg.

What happens when you switch to cash at the wrong time?

During the global financial crisis of 2007-09, growth funds dropped by about 26% on average. Those who panicked, especially retirees, and switched into their fund's cash option, faced long-term, negative consequences.

Hogg says the GFC highlighted the importance of staying invested and being in a diversified option. He says most of his fund's 1.15 million members are invested in diversified options.

"This means their money is not just invested in shares, it's spread across other investments like property, infrastructure, cash and bonds. Consequently, when sharemarkets fall, the fall in their balance typically won't be as large as those in sharemarkets."

Ultimately, his message is that a rational approach will beat a panicky, emotional one that's driven by the pain of financial losses.

"Our research found that about a third of members who switched to cash in a market downturn missed the rebound when they eventually returned to their strategy.

"If you do start to feel panicked, try to remember to stay calm and that market volatility is a normal part of investing. Also remember your super is a long-term investment and often sticking to your long-term plan can be the best approach."

So switching out of your diversified portfolio to the 'safety' of cash and then jumping back in at some later date can be costly.

"Changing your long-term strategy can have a negative impact on your final balance," he says.

Aware Super's graphs show the impact on members' balances of switching their $100,000 investment to cash following the COVID-19 market falls, from the beginning of 2020 until June 2025.

Members in its Future Saver High Growth option would have been worse off by $47,481 by switching to cash while those in the fund's Retirement Income Conservative Balanced option would be $29,776 worse off over this period.

Five questions to ask before changing your super investment option

Hogg says Aware Super encourages members to contact them via their app or to call before making any changes.

"We ask our members a few important questions to make sure those changes are aligned with your personal circumstances and retirement goals."

1. The first question is what's your investment timeframe and the future impact of making a change. As super is a long-term investment, any investment options or changes you make today can have a big impact on the balance you retire with.
2. If you invest too conservatively, it can be risky because over the long term your investment may not earn a return above the inflation rate. If your super grows at a rate lower than inflation, you could be losing money without realising it.
3. Second, is this the right time to change investment options? If you switch your investments after a share market fall, you could be selling at a low price and locking in a loss - markets are hard to predict.
4. If you switch into a lower risk option when markets fall and don't switch back until after markets rebound, you will miss the early gains (which are often the strongest) and may buy back at a high price.
5. Even if you've stopped working, your savings could be invested for more than 30 years, and about 30% of the income paid from your retirement income account could come from the returns you make in retirement.

Introduced on July 1, 2018, this scheme provides a pathway to significantly increase super balances, especially for those who might not have had the chance to save adequately during their working years.

Since 2018-19, nearly 100,000 Australians have used the downsizer rules to make more than $25 billion worth of contributions to their super, Australian Taxation Office (ATO) figures show.

If you're considering downsizer contributions for your superannuation balance, doing your research is essential.

In this guide, we'll discuss the process, rules and eligibility requirements for downsizer super contributions to help you determine whether this is the right move for you.

 

 

 

 

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What are downsizer super contributions?

Many older Australians are often left with the choice to sell or keep their family home once they become empty nesters.

Downsizer super contributions allow Australians over the age of 55 to maximise the value of selling their property by making a one-off payment to their superannuation.

Each spouse can contribute up to $300,000, which means you could have a combined potential contribution of up to $600,000, regardless of their existing super balance.

This scheme was introduced to encourage older Australians to downsize to smaller, more manageable homes while allowing them to boost their super with the excess funds from the sale.

Unlike standard super contributions, downsizer contributions do not count towards the standard contribution caps, making them a worthwhile option for those looking to grow their retirement savings quickly.

Four key benefits of downsizer contributions

Living a comfortable retirement means getting on top of your strategies earlier. If you're thinking about downsizing your property for the benefit of your super, you can look forward to the following benefits:

• Boosts retirement savings - Downsizer contributions significantly boost your super balance, helping to improve your financial security in retirement. This can be particularly beneficial for those unable to contribute large amounts during their working years. Plus, it's an after-tax contribution, so you won't incur the 15% contributions tax when you add it to your super.
• Flexible investment options - By increasing your super, you gain access to a broader range of investment options, allowing you to tailor your super portfolio to your risk tolerance and financial goals.
• No impact on super contribution caps - Downsizer contributions do not count towards your regular concessional or non-concessional contribution caps, allowing you to maximise your super contributions without breaching these limits.
• Simplifies finances - Aside from plumping up your super balance, downsizing to a smaller, more manageable home can reduce ongoing costs and maintenance, freeing up cash flow to enjoy your retirement years the way you want to.

Eight rules for downsizer contributions - what you need to know

Specific rules and requirements must be met to take advantage of downsizer super contributions. These include:

1. Age requirement

You must be 55 years or older at the time of making the downsizer contribution. This is a change from the previous minimum age of 60 to make the scheme more accessible to those approaching retirement.

2. Homeownership

The property being sold must have been owned by you or your spouse for at least 10 years before the sale. This ensures that the property has been a long-term asset rather than a recent purchase for quick financial gain.

3. Primary residence

The home must be classified as your main residence for the purpose of the capital gains tax (CGT) exemption. However, it doesn't need to be your primary residence at the time of sale, meaning you can still qualify even if you've moved out prior to selling.

4. Timing of contribution

The contribution must be made within 90 days of receiving the sale proceeds, generally measured from the date of settlement. However, extensions can be requested if there are delays outside your control, such as legal or settlement issues.

5. Contribution limits

As we mentioned earlier, individuals can contribute up to $300,000, or the total sale proceeds if they are less than this amount. It's important to note that the contribution cannot exceed the total sale price of your home.

6. No work test requirement

There is no requirement to meet a work test, making downsizer contributions accessible even to those who are retired or not currently employed.

7. Previous use of downsizer contribution

You can only make a downsizer contribution from the sale of one home in your lifetime. This means if you've previously owned and sold a home, you cannot access the scheme.

8. Required documentation

You must complete the ATO downsizer contribution form and provide it to your super fund when making the contribution. This ensures the correct tax treatment of the contribution under the downsizer rules.

Will downsizer contributions affect your age pension?

The long and the short of it is that making downsizer contributions to superannuation can affect entitlements like the age pension.

While someone's family home is typically not counted an asset when calculating entitlements, any downsizer contributions may not be exempt from the pension means test.

There are different strategies related to downsizing contributions and the age pension that individuals or couples may want to consider though, which is why it could be worth seeking financial advice before making a decision.

How can you make a downsizer super contribution?  

After ensuring that you meet the eligibility criteria and then going through the process of selling your home, how can you go about getting the proceeds (up to the relevant caps) into your super?

• Complete the ATO form - Ensure that you fill in a downsizer contribution into super form from the ATO or an equivalent, approved form from your super fund  
• Submit the form - Send the completed form to your super fund, or funds if you're wanting to split contributions between multiple accounts
• Make the contribution - After receiving the form your fund may supply you with payment details to transfer the funds. Just remember, you 90 days to make a contribution after you receive the proceeds of the sale
• Check your account - Once the transfer has been made, check your account to ensure that the contribution has been successfully added to your existing funds   

Is the downsizer super contribution scheme right for you?

Any financial strategy requires careful consideration, and the downsizer super contribution scheme is no different. While participating in the scheme can drastically and positively affect your retirement savings, it's still important to consider the bigger picture.

