Getting more from your super in retirement
Australia's superannuation system is about to undergo significant changes designed to improve retirement outcomes for the 2.5 million Australians expected to retire over the next decade.
What’s being introduced?
The government has released two key initiatives to strengthen the retirement phase of superannuation:
The Retirement Reporting Framework
Best Practice Principles for Superannuation Retirement Income Solutions
These reforms address a critical gap in Australia's $4.5 trillion superannuation system, ensuring the retirement phase receives the same policy and product focus as the accumulation phase.
The Best Practice Principles
The Best Practice Principles provide clear guidance for superannuation trustees on designing and delivering retirement income solutions.
They outline specific steps funds can take to:
Better understand their members' needs
Design fit-for-purpose retirement solutions
Engage members effectively on retirement income decisions
These principles aim to support industry progress towards best practice and drive trustees to innovate in developing better retirement solutions for their funds’ members.
The Retirement Reporting Framework
The Retirement Reporting Framework will collect comprehensive data on industry progress in the retirement phase of superannuation.
The Australian Prudential Regulation Authority (APRA) will be responsible for collecting and publishing this data.
This framework will create greater transparency across the industry by:
Providing insights on fund offerings and member outcomes
Tracking progress on improvements across the sector
It will also drive better outcomes for members through increased accountability.
Building on existing obligations
These measures build on the obligations already introduced through the Retirement Income Covenant.
The government has indicated that both initiatives will be reviewed regularly to ensure they remain fit for purpose and reflect evolving industry practice.
The reforms are designed to work together to help Australians achieve higher-quality retirement outcomes after a lifetime of saving, consistent with the objective of superannuation.
Broader superannuation reforms
These retirement phase reforms are part of the government's broader superannuation agenda.
Recent changes include:
Legislating the objective of superannuation
Lifting the superannuation guarantee rate to 12%
Introducing payday super from 1 July 2026
The government has also:
Expanded the Performance Test to more products
Legislated financial reporting requirements that align with public companies
Committed to introducing mandatory member service standards.
What this means for you
The reforms aim to improve transparency and drive innovation in retirement income products.
This should result in:
Better product solutions
Clearer information
More effective strategies to help you make the most of your superannuation in retirement
You can expect to see improved engagement from your superannuation funds regarding retirement income decisions, along with products that are better designed to meet your specific needs.
Getting prepared
With more Australians approaching retirement, these reforms come at a critical time.
The increased focus on the retirement phase should provide retirees with greater confidence in their superannuation arrangements.
If you're approaching retirement or already retired, it's worth reviewing your current superannuation arrangements to understand how these changes might affect your retirement income strategy.
Speaking with a professional adviser can help you navigate these reforms and ensure your retirement planning remains on track.