Panel discussion on addressing the retirement challenge through the lens of a super fund. Requires an “uplift in advice processes” among super funds that will be “systems-led”.

Recent changes at the nation’s two largest super funds, AustralianSuper and Australian Retirement Trust signalling that funds are rethinking the multi-faceted retirement challenge and the management structure to support it.

It has to be asked: how will the retirement system initiatives announced by Treasurer Chalmers move along the many super funds that are lagging in the development of their retirement income strategies?

Complex member communication could deter people from engaging with their retirement savings, but for super funds, maintaining simplicity in their messages has become one of the most difficult things to do.

Treasurer Jim Chalmers has unveiled an extensive suite of policy reforms targeting the retirement phase of superannuation, including a legislative change that will allow funds to provide new retirement product features like money back guarantee.

It’s “quite realistic” that many super funds will take too long to build the basics of a retirement income strategy, and the system might need a licencing regime to make sure members are getting the best service.

Presentation at IBR Asset Allocation Strategies Forum, outlines the opportunities and challenges in unlisted assets. The entry ticket: excellent governance.

The IMF says that super funds’ chunky allocations to illiquid assets could be a danger to markets during stress events, but there’s little evidence to support their fears of systemic risk.

Presentation at IBR Post Retirement Australia, explores how best to create investment structures and portfolios for retirees.

Presentation at IBR Post Retirement Australia, outlines the case for a Retirement Licensing Regime as the key next step in the development of an effective retirement system.

Complex member communication could deter people from engaging with their retirement savings, but for super funds, maintaining simplicity in their messages has become one of the most difficult things to do.

We estimate that 50,000 Australians who are retiring over the next year may not be able to access an ABP because they do not meet minimum application requirements of their superannuation fund.

Superannuation funds are getting bigger, with major consequences for one sector in particular.

The country’s two largest superannuation funds, AustralianSuper and Australian Retirement Trust, are pulling away from rivals.

We estimate that 50,000 Australians who are retiring over the next year may not be able to access an ABP because they do not meet minimum application requirements of their superannuation fund.

A little-known administrative hurdle is prohibiting tens of thousands of poorer Australians from accessing tax-free account-based pensions, according to analysis by The Conexus Institute.

The grand bargain at the heart of Australia’s superannuation system, forfeiting wages to fund a tax-advantaged retirement, is potentially being undermined by a widespread but under-the-radar practice by superannuation funds.

Super Consumers Australia says the bonus is more like a tax payback – and you may even need to hand it back.

Funds need to keep moving forward to ensure that all retirees receive a suitable retirement strategy. We offer thoughts on how the industry might continue to progress.

Given every MySuper option passed the latest Your Future Your Super performance test, is the test effective and can it work more in members’ interests?

The latest round of Your Future Your Super performance test results have reignited debate about the test design and to what superannuation products the test should be applied to.

An update on current state of product labelling and asset categorisation identifies lack of consistency amongst funds and researchers.

The national effort to have superannuation funds do more to assist members transition to retirement has made progress over the past 12 months, but key policy and commercial challenges remain.

Review of and reflections on Retirement Conference, by David Bell and Geoff Warren. Key theme: momentum building, but there is a long way to go.

Given large dispersion amongst funds in progressing their retirement income strategies, establishing a retirement licensing regime would help get the super industry progressing in the right direction.

A retirement licensing regime would help ensure that the strategies that do come to market are up to standard and delivered by funds that are committed to serving their retirees.

Jeremy Cooper argues that a lack of clear guidance by regulators is discouraging some super funds from offering retirement-orientated products at a time when an increasing number of people are retiring.

The large dispersion across funds along these dimensions creates fascinating challenges for funds, service providers, policymakers and regulators.

Response to recent survey undertaken by APRA and ASIC on development of retirement income strategies reveals funds need to do better on meeting their obligations.

Reflections on the key themes of the Fiduciary Investors Symposium held at the University of Toronto including AI and its applications, and the importance of governance for a strong pension model.

As the first generation of compulsory superannuants reaches the end of the accumulation phase the investment teams that have helped get them there will need to shift gears and integrate into a broader retirement function.

Reflections from Investment Magazine Fiduciary Investors Symposium, penned by David Bell and Geoff Warren: hubris, risk, YFYS an ever-present, and evolving business models.

With retirement a huge challenge for super funds, it is interesting to consider how well funds have structured their organisational leadership and governance to meet the challenge.

Stepping out of the return-based objectives in accumulation, super funds have found themselves grappling with a different beast when investing for retirement.

The concept of a single-metric, backwards-looking performance test implemented retrospectively is deeply flawed, and the current Treasury review is an opportunity to design a better performance test with better outcomes for members.

Recent research by The Conexus Institute identifies significant dispersion in the operating environment for Australia’s superannuation funds. This impacts aspects of fund investment models including internalisation, private assets and offshore investment teams.

Australia’s policy of stapling workers to their first workplace pension scheme for life bears many of the characteristics of the lifetime model floated by the UK government. The Australian market is evolving and this impacts the role of the employer.