Selling your home to make a downsizer contribution should align with your broader financial strategy. This means taking into account current and predicted market conditions, the cost to sell and the potential capital growth of your property. In these circumstances, timing the sale well can help maximise the funds available for contribution.

It's also essential to remember that downsizing is not just a financial decision but also a lifestyle one. Moving at any age is a significant change, and it's important to evaluate how moving into a smaller home or to a new area will impact your daily life, social connections and overall wellbeing.

Make the right choice for your financial future with the Money superannuation hub

Downsizer super contributions offer a powerful strategy for older Australians to maximise their retirement savings using the equity built up in their home. By understanding the eligibility criteria and potential benefits, you can make an informed decision about whether this option is right for you.

For more information and guidance on managing your superannuation, visit the Money Superannuation Hub.

We have stacks of comprehensive resources and guides to help you navigate the complexities of superannuation funds and maximise your retirement savings so you can enjoy the retirement you deserve.

The research indicated that 41% of women are financially confident about retirement, compared to 59% of men.

This discrepancy is exacerbated across other categories, as 73% of women are worried about having enough super for retirement, compared to 56% of men.

More women (71%) fear they won't be able to afford the retirement lifestyle they want, while concern among men (53%) is not as significant.

While 51% of women hold back on day-to-day spending due to fears about running out of money in retirement, only 42% of men share this worry.

Meanwhile, 66% of female members said leaving a financial legacy for future generations is an important goal, while only 57% of male members shared in this perspective.

The research suggested the higher level of financial insecurity among female members is due to lower super balances driven by gender pay gaps and time out of the workforce.

However, the findings also identified lower levels of knowledge and engagement among women.

Only 55% of women expressed confidence in Australia's superannuation system compared to 71% of men. Despite this, only 26% of women have sought financial advice for retirement while 34% of men have sought this assistance.

While only 34% of women indicated that they understood the concept of compounding returns before the age of 40, 61% of men said that they understood this function.

This dissonance is also represented in the 30% of women that responded they do not know who their super provider is or do not engage with their super provider, compared to the 23% of men that shared this view.

The retirement confidence gap worsens for single women, as only 36% of female respondents indicated they feel financially confident about retirement. In contrast, 45% of single men feel financially confident about life after work.

For separated or divorced women in their 40s this number dropped to 21% compared to 50% of men in the same situation. Of the members that identify as single women with kids in their 40s, only 19% feel confident in contrast to 40% of men.

AMP deputy chief economist Diana Mousina ssays aid the national gender gap in financial literacy is more severe than peer countries, such as the US, Germany and the UK.

"More than one in three Australian adults are financially illiterate and, worryingly, women consistently score lower than men - with Australia's gender literacy gap larger than in many comparable countries," she says.

"The retirement confidence gap we're seeing among women is the predictable result of a long-running financial literacy gap."

AMP group executive for superannuation and investments Melinda Howes says: "Our research shows women are more anxious on every measure, and it's no surprise given they retire with smaller super balances after years of pay gaps, part-time work and time out caring for others."

"We cannot accept a future where Australian women remain more worried than men about their financial futures."

The good news, Howes says, is that help has never been more accessible.

Mousina agreed, saying the financial literacy gender discrepancy can be fixed through better education, workplace programs and support from super funds.

Howes says: "Women can take back control by engaging with their super, knowing their fund, checking their balance and investment options, and feeling confident to ask for help."

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Indexing is an investment strategy that can allow a fund to mirror market returns, often at a very low cost to investors. This year, our winner in this category is NGS Super.

NGS Super is a leading super fund for education and community-based professionals - its initials stand for 'non-government schools'. But the fund is open to everyone, and it has been helping Australians grow their super for more than 35 years.

This experience has shaped NGS Super's understanding that everyone has unique needs and goals when it 
comes to their super savings and plans for retirement.

Chief executive Natalie Previtera says, "As an industry super fund, we are run only to benefit our members, so everything we do is designed to help them make the most of their super - investment returns are central to this. That's why we are focused on delivering strong, market-resilient results for our members.

"We carefully manage risk and keep costs low to ensure our fees remain competitive.

"This combination aims to capture opportunities in good times and provide stability when markets are volatile - all managed by an experienced team."

What makes a super fund the best in 2026?

Superannuation assets now exceed $4.3 trillion, and member balances represent a sizable component of aggregate household wealth.

The Australian Prudential Regulation Authority (APRA) data at June 2025 shows more than half of superannuation industry assets are invested by industry super funds (36%) ('profit to members' funds) and retail super funds (20%) ('for profit' or 'commercial super funds'), with the remainder of the sector's assets being self-managed super funds (SMSFs) at 24%, public sector funds (14%), corporate super funds (1%) and other statutory or public exempt schemes (5%).

Moneys' superannuation awards span best performing products, the best value, the most innovative as well as those that deliver the best value insurance. To be eligible for the Money awards, a superannuation product must be a public offer and be AAA-rated by Rainmaker.

Identifying Australia's top performing superannuation products involved Rainmaker reviewing MySuper products (default 'flagship' products), and asset classes that include growth, balanced, moderate (capital stable), shares, property, bonds, cash and ESG investment options.

MySuper products are manufactured by providers in two dimensions; diversified single-strategy products that spread super balances across major asset classes (Australian and international equities, fixed interest, property etc.) and lifecycle products that invest across asset classes in differing proportions, depending on a member's age (younger cohorts having higher exposures to shares and property, and lower allocations to fixed interest and cash, while older age groups are more defensively positioned).

Rainmaker identifies Australia's best performing superannuation products, MySuper single strategy products, and investment choices by assessing how they performed over the past 10, five and three years, as well as what they achieved over the past 12 months to June 30, 2025. Rainmaker's proprietary composite scoring method enables us to reward consistency and to identify those superannuation products that perform best over different market cycles.

MySuper lifecycle products were assessed in a similar way, with the exception being that we identified those products that had the best overall rankings across options designed for fund members in their teens, 20s, 30s, 40s, 50s and 60s. We awarded the best lifecycle product as the one that ranked the highest right across the age cohorts.

The best-value super product for young people is evaluated as the best product when we look at the returns that people in their 20s would have received considering the fees that hit their lower account balance.

Identifying the lowest cost products was undertaken by assessing the investment, administration and member fees that a fund member would be charged if they had both $10,000, $50,000 and $100,000 as their superannuation account balance. It should also be noted that zero-fee indexed options are not free because members still pay fees to be invested in the fund.

Fees for retirement products, also known as pension products, were assessed by reviewing fees they would pay if they had assets of $100,000, $500,000 and $1,000,000 in their account. So Rainmaker ranked the funds given multiple account balances for both super and pension products.

Rest said the 2025 return was underpinned by the strong performance of Australian and international listed share markets.

The super fund said this latest result contributes to the Growth option's solid long-term annualised return of 7.31% over the 10-year period to 31 December 2025, which exceeded the investment return objective of 5.83% over the same time period.

This continues the Growth option's long-term track record of consistently exceeding its CPI+3% investment return objective over 10-year periods, it said.

Rest's High Growth option and its RIAA-certified Sustainable Growth option also benefited from the strong performance of share markets, returning 11.25% and 11.49% respectively for the 2025 calendar year.

