Super Nation is a fortnightly column that examines, explains and analyses key issues in one of Australia's largest, fastest-growing and most important industries: superannuation.
It’s being called a silver tsunami and super funds are being urged to prepare for it.
More than 2.5 million Australians are expected to retire in the next decade, according to the Australian Government.
This was out of 23.3 million member accounts across superannuation funds regulated by the Australian Prudential Regulation Authority (APRA) at 30 June 2025.
They also represent about one in nine Aussies.
These prospective retirees hold an estimated A$1.5 trillion (US$1.05 trillion) in super, or 11% of Australia’s $4.5 trillion in retirement assets, although they represent significantly less than this proportion of members and accounts.
They are from the final wave of the wealthy and much-maligned Baby Boomer generation (born1946 to 1964) and early members of Generation X (1965-1980)
This supposedly grey-haired cohort will move from the accumulation phase, during which their balances are rising, to the pension or deaccumulation phase, when they draw down on their retirement balances over the next 10 years.
Regulators have increased their attention on retirement in recent years with calls for funds to do more to help their members once they leave the workforce.
The inference to be drawn is that while funds have supported their members well during their working years, they have taken their eye off the ball for those who are no longer working.
Concentrating minds
To refocus the super industry, the Government has announced reforms to the retirement phase in the form of the Retirement Reporting Framework and Best Practice Principles for Superannuation Retirement Income Solutions.
The Best Practice Principles provide guidance for trustees on the design and delivery of retirement income solutions, outlining steps to better understand members, design fit‑for‑purpose solutions, and engage their members on retirement income decisions.
The Retirement Reporting Framework will collect data on industry progress in the retirement phase of superannuation and drive uplift to member outcomes by creating greater transparency across the industry.
Treasurer Jim Chalmers and Assistant Treasurer and Minister for Financial Services Daniel Mulino said the release of the Framework and Best Practice Principles delivered on the Government's commitment to “uplift” the retirement phase of superannuation.
“These reforms are all about strengthening the system to deliver the best results for Australians when they retire, as well as when they’re working,” they said in a media release.
“Australia’s $4.5 trillion superannuation system is entering a critical phase, with more than 2.5 million Australians expected to retire in the next decade.
“The reforms will ensure there is as much of a policy and product focus on the retirement phase as there is on the accumulation phase.”
This should be seen in the context of the challenges of retirement, such as combining multiple income sources, such as the Age Pension and investments, considering the needs of partners and dependents, and managing risks and changes in circumstances.
“Australians need better access to information, advice, and well-rounded retirement income products to help them navigate these challenges, “ the Australian Treasury wrote in a December 2023 discussion paper.
Reforms find support
The release of the Best Practice Principles and Reporting Framework was welcomed by various bodies, including The Super Members Council (SMC), which said more needed to be done to deliver a simpler, stronger retirement for millions of everyday Australians.
SMC, which advocates on behalf of profit-to-member industry, corporate and public sector funds, said Australians approaching retirement faced a maze of complex decisions, often without the advice or guidance needed to make the best choices.
They included determining how much super they needed, Age Pension eligibility, investment returns, and drawdown rules.
Chief Executive Officer Misha Schubert said this highlighted with fresh urgency the need to fast-track long-awaited financial advice reforms and to design simpler pathways into retirement that were easier for everyday Australians to navigate.
Simplifying the advice and guidance framework would ensure Australians received timely, trusted assistance without unnecessary cost or complexity.
“With the coming silver tsunami of more than two million Australians racing towards retirement, we need to make that shift easier and more intuitive,” Schubert said in a media release.
Modelling showed a typical new retiree with super could miss out on up to $136,000 over their retirement because of the daunting complexity of Australia’s retirement system.
This should be seen in the context of data from SMC in 2024 showing the median super balance at retirement was $200,000 now, but growing to $500,000 when the average 30-year-old leaves the workforce.
Super funds must actively engage members approaching and in retirement, but “a one-size-fits-all approach will not work”, according to the Financial Services Council (FSC), whose members include retail super funds.
FSC CEO Blake Briggs said the Principles reinforced that Australians should expect a high level of engagement and service from their fund.
“Superannuation is not ‘set and forget’ and trustees are accountable for the quality of their engagement strategies and the retirement outcomes they deliver,” he said in a media release.
The Principles also highlighted the value of progressing the Delivering Better Financial Outcomes Tranche 2 reforms to ensure financial advice was more accessible and affordable to all Australians.
These reforms include replacing complex Statements of Advice with simpler Client Advice Records, clarifying what financial advice can be offered for ‘free’, and allowing funds to ‘nudge’ members to think more about their super and make better decisions.
Tranche 1, delivered in 2024, focused mainly on reducing red tape around advice fees and conflicted remuneration.
The Association of Superannuation Funds of Australia (ASFA) also got behind the reforms because they increased transparency and improved retirement incomes, but it was cautious about being too prescriptive.
ASFA represents more than 100 for-profit and profit-for-member super funds and service providers.
“ASFA recommends ensuring that the Principles exhibit appropriate language, flexibility and adaptability, and avoid unnecessary prescription and rigidity which could present complexities in their application,” the peak body wrote in its submission.