A growing number of funds have warmed to the status quo after tweaking their strategic asset allocation to make sure they don't fail. However, a number of academics and researchers argue that the current test is not in members' best interests.

Submission to Treasury on design options for the annual superannuation performance test. Proposes a three-metric test for all multi-asset portfolios, with the need to pass at least two of the three metrics

Initial industry reflections on the Your Future, Your Super consultation paper. The paper explores design options for the annual performance test.

The retirement industry is currently operating in a kind of purgatory where business, policy and regulatory challenges are holding back the provision of good retirement outcomes for all retirees.

Calls for a package of policy and regulatory solutions to address three major problems (weak competition, difficulties for many retirees to engage and make effective choices, and business case challenges for super funds).

Submission to Senate Economics References Committee. The submission by the Conexus Institute focuses on four of the matters listed in the Terms of Reference (TOR) where we believe that we can assist the Committee in their deliberations.

Submission to Senate Economics Legislation Committee. The Conexus Institute supports the legislation of an objective of superannuation and the objective detailed in the Superannuation (Objective) Bill of 2023.

Submission to Treasury by the Conexus Institute. At the foundation of this submission is a series of 13 essays that explore topics of potential interest to policymakers and put forward recommendations for consideration.

Super Consumers Australia says retirees deserve some peace of mind on whether their fund is doing a good job managing their retirement income.

Australia’s biggest industry funds, AustralianSuper and Australian Retirement Trust, are dominating super fund inflows, while private sector players AMP, Insignia, Colonial First State and BT have been losing funds, according to a new report by the Conexus Institute.

All super funds are being called on by the government and regulator to make more progress on providing retirement income solutions to members.

Research from The Conexus Institute finds while a handful of big profit-for-member funds rank well for both assets and growth, ESG-focused funds Australian Ethical and Future Super stand out for attracting above-system flows.

In FY23, the top eight funds, led by AustralianSuper, took 80% of natural flows. AustralianSuper saw a $9 billion switch, down from $14.5 billion. APRA data shows a broader market slowdown in switching.

In the first of a series of articles analysing the latest APRA superannuation asset data, The Conexus Institute conclude that the eight largest profit-for-member funds increased their market share in FY23 by about 2 per cent. Meanwhile, the merged Care Super/Spirit Super looks set to be inducted into the so-called “big fund club”.

As members shift from saving to spending in their super, investment teams will likely face new demands. Different retirement goals may require separate portfolios and managers. Aware Super and TelstraSuper shared their strategies.

Australia’s biggest super funds are quietly plotting their path into playing a bigger role in financial advice, committing to more personalisation and better education to help build retirement confidence among members alongside advisers.

As Treasury releases its discussion paper on regulation of the retirement phase, The Conexus Institute argues that an affordable trustee-directed mechanism should be facilitated so that all super fund members can receive some retirement guidance.

Highlights from the ASIC Annual Forum, 21–22 November 2023.

Industry super funds are under immense pressure to rethink their traditional low-cost operating model as their loyal members now demand significantly more service - and the government and regulators are prepared to wield a big stick.

Margaret Cole, deputy chair of APRA, has made clear the prudential regulator is satisfied that the Your Future Your Super performance test is having its intended impact.

When superannuation was just a twinkle in the eye of Treasurer Paul Keating, in the years after the floating of the dollar, the Australian economy was vulnerable to sharp swings in global capital flows.

The CIO Is still considered the shot caller, but the fundamental changes that the super system is experiencing means funds could adopt a more diffuse operational model and power will shift away from the “masters of the universe”.

Unlisted assets can enhance super fund portfolios. Benefits include access to a broader opportunity set that affords better diversification and more return-seeking opportunities. Excellent governance is the entry ticket to these opportunities.

Financial advisers shouldn’t feel that super funds moving into retirement advice will outflank them. Advisers will survive, and likely prosper, as they have all the ingredients to provide the crème de la crème of retirement advice.

To adopt best practice in retirement, super funds need to make it a top priority, resolve their organisational structure, implement strong executive-level leadership and consider the creation of a retirement committee.

More regulatory pressure on valuation practices means big funds run the risk of missing out on deals. But with Australia now at the forefront of defined contribution pensions, should GPs get with the program?

There are five possible pathways to retirement solutions, but only two are in place with the missing pathways all involving some form of trustee direction. Trustees will be pivotal in helping provide straightforward solutions to members who are disengaged or unprepared to pay for financial advice, leaving independent advisers to deal with those who want a comprehensive and highly personalised solution.

Review and reflections from the 2023 Retirement Conference, co-hosted by The Conexus Institute and Conexus Financial. By David Bell and Geoff Warren.

Treasurer Jim Chalmers is expected to kick off a public consultation about retirement income settings, as the landmark intergenerational report shows superannuation will take significant pressure off the age pension over the next four decades.

The 2023 Retirement Conference, a joint initiative of the Conexus Institute and Conexus Financial, showcased an industry that is moving forward on retirement, but is being directed to do more.