Rest chief investment officer Michael Clancy says 2025 delivered another year of strong investment returns for members, with economic conditions largely playing out as Rest's investment team expected - with resilient but slowing economic growth, moderating inflation and higher-for-longer interest rates.

"Global share markets continued to be the leading drivers of investment performance in 2025. Markets responded positively to earnings strength, which supported company valuations, and several central banks eased monetary policy.

"It's great to deliver another year of healthy investment returns in 2025 for Rest's more than two million members. A return of 9.22% means a 30-year-old Rest member with $35,000 in their super would have added more than $3000 to their balance over the year.

"Strong investment returns over the short-term help support the delivery of our long-term investment return objectives, which are important given Rest's typical member is younger than most and decades away from retirement."

Clancy is also expecting the global economy to continue to grow in 2026, although numerous headwinds remain.

"Inflation, while improved, is proving sticky both in Australia and the US. The weakening labour market in the US has allowed the Federal Reserve to consider further rate cuts. In contrast, recent data in Australia has indicated a broad-based rise in price pressures.

"With household budgets under pressure and consumer confidence weakening, how central banks navigate inflation in 2026 will have a direct impact on Australian workers' wages, job security, and long-term retirement outcomes.

"The new year has just begun, but we've already seen that the geopolitical landscape remains uncertain. This, along with the strength of US demand and labour conditions, will influence the path back towards central bank inflation targets."

Clancy added that he believes the super fund's long-term, well-diversified and forward-looking investment approach puts it in good stead to continue to deliver its long-term investment return objectives.

"We'll continue to focus on investment opportunities that are informed by the long-term megatrends that we believe will shape society, economies and financial markets over the coming decades - decarbonisation, deglobalisation, demographics, digitalisation, and debt and central bank policy."

This article first appeared on Financial Standard

Over the past few years, greed has come to the fore, with investors tempted by very strong returns from share markets. However this can be high-risk, which applies to all investments, including superannuation.

For many of us, outside of the family home, superannuation will be the largest investment we have.

Most people remain invested in the default super investment option available through their fund.  This is usually a balanced option that combines returns with capital preservation.

Many Australians select this option when they set up their fund, look at their statement once a year, and that is about all the engagement they will have with their super.

However, there is a growing number of people who are becoming more active with their superannuation, particularly in switching investment strategies.

While it is good news that people are more interested in their superannuation, it is bad news that they may not be making the best decisions with their long-term retirement savings.

A recent study looked at 42,000 superannuation switch decisions between the beginning of January in 2019 and the end of March 2021.

This captured the extreme share market movements at the beginning of the COVID pandemic, when share markets fell by approximately 30%, but had largely recovered these losses by the end of 2020.

It found that more than half the superannuation switches resulted in a worse outcome for the member than if they had simply done nothing at all during this period.

This is an illuminating example of fear and greed in action.

It is understandable that people want to move into a conservative investment option after investments have already fallen substantially in value. Likewise, people tend be reluctant to move back into share markets until they have already risen 20%.

But this type of trading will result in members losing money. If this pattern of selling low and buying high is repeated, it can destroy most of someone's wealth.

It is not just superannuation that is affected by this. When investing in shares, it is often the case that if people had simply purchased shares and then not touched them for several years, the outcome would be better than more regular buying and selling.

Other research indicates the average investor return in share markets is about 3% a year less than the index. While this might not sound like much of a difference, over a long period of time it will compound into a significantly worse financial outcome.

Technology means it is now much easier than it was in the past to switch super, or buy or sell shares - people can simply change their options using a mobile phone app.

But while technology has improved our ability to access information and trade more in shorter periods, it has increased the risk that we could do something that worsens our financial position.

To a certain degree, Australians are protected by the limited investment options offered by super funds. For example, people are not able to put all of their super into bitcoin, or gold or whatever the latest investment du jour might be.

But we can still get caught in the trap of following last year's winner. This might work for a year or two, but historic one-year returns show that each asset class can move from the top to the bottom in a very short period of time.

All of the above is a long way of saying that the default investment option for superannuation is probably the best option for most people throughout their working life.

For those who have a financial adviser, this can be a valuable behavioural coach, particularly in times of crises, to remind us that this too shall pass.

Generally speaking, the point at which most people tend to seek advice is when nearing retirement.  A common question is whether their superannuation investments should change?

The simple answer is probably not - the average life expectancy for Australians means that many will spend close to 30 years in retirement, which is a long timeframe.

In order to preserve the wealth they have spent a lifetime building and to live off the income in retirement, having strong, stable investment returns is a must - enough to cover the pension withdrawal and also a couple of per cent for inflation.

It's also a good idea to have a few years' worth of pension payments in safe, secure investments that will hold their value in a market downturn.

All this will help with the 'sleep at night' factor when retired. So, this New Year, it could be worth making a resolution to leave super investments alone.

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Quality advice can be critical to helping Australians make the most of their super savings. Hostplus is making good advice more accessible to its fund members with its digital tools.

Super funds have come a long way in terms of the online tools available that take the guesswork out of retirement planning. But Hostplus is setting a new benchmark.

The fund ushered in a new era in financial advice for members with the launch in late 2024 of SuperSmart, an innovative education-led digital tool aimed at helping members achieve the retirement outcomes they deserve.

SuperSmart delivers personalised financial education and digital personal advice to eligible Hostplus members, with a user-friendly, fully integrated, self-guided platform.

The beauty of SuperSmart is that Hostplus members can engage with bite-sized educational modules that offer self-paced, tailored learning in a fun and interactive way.

The platform also comes packed with intuitive features such as an interactive risk profiler, helping members 
to optimise their super and plan for retirement.

David Elia, chief executive of Hostplus, observes that convenience also matters to fund members.

"That's why we've developed the Hostplus app, giving members a secure and simple way to manage their super on the go.

"These tools are part of our broader commitment to making super more accessible, more personal and more empowering for every member.

"We're incredibly grateful to be recognised by Money - a publication that's long been a trusted voice for Australians when it comes to financial insight and guidance."

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Australians' super savings are on track to become the second largest globally (behind the US), surpassing the British and Canadian systems by the early 2030s.

It goes to show the sheer scale of our national super system, and when it comes to managing that money in retirement, UniSuper 
takes out our top award.

In the competitive pension fund market, UniSuper is no stranger to success. The fund also took out this award each year from 2023 to 2025. It's an impressive track record - one that shows UniSuper is ticking a lot of boxes for helping members make the most of their money in retirement.

UniSuper also won Best Fixed-Interest Super Product and Best Fixed-Interest Pension Product as part of the 2026 Best of the Best awards.

UniSuper chief marketing and growth officer, Dani Murrie describes UniSuper's point of difference in the drawdown phase. "A holistic advice and education service supports our pension members and membership more broadly.

"Members can speak to qualified financial professionals across 34 locations nationwide as part of our in-house financial advice offering - spanning general advice through to comprehensive advice. We're extremely proud of this service and the results it generally yields for members at all life stages, complementing strong ong-term investment returns."

UniSuper members under advice can also utilise the review component of the fund's service offering to track their progress toward personal retirement goals - thereby they are less likely 
to under or overspend.

"Additionally, our advisers can recommend different types of retirement income stream options both inside and outside the fund, and at any point of a member's retirement journey," says Murrie.

