Australia’s superannuation system is doing much of what it was designed to do – help more Australians retire in a stronger financial position. The federal government’s 2026 Intergenerational Report projects that our maturing super system will support higher retirement incomes and reduce reliance on the Age Pension.
But Superannuation Guarantee contributions don’t necessarily mean you’ll be retirement ready when you stop working. While compulsory super contributions provide a strong starting point, making the most of your super requires active decisions about how your money is invested, how it fits with your other income sources and how you draw on it in retirement.
That’s where considered retirement planning can make a difference to your financial future.
Why default super may not deliver the retirement outcome you want
Compulsory superannuation helps you build retirement savings, but it doesn’t guarantee that your savings are being managed in a way that suits your circumstances and retirement goals.
Research commissioned by the Financial Services Council (FSC), The Impact of Superannuation Choice on Retirement Outcomes, examined the potential benefits of taking an active role in decisions about how your super is invested, rather than simply remaining in a default investment option.
Its modelling found that a member who switched to a lower-fee index investment option at age 30 could accumulate up to $1.2 million more by retirement than someone who remained in the default option. Switching to a high-growth investment option at the same age could result in an additional $690,000 more at retirement.
These figures are based on specific modelling assumptions, not guaranteed outcomes, but they illustrate how investment fees and asset allocation could affect your retirement savings in the long run.
That doesn’t make a default option a poor choice. Default MySuper products can provide an important starting point, but they aren’t designed around your individual needs, and may not remain appropriate as your age, circumstances and goals change.
Retirement planning isn’t just about accumulating a super balance. It’s about making decisions that support the retirement lifestyle you want. Relying on compulsory contributions alone has three limitations:
- Your default investment option may not match your investment timeframe or risk tolerance.
- Your super arrangements may not be structured appropriately for your circumstances, including tax considerations.
- Your balance alone doesn’t tell you how much income you could sustainably draw throughout retirement.
A financial planner can review your existing super arrangements, including investment performance, fees and tax considerations, and help you evaluate alternative options suited to your financial goals.
Four ways to make more of your super
If you’ve left your super on autopilot, it may be time to take a closer look. Making the most of your super starts with understanding your current arrangements and reviewing them in the context of your overall financial plan. These are four areas worth looking at.
1. Review your investment option
Most super funds offer a range of investment options, from conservative to high-growth.
Conservative options generally hold more cash and fixed interest, which tends to mean smaller swings in value but lower expected long-term returns. Growth options hold more shares and property, which can offer higher expected returns but larger falls along the way. Balanced options typically offer a mix of defensive and growth assets, although allocations vary between funds.
The right mix for you depends on several factors, including your investment timeframe, financial goals and tolerance for risk.
If you’re in your forties, you generally have more time to ride out market volatility, while those approaching retirement may want to review their exposure to higher-risk investments.However, age alone shouldn’t decide your option. Your broader financial circumstances matter too.
The investment landscape can be complex to navigate. It’s worth working with a financial planner who can review your investment option, fees, insurance cover and long-term performance and recommend adjustments as your circumstances change.
2. Consider your overall financial position
For most Australians, super forms a significant part of their retirement savings, but it shouldn’t be considered in isolation. You may also have personal investments, property, business assets, potential Age Pension entitlement or outstanding debts that influence your financial position and retirement plans.
It’s especially important for women to regularly assess their financial position, as they tend to retire with smaller super balances. According to research from the Association of Superannuation Funds of Australia (ASFA), women aged 60–64 had a median super balance approximately 26% lower than men in the same age group.
A financial planner can assess how your super fits alongside your other assets, liabilities and potential income sources. At RFS Advice, we also have a team dedicated to financial planning for women.
3. Check your beneficiary nominations
Your superannuation doesn’t automatically form part of your estate when you die. Who receives your super death benefit depends on your fund’s rules, any valid beneficiary nomination you’ve made and the relevant superannuation laws.
It’s important to keep your beneficiary nominations up to date, particularly after major life changes such as marriage, divorce, the birth of a child or the death of a nominated beneficiary.
Some binding beneficiary nominations expire, commonly after three years, while others can remain valid indefinitely, depending on your fund’s rules. It’s worth checking which type you hold and whether it’s still current. A binding nomination that lapses needs to be renewed to stay binding.
4. Develop a retirement income strategy
Many retirees choose to draw an income through an account-based pension, which offers flexibility in how much you can access but doesn’t in itself protect against outliving your savings.
A retirement income strategy can help you determine how much to draw from your super each year, how to manage investment risk and how your super income could work alongside other sources, including the Age Pension.
Financial planning remains important throughout retirement, helping you balance the income you need to support your lifestyle with the need to make your savings last.
Choosing a financial planning partner for the long term
Ownership structure isn’t the only thing to consider when choosing a financial adviser, but it’s worth understanding because you’re not just choosing an adviser, you’re choosing the business that stands behind them.
RFS Advice is an adviser-owned financial planning firm on the Gold Coast, built and run by the advisers who work with clients directly across wealth creation, retirement planning, and aged care, with specialist advice available for women and high-net-worth families.
At RFS Advice, we aim to be a long-term financial planning partner to our clients, providing advice that evolves as your circumstances and priorities change. If you’re looking for an ongoing relationship with a team that can support you through different stages of your financial journey, book a call with one of our advisers today.
Frequently asked questions
Adviser-owned financial planning means the firm is owned and controlled by the financial advisers or principals who run the business, rather than by a larger financial institution. This gives the firm’s owners greater control over its advice philosophy, client service model and long-term direction.
An institution-backed financial planning firm is connected to a larger financial organisation, such as a bank, insurer or financial services group. It may provide access to centralised research, technology and compliance support. However, advice is generally delivered within the parent organisation’s framework.
Yes. Regardless of ownership structure, financial advisers providing personal advice to retail clients must comply with the same legal and regulatory obligations, including acting in the client’s best interests and prioritising the client’s interests where a conflict arises.
Ownership and licensing arrangements can influence how a firm operates, its service model and, depending on its licence and product governance arrangements, the products and strategies its advisers can recommend. It doesn’t necessarily determine the quality of advice you’ll receive, but understanding who you’re working with – both the individual adviser and the business behind them – can help you understand what to expect from the relationship.
You can ask the adviser directly or check their financial services guide for information about the firm and its Australian financial services (AFS) licensee. You can also search the Financial Advisers Register on ASIC’s Moneysmart website to check who the adviser is licensed by and their authorisation details.
General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
