Over the past three decades, Australia’s biggest superannuation funds have helped workers grow their savings into the trillions but many of those same members are now walking away once they stop full‑time work. As people approach retirement, they tend to want tailored guidance on how to draw down their money, manage tax and plan for aged care and that is where super funds have historically fallen short. The major industry players built their success around scale, low fees and strong long term investment performance, not around understanding individual member circumstances in detail.
Specialist wealth platforms are stepping into that gap. In the 2025 financial year alone, one leading platform attracted more than $7 billion in net inflows from switching super money while another drew about $4 billion, largely from retirees and pre‑retirees moving onto adviser led platforms that promise more choice and a higher touch service. At the same time, almost all of the largest super funds recorded net outflows from member exits. The biggest fund, with around $400 billion under management, saw more than $250 million leave. Other major funds lost about $400 million, $1.3 billion and roughly $2 billion each as members shifted their balances elsewhere. Industry funds still dominate the accumulation phase while people are working but retail platforms increasingly control the retirement phase because financial advisers prefer tools that let them customise portfolios and reporting.
The federal government’s Delivering Better Financial Outcomes package was meant to help super funds catch up by allowing them to offer simpler, cheaper advice through a new tier of lesser qualified advisers, giving millions of members easier access to guidance. That reform now appears delayed after high profile advice scandals at two investment groups left around 12,000 Australians collectively out of pocket by about $1 billion, raising fresh concerns about conflicts of interest and weak consumer protections. Until there is more clarity on safeguards and timing, super funds are relying on fully qualified in house advisers and referral partnerships with external firms, which can work well for complex cases but often cost members thousands of dollars a year and still raise questions about adviser independence.
In the meantime, the money continues to move. The super sector seems determined to lift its advice and service capabilities and industry bodies still expect the government to progress its advice reforms but every year of delay looks like another year where billions flow towards adviser led platforms instead of staying inside traditional funds. If that trend continues, big super funds may remain the default home for working Australians’ savings while the real battle for retirement dollars plays out on modern wealth platforms that appear better aligned with how retirees want to manage and spend their super.