"Highlighting the value of advice in retirement, Murrie says UniSuper members receiving advice consistently report higher levels of financial knowledge and retirement preparedness, and tend 
to take more proactive actions.

"UniSuper adds value to members with retirement products designed to deliver strong performance and outstanding value. According to Murrie, this "helps members realise great outcomes in retirement".

UniSuper's line-up of retirement products includes Flexi Pension - an account-based pension that aims to provide flexibility in retirement incomes. The Lifetime Income product offers longevity protection and is designed to provide income for life.

UniSuper members who need help visualising their retirement can tap into the fund's RetireMentors resource.

This series of online videos showcases how other UniSuper members have made their transition to retirement. Part of the series' charm is that it shows how retirement isn't the end of the story, 
it's the beginning of a new one.

What makes a super fund the best in 2026?

Superannuation assets now exceed $4.3 trillion, and member balances represent a sizable component of aggregate household wealth.

The Australian Prudential Regulation Authority (APRA) data at June 2025 shows more than half of superannuation industry assets are invested by industry super funds (36%) ('profit to members' funds) and retail super funds (20%) ('for profit' or 'commercial super funds'), with the remainder of the sector's assets being self-managed super funds (SMSFs) at 24%, public sector funds (14%), corporate super funds (1%) and other statutory or public exempt schemes (5%).

Moneys' superannuation awards span best performing products, the best value, the most innovative as well as those that deliver the best value insurance. To be eligible for the Money awards, a superannuation product must be a public offer and be AAA-rated by Rainmaker.

Identifying Australia's top performing superannuation products involved Rainmaker reviewing MySuper products (default 'flagship' products), and asset classes that include growth, balanced, moderate (capital stable), shares, property, bonds, cash and ESG investment options.

MySuper products are manufactured by providers in two dimensions; diversified single-strategy products that spread super balances across major asset classes (Australian and international equities, fixed interest, property etc.) and lifecycle products that invest across asset classes in differing proportions, depending on a member's age (younger cohorts having higher exposures to shares and property, and lower allocations to fixed interest and cash, while older age groups are more defensively positioned).

Rainmaker identifies Australia's best performing superannuation products, MySuper single strategy products, and investment choices by assessing how they performed over the past 10, five and three years, as well as what they achieved over the past 12 months to June 30, 2025. Rainmaker's proprietary composite scoring method enables us to reward consistency and to identify those superannuation products that perform best over different market cycles.

MySuper lifecycle products were assessed in a similar way, with the exception being that we identified those products that had the best overall rankings across options designed for fund members in their teens, 20s, 30s, 40s, 50s and 60s. We awarded the best lifecycle product as the one that ranked the highest right across the age cohorts.

The best-value super product for young people is evaluated as the best product when we look at the returns that people in their 20s would have received considering the fees that hit their lower account balance.

Identifying the lowest cost products was undertaken by assessing the investment, administration and member fees that a fund member would be charged if they had both $10,000, $50,000 and $100,000 as their superannuation account balance. It should also be noted that zero-fee indexed options are not free because members still pay fees to be invested in the fund.

Fees for retirement products, also known as pension products, were assessed by reviewing fees they would pay if they had assets of $100,000, $500,000 and $1,000,000 in their account. So Rainmaker ranked the funds given multiple account balances for both super and pension products.

According to calculations by Super Consumers Australia (SCA), a typical single retiree who rents will need $659,000 in super to ensure a "decent standard of living". For a couple, they would need a combined super balance of $786,000.

These numbers assume a single person rents a one-bedroom apartment and a couple rents either a one-bedroom or two-bedroom apartments in a capital city.

As at June 2025, the average rent paid by a single person for a typical one-bedroom apartment in Australia's capital cities was $470 a week; in Sydney, the average was $560. For couples, the average rent for a typical one or two-bedroom apartment was $500 and $590 in Sydney.

Assuming an average spending target of $63,000, SCA found single retiree renters would need to save more than one and a half times as much super as retirees who own their home, even in the cities with the cheapest rent. In some cases, they need to have a super balance that's as much as three times higher.

For couples, the findings were about the same.

Overall, due to skyrocketing rental prices, those who rent in retirement will need to spend 30 to 47% more than a homeowner to achieve the same standard of living.

According to the Australian Institute of Health and Welfare, there are over 325,000 Age Pensioners receiving Commonwealth Rent Assistance, of which 32% are still in rental stress - meaning they spend more than 33% of their income on their housing.

The maximum amount a single person can receive in rental assistance each year is $5600.40; however, most renters spend over $20,000 a year on rent. The Commonwealth Rent Assistance payment also only increased by 2% in the 12 months to September 2025, while rents rose by more than double that in the same period.

The difference homeownership makes

As mentioned, SCA found homeowners need much less in the way of total super savings heading into retirement.

For the typical single person, assuming they'd like to be able to spend $44,000 a year, SCA estimates a super balance of $322,000 - that's $337,000 less than a renter. For a couple looking to spend $47,000, the combined super balance required is $432,000 - a difference of $364,000.

The figures are based on the real spending habits of older Australians as collected by the Australian Bureau of Statistics and also assume the Age Pension covers a decent chunk of spending needs.

Unlike the many renters struggling with financial stress, SCA found 90% of retirees who own their home are satisfied or neutral about their financial situation.

Who to believe?

The Association of Super Funds of Australia (ASFA), considered to be the peak advocacy body for the superannuation sector, has been producing its own Retirement Standard for about two decades which is widely considered the industry benchmark.

However, whether you're a homeowner or a renter, ASFA's numbers stand in stark contrast to those produced by SCA.

The association says that homeowners looking to retire at age 67 and do so in comfort would need to have a combined $690,000 in super savings if a couple, and $595,000 if single.

For renters, singles - who are assumed to live a more modest lifestyle - would need a super balance of $340,000 while couples would need $385,000.

That's right, for a homeowner ASFA predicts much more is needed to fund a comfortable lifestyle but suggests far less is needed for renters than SCA believes.

And to top it off? As it stands, the total superannuation account balance for the average Australian approaching or already in retirement is $420,934 - apparently not nearly enough to retire in comfort, regardless of which set of standards you believe.

What can be done for renters?

This is the first time SCA has produced such numbers for renters. It says the findings demonstrate the need for systemic change, rather than advice to simply save more for retirement.

"The government must increase Commonwealth Rent Assistance, link it to rent CPI, and invest in housing designed for older Australians," SCA chief executive Xavier O'Halloran says.

Likewise, the Australian Council of Social Service says there are three key things the government must urgently do to address the growing risk of poverty and homelessness in retirement.

It would like to see:

• The lowest income support payments such as Jobseeker and Youth Allowance increased to at least $589 per week (currently the minimum is $472.50 per week)
• The maximum rates of Commonwealth Rent Assistance increased substantially to align with the cost of renting today (currently the maximum for a single person is $215.40 per fortnight)
• A target set to increase the nation's supply of social housing nationally to at least its historical level of 6% of homes within a decade and 10% of homes in two decades to alleviate housing stress of people on low incomes

Finally, Housing for the Aged Action Group chief executive Fiona York agrees, pointing out that the retirement system was designed with the expectation that older people would own their home. In reality, the number of older people renting has increased by 73% since 2015.

