Australia’s super system is now dealing with a wave of older members actively shifting their savings, often away from long-established industry funds and into newer wealth platforms that promise tailored advice and slick technology. For years many large funds focused on investment performance and low fees while putting less emphasis on personalised guidance and retirement support. As the system matures and more members move from saving to spending their super, that gap in service is becoming harder to ignore, especially for retirees who want timely help, clear answers and easy access to advice.
In the year to last June, members pulled more than $2 billion from two of the country’s largest industry super funds, pushing both into what the sector calls “competitive outflow” where more money exits than arrives from switching members. At the same time technology-led platforms such as Netwealth and HUB24 are attracting older Australians who want dedicated advice, digital tools and flexible investment options. One fund is focusing on what it describes as widespread mis-selling of retirement products, alleging that aggressive lead generators and advisers are steering members out of large, relatively conservative funds and into high-risk schemes, including failed products worth around $1 billion. The other is investing in digital advice and retirement calculators but argues it still needs legal changes first promised in 2024 so funds can contact members with tailored advice without breaching anti-hawking rules.
All this is playing out as regulators and consumer groups warn that many big funds seem slow to adapt to a retiree-heavy membership. Reports from key financial watchdogs suggest a clear divide between funds that are innovating for retirement outcomes and those making only small, incremental tweaks. Consumer advocates say underinvestment in basic member services over many years means retirees now struggle to get through to call centres or secure practical help and they want the government to impose minimum service standards before the problem grows. At the same time the government is weighing tougher limits on super switching to prevent another round of product failures like Shield and First Guardian, which could protect some members but also make it harder for them to move if they are unhappy. How quickly Canberra moves on advice reforms, switching rules and service standards looks likely to shape not just who wins the battle for members but whether retiring Australians get the support they expect from a now multi-trillion-dollar system.