"Living in expensive and poor-quality homes is impacting the health and wellbeing of older renters and preventing their ability to age well and with dignity," she says.

"We need to address this retirement divide, by building more public and community housing, reforming housing-related tax concessions, cap rent increases to no more than CPI and raising the rate of income support payments."

This is unclaimed or lost superannuation. The latest figures from the Australian Taxation Office (ATO) revealed that there's $18.9 billion worth of super waiting to be reunited with 7.3 million people.

That's lost and unclaimed money being held by the ATO ($6.2 billion) and by superannuation funds themselves ($12.7 billion).

"Superannuation is one of the most important investments you make in your lifetime, and we want to ensure every dollar earned for retirement ends up where it belongs," says Ben Kelly, ATO deputy commissioner.

"The ATO is continuing work to reduce the amount of lost and unclaimed super by reuniting individuals with their unclaimed super, but we need your help."

Why does superannuation go missing?

Peter Treseder, education manager at AustrailanSuper, says that people often get disconnected from their superannuation when they lose communication with their fund.

"Probably the biggest one is changing address. You might remember to change your license and your bills, but people often forget to update their super fund, so the fund doesn't know where to find you.

"It also happens when people change their phone number or email address - those typical ways for super funds to contact you."

In the past, it wasn't uncommon for workers to open a new account with a different fund every time they started a new job, which made it easier to lose track of multiple accounts.

"I remember a member in regional Victoria years ago who had 12 super funds from 30 or so jobs. When he got a new job he got a new fund and never kept track or consolidated them," Treseder recalls.

However, Treseder says that the introduction of super stapling in 2021 - where accounts follow people around when they switch jobs - has played a role in minimising new cases of lost super.

"Stapling has certainly reduced the number of accounts people have. What stapling doesn't address is accounts that people had before the legislation came in - they weren't consolidated."

How can you check for lost superannuation?

The ATO makes the point that just because you may have lost touch with a chunk of your superannuation doesn't mean that it's lost forever.

There are, in fact, some relatively simple ways that people can search for lost super.

1. Through the ATO

Australians who suspect that they have unclaimed super can search for it via a few different mediums through the ATO. That includes:

• The ATO Online portal via MyGov
• The ATO App
• The ATO's lost super search line (13 28 65)
• Filling out a 'Searching for lost and unclaimed super' form

2. Through a super fund

Alternatively, a number of funds now have tools and services to help their members connect with lost superannuation.

Treseder says that so far this year, 34,000 AustralianSuper members have been reunited with more than $62 million worth of lost super - the vast majority of whom were able to do so via their online accounts.

"When they find money, they're very happy. We had one woman in Brisbane who found over $40,000 in a lost super account that, somehow, she had forgotten about."

For people who do come across lost accounts, they can then consider consolidating that superannuation with their other funds (should they choose to).

It may also be worth checking for other lost money at the same time, given that there's more than $2 billion from dormant bank accounts, unpaid dividends and life insurance payouts waiting to be claimed.

What are the benefits of finding lost super?

Whether it's loose change under the car seat or missing superannuation in an old account, at the end of the day, finding extra money is always going to be a welcome development.

One of the additional benefits to finding and consolidating lost super though, Treseder explains, is reducing the amount of fees being paid.

"Yes, people are going to miss out on returns, but it's really the fees associated with having multiple funds that can be an issue.

"Having multiple accounts with multiple fees ultimately means that less money stays in your accounts, which means it's not going to grow the same way with the wonders of compound interest."

Treseder also believes that searching for lost funds can be an opportunity for people to check in on other superannuation settings.

"Look, super is often confusing for people, but it's actually fairly straightforward - you just have to start that engagement.

"That might be finding all your funds and, once you've found them, looking at making sure you're getting contributions, checking that your investment option is right and making sure your insurance arrangements are adequate for your needs."

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

The way your super is invested can have a significant impact on the value of your final nest egg, and a 'balanced' strategy offers the appeal of access to a wide range of underlying asset classes. Our winner, Hostplus, also took out this award in 2025.

Hostplus chief executive David Elia says, "Our Balanced investment option is underpinned by a clear and disciplined investment philosophy - diversification, active management and a long-term investment horizon.

"We don't try to time the market or chase short-term wins. These principles guide how we construct the portfolio to help deliver strong, consistent returns over the long term.

"The beauty of a balanced investment option is the all-important diversification it brings to retirement savings. Elia notes that Hostplus diversifies not only across asset classes, but also within asset classes and across global regions, which he says "helps weather the ups and downs of markets and capture a broad range of opportunities.

"Our scale allows us to invest in long-term, high-potential assets such as infrastructure and venture capital - investments that may take years to mature but which are designed to deliver meaningful value to members."

Hostplus won several accolades as part of the 2026 Best of the Best awards, including Best Super Fund, Best MySuper Single Strategy Product, and Innovation on Digital Advice Tools.

Want more Best of the Best? Australia's best super fund revealed

What makes a super fund the best in 2026?

Superannuation assets now exceed $4.3 trillion, and member balances represent a sizable component of aggregate household wealth.

The Australian Prudential Regulation Authority (APRA) data at June 2025 shows more than half of superannuation industry assets are invested by industry super funds (36%) ('profit to members' funds) and retail super funds (20%) ('for profit' or 'commercial super funds'), with the remainder of the sector's assets being self-managed super funds (SMSFs) at 24%, public sector funds (14%), corporate super funds (1%) and other statutory or public exempt schemes (5%).

Moneys' superannuation awards span best performing products, the best value, the most innovative as well as those that deliver the best value insurance. To be eligible for the Money awards, a superannuation product must be a public offer and be AAA-rated by Rainmaker.

Identifying Australia's top performing superannuation products involved Rainmaker reviewing MySuper products (default 'flagship' products), and asset classes that include growth, balanced, moderate (capital stable), shares, property, bonds, cash and ESG investment options.

MySuper products are manufactured by providers in two dimensions; diversified single-strategy products that spread super balances across major asset classes (Australian and international equities, fixed interest, property etc.) and lifecycle products that invest across asset classes in differing proportions, depending on a member's age (younger cohorts having higher exposures to shares and property, and lower allocations to fixed interest and cash, while older age groups are more defensively positioned).

Rainmaker identifies Australia's best performing superannuation products, MySuper single strategy products, and investment choices by assessing how they performed over the past 10, five and three years, as well as what they achieved over the past 12 months to June 30, 2025. Rainmaker's proprietary composite scoring method enables us to reward consistency and to identify those superannuation products that perform best over different market cycles.

MySuper lifecycle products were assessed in a similar way, with the exception being that we identified those products that had the best overall rankings across options designed for fund members in their teens, 20s, 30s, 40s, 50s and 60s. We awarded the best lifecycle product as the one that ranked the highest right across the age cohorts.

The best-value super product for young people is evaluated as the best product when we look at the returns that people in their 20s would have received considering the fees that hit their lower account balance.

Identifying the lowest cost products was undertaken by assessing the investment, administration and member fees that a fund member would be charged if they had both $10,000, $50,000 and $100,000 as their superannuation account balance. It should also be noted that zero-fee indexed options are not free because members still pay fees to be invested in the fund.

Fees for retirement products, also known as pension products, were assessed by reviewing fees they would pay if they had assets of $100,000, $500,000 and $1,000,000 in their account. So Rainmaker ranked the funds given multiple account balances for both super and pension products.

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

When it comes to super funds, Australians are spoilt for choice with 21 industry funds, 57 retail funds and a variety of public service and corporate funds to pick from. This breadth of choice also highlights how difficult it is to take out our top award of Best Super Fund - a title that goes to Hostplus.

David Elia, chief executive of Hostplus, says, "We're incredibly honoured by this recognition - and we see it as a reflection of our commitment to doing the right thing by our members, day in and day out.

"Rather than trying to be different for the sake of it, we focus on staying true to our purpose: helping our members retire with dignity and confidence.

"That means making thoughtful decisions, staying the course on our long-term strategy and always putting members first. This award is a welcome reminder that doing the basics well - and doing them with care - really matters."

That care shines through in the approach Hostplus takes to adding value for members.

"Delivering value to our members means focusing on strong net benefit outcomes - the returns members receive after fees and taxes. It's the most meaningful measure of how well we are helping members grow their retirement savings," says Elia.

He says Hostplus achieves solid returns by leveraging two key strengths.

"First, our size and scale allow us to keep administration fees low by spreading costs across a large membership base," he says.

"That same scale also enables us to provide a broad range of products, services and support, ensuring members have access to the tools, advice and options they may need at every stage of their super journey.

"Second, we focus on delivering strong, consistent, long-term investment performance. Together, low administration fees and strong returns over the long-term drive better net benefit outcomes, helping our members keep more of what they earn and retire with greater financial confidence."

Hostplus is also assisting members through a significant investment in new technology.

"One of the ways we're using technology to better support our members is through our award-winning digital education tool, SuperSmart," says Elia.

"It's free for members and designed to help them build their knowledge and confidence around super and retirement planning through an interactive, easy-to-use format that's available at their own pace. Whether someone's just starting out or planning their next chapter, SuperSmart helps make advice more approachable."

Hostplus won several accolades as part of the 2026 Best of the Best awards, including Best Balanced Super Product, Best MySuper Single Strategy Product, and Innovation on Digital Advice Tools.

Want more Best of the Best? Australia's best-value super fund for young people revealed

What makes a super fund the best in 2026?

Superannuation assets now exceed $4.3 trillion, and member balances represent a sizable component of aggregate household wealth.

The Australian Prudential Regulation Authority (APRA) data at June 2025 shows more than half of superannuation industry assets are invested by industry super funds (36%) ('profit to members' funds) and retail super funds (20%) ('for profit' or 'commercial super funds'), with the remainder of the sector's assets being self-managed super funds (SMSFs) at 24%, public sector funds (14%), corporate super funds (1%) and other statutory or public exempt schemes (5%).

Moneys' superannuation awards span best performing products, the best value, the most innovative as well as those that deliver the best value insurance. To be eligible for the Money awards, a superannuation product must be a public offer and be AAA-rated by Rainmaker.

Identifying Australia's top performing superannuation products involved Rainmaker reviewing MySuper products (default 'flagship' products), and asset classes that include growth, balanced, moderate (capital stable), shares, property, bonds, cash and ESG investment options.

MySuper products are manufactured by providers in two dimensions; diversified single-strategy products that spread super balances across major asset classes (Australian and international equities, fixed interest, property etc.) and lifecycle products that invest across asset classes in differing proportions, depending on a member's age (younger cohorts having higher exposures to shares and property, and lower allocations to fixed interest and cash, while older age groups are more defensively positioned).

Rainmaker identifies Australia's best performing superannuation products, MySuper single strategy products, and investment choices by assessing how they performed over the past 10, five and three years, as well as what they achieved over the past 12 months to June 30, 2025. Rainmaker's proprietary composite scoring method enables us to reward consistency and to identify those superannuation products that perform best over different market cycles.

MySuper lifecycle products were assessed in a similar way, with the exception being that we identified those products that had the best overall rankings across options designed for fund members in their teens, 20s, 30s, 40s, 50s and 60s. We awarded the best lifecycle product as the one that ranked the highest right across the age cohorts.

The best-value super product for young people is evaluated as the best product when we look at the returns that people in their 20s would have received considering the fees that hit their lower account balance.

Identifying the lowest cost products was undertaken by assessing the investment, administration and member fees that a fund member would be charged if they had both $10,000, $50,000 and $100,000 as their superannuation account balance. It should also be noted that zero-fee indexed options are not free because members still pay fees to be invested in the fund.

Fees for retirement products, also known as pension products, were assessed by reviewing fees they would pay if they had assets of $100,000, $500,000 and $1,000,000 in their account. So Rainmaker ranked the funds given multiple account balances for both super and pension products.

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Playwright George Bernard Shaw may have quipped that youth is wasted on the young, but superannuation certainly isn't.

A lifetime in the workforce can see today's 20-somethings amass a considerable nest egg by the time they retire, and when it comes to value for young people, Essential Super tops the leaderboard.

While Essential Super is available through the Commonwealth Bank, Vanessa Rowe, general manager of guidance and investing, explains, "Essential Super is provided by Colonial First State, a respected superannuation and investments business that has been trusted by millions of Australians to manage and grow their super over the past 30 years.

"The Essential Super experience is designed to help make the journey of saving for retirement feel easy. Members are able to open an account in minutes.

"Members tell us they really like that they can manage and track their super alongside their everyday banking in the CommBank app.

"It's an intuitive experience that helps them stay connected to their financial goals and helps keep super as their longest-term investment front of mind."

Want more Best of the Best? Best-value term deposits revealed

What makes a super fund the best in 2026?

Superannuation assets now exceed $4.3 trillion, and member balances represent a sizable component of aggregate household wealth.

The Australian Prudential Regulation Authority (APRA) data at June 2025 shows more than half of superannuation industry assets are invested by industry super funds (36%) ('profit to members' funds) and retail super funds (20%) ('for profit' or 'commercial super funds'), with the remainder of the sector's assets being self-managed super funds (SMSFs) at 24%, public sector funds (14%), corporate super funds (1%) and other statutory or public exempt schemes (5%).

Money's superannuation awards span best performing products, the best value, the most innovative as well as those that deliver the best value insurance. To be eligible for the Money awards, a superannuation product must be a public offer and be AAA-rated by Rainmaker.

Identifying Australia's top performing superannuation products involved Rainmaker reviewing MySuper products (default 'flagship' products), and asset classes that include growth, balanced, moderate (capital stable), shares, property, bonds, cash and ESG investment options.

 

 

 

 

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MySuper products are manufactured by providers in two dimensions; diversified single-strategy products that spread super balances across major asset classes (Australian and international equities, fixed interest, property etc.) and lifecycle products that invest across asset classes in differing proportions, depending on a member's age (younger cohorts having higher exposures to shares and property, and lower allocations to fixed interest and cash, while older age groups are more defensively positioned).

Rainmaker identifies Australia's best performing superannuation products, MySuper single strategy products, and investment choices by assessing how they performed over the past 10, five and three years, as well as what they achieved over the past 12 months to June 30, 2025. Rainmaker's proprietary composite scoring method enables us to reward consistency and to identify those superannuation products that perform best over different market cycles.

MySuper lifecycle products were assessed in a similar way, with the exception being that we identified those products that had the best overall rankings across options designed for fund members in their teens, 20s, 30s, 40s, 50s and 60s. We awarded the best lifecycle product as the one that ranked the highest right across the age cohorts.

The best-value super product for young people is evaluated as the best product when we look at the returns that people in their 20s would have received considering the fees that hit their lower account balance.

Identifying the lowest cost products was undertaken by assessing the investment, administration and member fees that a fund member would be charged if they had both $10,000, $50,000 and $100,000 as their superannuation account balance. It should also be noted that zero-fee indexed options are not free because members still pay fees to be invested in the fund.

Fees for retirement products, also known as pension products, were assessed by reviewing fees they would pay if they had assets of $100,000, $500,000 and $1,000,000 in their account. So Rainmaker ranked the funds given multiple account balances for both super and pension products.

Ivan had always been fiercely independent, even as dementia made daily life harder. His daughter Belinda wanted support that kept him connected, safe and at home - not stuck on a waiting list.

So, the family chose a private provider, bypassing government-subsidised care entirely.

"This choice let them focus on what mattered most: nursing care at home and companionship," says Ruba Fattouh, director of Just Better Care Ryde Parramatta.

They're not alone. Despite the government launching its new Support at Home program in November, a reform designed to simplify the system, many families are paying out of pocket instead.

Just Better Care's Melbourne and Hobart offices say private clients have jumped 87% in the past year.

What older Australians value in aged care

Just Better Care's national survey asked Australians approaching retirement to rank what matters most to them, and the top answers explain why private providers are seeing increased demand.

Staying at home topped the list, with nearly three quarters of respondents ranking it as their number one priority.

Quality of care came second, while low cost and affordability ranked third - showing that for many families, independence and quality matter more than price.

Other factors rounding out the top ten included provider reputation, flexibility, choice and control.

Interestingly, one in four older Australians still view private care as "mainly for the wealthy."

Yet what the survey shows is that families are increasingly weighing cost against control and quality, especially as the new Support at Home system beds in.

What Support at Home actually changes

Support at Home replaces Home Care Packages and Short-Term Restorative Care, with the Commonwealth Home Support Program transitioning by 2027.

The changes came in with Parliamentary bi-partisan support following recommendations from the Royal Commission into Aged Care Quality and Safety in 2021.

Older Australians are assessed through My Aged Care and allocated to one of eight funding classifications, with three short-term pathways covering things like home modifications and end-of-life support.

On paper, it's meant to be simpler.

"They place a stronger emphasis on early intervention to help older people stay independent for longer, and they aim to make pricing more standardised and transparent," says Callum McMillan, general manager at Just Better Care Mornington Group and Hobart.

He says clearer service categories and new safety safeguards are designed to improve quality and make it easier to know what's included.

But in practice, families are finding the system harder to navigate, and sometimes more expensive.

Pay-per-shower? The new co-payment pain points

Under Support at Home, all non-clinical services attract co-contributions of up to 80% per hour unless someone receives a hardship exemption.

The percentage is based on the type of service received. Participants will make:

• no contribution for clinical support services (such as nursing and physiotherapy)
• moderate contributions for independence services (such as personal care and assistive technology)
• the highest contributions for everyday living services (such as domestic assistance and gardening).

Critics say the details are controversial.

"Some bean counter in Canberra decided showering is a non-clinical service," aged care advocate Sarah Russell wrote in Michael West Media. That means older people who need help showering must now contribute towards it.

"Pensioners, for example, will be required to contribute 5% the cost," Russell said. "If an older person cannot afford the co-payment for a shower, they may need to skip it. Had the bean counter considered that not showering could very quickly become a clinical issue?"

For families already juggling rising living costs, even small co-payments add up.

Friction in the Support at Home rollout

Support at Home is still in its early rollout phase, but providers and advocates say cracks are already showing.

On his Support at Home Substack, aged care analyst Jeremy Curtis warned that mid-sized providers "who thought they were ready... aren't," with transition issues hitting "operational reality" long before policy catches up.

"The next few weeks will set the tone for the next few years," Curtis wrote.

"Providers who act early - tightening scheduling, fixing claims leakage, aligning finance and workforce, and resetting consumer experience - will not just stabilise under Support at Home, they'll outperform."

For families, the transition has created uncertainty. McMillan says the push for standardisation, while well-intentioned, risks eroding flexibility.

The Just Better Care survey found 52.3% of women and nearly 40% of men rank flexible support that adapts to changing needs as a top priority.

McMillan says digital barriers are also proving a real hurdle. Some older Australians struggle with online portals, passwords or My Aged Care terminology.

"Terms such as 'Support at Home', 'Home Care Packages' and 'Commonwealth Home Support Programme' often blend together," McMillan says.

Then there's trust. Aged care advocate Jim Moraitis says confusion is breeding suspicion:

"Trust towards aged care is in the toilet. And honestly... can you blame people?
When clarity is missing and information is patchy, it's human nature to assume the worst," Moraitis says.

The problem is this: aged care in Australia has become faceless in the eyes of consumers. People don't see the real humans behind the service - just 'the provider.'"

The survey found having consistent carers that they can get to know was a top priority for 40% of older Australians.

"If the sector doesn't tackle this head-on, not as a marketing exercise but as a responsibility, we risk eroding trust even further."

How does private aged care compare?

McMillan says the biggest drawback of private care is cost.

"Without subsidies, the expense sits entirely with the individual or their family, making it a significant out-of-pocket commitment. It isn't affordable for everyone, and many older Australians rely on subsidised care because of cost constraints."

But he says the benefits, especially during a major system overhaul, are driving families toward private providers:

• Immediate access: "Families can start services straight away without waiting for government approvals."
• Tailored support: "Care plans can be customised to someone's preferences, schedule and changing needs."
•  Simpler process: "No income assessments, no government forms, no complex budget rules."
• No caps: "Unlike subsidised packages with fixed allocations, private care lets people access exactly what they need, when they need it."
•  Rapid adjustments: "If someone's needs change, private providers can scale support immediately, whereas subsidised programs require reassessments and wait times, potentially risking their current state worsening while they wait."

What this means for families

For families weighing their next steps, the decision between subsidised and private care comes down to two things: values and money.

For some, the choice isn't about dollars but preserving independence and quality of life, even if that means paying more.

For others, cost decides everything, leaving them to navigate the teething problems of a new system still finding its feet.

Say I have $200,000 in super - is it better to invest in a self-managed super fund (SMSF) or in an industry fund such as Aware Super?

Of course, there are other factors we need to consider - as they say, the devil is in the detail - but what are the advantages and features of each? Which would be better long-term? - Harris

Good question, Harris. I turned 70 recently. As one of my old uni mates told me cheerfully "welcome to your eighth decade". So my wife and are in the process of simplification - as well as clearing out the boxes of stuff we have carted from one house to another, having our finances nice and tidy is important to us.

We're both in great health, but at this age it is very obvious health issues can and do happen, so better to simplify while we have the enthusiasm and energy. This includes looking at our SMSF.

We've found this valuable over the decades as we could hold things such as private equity investments in it. Others may like to hold property in their SMSF, but we prefer the liquidity and returns from non-property investments in our SMSF. We own property outside of super.

A lot here depends on your age and what you plan to do. Sure, if you plan to use the $200,000 to gear into property, and you are a lot younger than us, an SMSF could well be the way to go. If you plan to hold a balanced portfolio of shares, managed funds or ETFs, an SMSF sounds like a waste of time to me.

I reckon it would cost you more than $2000 to set it up, then about the same annually in running costs. It is called a self-managed fund for a reason, you have to manage it.

It drives me nuts to see people setting up an SMSF, incurring big fees, then buying a typical balanced managed fund. A large super fund, such as the one you mention, can do this for you, with many investment options for very low fees.

A key rule with money is that fees are a certain cost, returns are not certain. So if it is a non-exotic investment strategy you are after, do it for the lowest cost possible with a large, low-cost super fund manager.

Superannuation has had a busy year of reform.

Super is now paid on parental leave, the Super Guarantee is at 12% and the government passed a bill requiring employers to pay super at the same time as wages.

At the top end, earnings on balances above $3 million will also be taxed at 30% and those above $10 million at 40%.

At the bottom, the Low Income Super Tax Offset (LISTO) will rise from $500 to $810 in 2027, expanding to incomes up to $45,000.

It's a reform agenda the government believes will make the super system fairer and more sustainable.

The Association of Superannuation funds of Australia (ASFA) called it "not just a retirement savings success, but a national productivity engine".

Assistant Treasurer and Financial Services Minister Daniel Mulino said as much in a pre-recorded address to the Ecstra Foundation's Financial Wellbeing Summit.

"We want Australians to be confident their retirement savings are working for them," Mulino noted, before championing the $4 trillion held in the super sector.

On paper, the system looks stronger than ever.

The average super balance has risen to $172,834, up nearly $8000 from a year earlier.

But as the panel that followed argued, averages can hide who's really being left behind.

"It just replicates inequality"

"Do you think that the current superannuation system meets the needs of Aussies?" asked moderator Effie Zahos, former Money editor.

"The short answer is no," said Xavier O'Halloran, chief executive of Super Consumers Australia.

"It just replicates the inequality that exists in the system already."

O'Halloran cited new research from the Super Members Council showing how super has entrenched wealth divides over the past two decades.

"Back in the late 90s, early 2000s, higher-wealth people had superannuation and they've all got superannuation today. Their wealth has grown.

"In the middle, we've seen some positive change. That's the good thing about the Super Guarantee system.

"But in the lowest quartile there's virtually no growth. They didn't have super 20 years ago and they don't have super today."

Even among the second-lowest quartile, more than half fall well below the amount needed for a comfortable retirement.

And when averages are quoted, like ASFA's $172,834 figure, they mask the reality: the median balance is just $68,000 for men and $54,000 for women.

The average balance for men is also $38,000 higher than for women.

"When we talk about averages like the minister did, we miss that context," O'Halloran noted.

Wealth inequality widens

Cassandra Goldie, chief executive of the Australian Council of Social Service (ACOSS), argued the picture looks even worse when you include total wealth.

"Over the past two decades, the top 20% have seen their wealth grow by 84%, while the bottom 20% have only grown by 20%.

So the top group's wealth has increased at four times the rate of those with the least."

If you're in the bottom quintile, you might have $36,000 on average, "if you're lucky". In the top quintile, it's over $3 million. And that gap is widening.

"About 50% of our wealth holdings are in real estate, so let's talk about property taxes. The next biggest chunk (22%) is in super. So, let's talk about super reform."

Who super leaves behind

The gap isn't just about income; it starts with access.

"Income is a misleading way to approach this," said O'Halloran.

"Balances are demonstrably low for women, First Nations people and culturally and linguistically diverse communities."

He said the system fails to account for different life experiences and barriers to participation.

"We're not addressing design details that would support people facing family violence or irregular employment. There's been a real lack of attention."

That neglect has real-world consequences, said Leah Bennett, managing director of the First Nations Foundation.

"I helped reconnect an elderly man with $280,000 in super, and he was living in third-world conditions.

Even basic identification is a barrier, according to Bennett.

"Many First Nations people still don't have a birth certificate or Medicare card," she said.

"Without ID, it's hard to engage with financial services - and if you're not engaging, you're not learning how the system works."

Cultural competence is another barrier.

"Many organisations don't know how to interact respectfully with First Nations people," Bennett said.

"When there's mistrust between mob and institutions, people disengage."

That mistrust deepens when the system feels extractive, she said.

"We've contributed over $16 billion to the Australian economy.

"Yet we're forced into a mandatory super system without knowing how to participate meaningfully. We don't have the resources, tools, or education."

Since 2016, the First Nations Foundation has reunited more than $24 million in lost super with Indigenous Australians, many in remote communities.

"Mob come off country, work hard, then go home," Bennett said.

"But they don't know they have super because no one told them. They don't know they're entitled to insurance benefits like TPD. That's the cost of exclusion."

Super's unfair advantage

O'Halloran argues that Australia's $4 trillion super pool has evolved to reward those already ahead.

He cited a government review showing the top 20% receive more in super tax concessions than a person on the full age pension.

"It's perverse that we've let the system develop this way without fixing it."

Goldie agreed, describing super's tax treatment as "egregiously generous."

"It was meant to help people save for a decent retirement-not build a private wealth fund," she said.

"Now we've created a $4 trillion beast. It keeps growing, but it's not reducing inequality."

O'Halloran welcomed measures like the LISTO increase and higher taxes on multimillion-dollar balances, but said they barely scratch the surface.

"The most targeted thing we could do to cut retirement poverty is increase rent assistance.

"If you're renting in retirement, your financial stress rate jumps from 15% to 60%. That's the real inequality."

The longer-term fix, he said, is tackling the "out of control" housing divide.

Goldie said rent assistance is only part of the picture.

"The most urgent fix is lifting base welfare payments. Too many people fall through the cracks under strict eligibility rules.

"And social and affordable housing supply has collapsed over two decades. We're paying the price."

Education, inclusion and the next chapter

Closing the super gap will take more than policy tweaks; it needs cultural change inside the industry, Bennett said.

"Most super funds have reconciliation action plans with fluffy targets.

"But they're not tackling the real causes of disadvantage. That requires targeted financial education."

Communication is the missing link, she said.

"Are you talking our language? Are you explaining things in a way that makes sense for us?

"What does wealth look like for First Nations people? Retirement isn't just a white couple riding bikes or sailing through Europe.

"We have a sharing economy - a beautiful part of our culture. What matters most is each other, and retirement savings often means supporting your community."

Bennett urged funds and policymakers to invest in financial literacy programs tailored to First Nations experiences.

"We've had less generational wealth and far less access to education than most Australians.

"The system must recognise that if it's serious about inclusion."

The bigger question: what is super for?

The Financial Wellbeing Summit made one thing clear: while Australia's super system may be world-leading in size, its purpose is still up for debate.

For government, it's a story of growth, productivity and protection. For consumer advocates, it's about fairness, access and survival.

"The super system has achieved a lot," O'Halloran said. "But it's become a giant ball of savings.

"The challenge now is making sure it serves everyone - not just those who were already ahead."

Or, as one panellist put it, super may be growing, but unless equity grows with it, Australia's greatest savings story could become its biggest wealth divide.