In this guide
The sole purpose of superannuation is to provide income for retirement, not that you’d notice.
After more than 30 years of our compulsory super system, super funds have enabled Australians to grow their retirement savings to levels their parents and grandparents could only dream of.
What funds have not done so well is to guide their members through the process of retiring, provide them with retirement products that are fit for purpose and give them the confidence to draw down on their savings without the fear of running out of money.
The government tried to give funds a push along to develop better retirement products and services with its Retirement Income Covenant (RIC) but, since its introduction in 2022, progress has been glacial.
Innovation in the retirement phase of super has been so slow that the last of the Baby Boomer population bump, currently aged 61, is likely to be retired well before their super fund catches up with them.
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In just one example, only a handful of funds have developed and actively promote a lifetime income product designed to provide retirees with income for life and the security that comes with knowing their money won’t run out.
So it’s welcome news that the research and ratings group Chant West has teamed up with retirement educator Bec Wilson to give funds a nudge and consumers a clear signal about which funds are retirement-ready.
Retirement tick of approval
Chant West and Bec Wilson’s Epic Retirement Institute have launched a new consumer-focused assessment of the range of services and support super funds offer to pre-retirees and retirees. Using 18 key criteria, funds must satisfy at least 12 of the 18 to earn an ‘Epic Retirement Tick – powered by Chant West’.
Tellingly, only six of around 65 funds in Australia today, including 15 major players, earned a tick of approval in the inaugural assessment. “We need to see more, as Australians headed for retirement deserve better,” says Wilson.
The six funds (including the number of criteria they met in brackets) were:
- Australian Retirement Trust – Super Savings (12)
- Aware Super (13)
- Brighter Super (13)
- Hostplus (14)
- TelstraSuper (12)
- UniSuper (12).
The 18 measures of a fund’s retirement readiness include investment options tailored to the retirement phase, lifetime income products, drawdown guidance, advice pathways, calculators and modelling tools, education and engagement strategies, and service delivery measures such as pension payment timeliness and call centre performance.
As you can see from this list, there is a lot more to selecting a great retirement fund than fees and performance. Unfortunately, these tend to be the focus, especially when you are growing your retirement savings during your working life.
You can see a list of the 18 criteria and which ones were met by each of the six funds awarded a tick at the end of this article.
Navigating the transition to retirement
In many ways, it’s understandable that super funds have been slow to build their retirement offerings. It’s not easy.
Chant West general manager Ian Fryer says most people in accumulation phase are put in their fund’s default option and they will probably do fine. “But in retirement phase, people’s situations are all very different and funds need to provide more than just a default.”
In most cases, a fund’s default option is an account-based pension with a Growth, Balanced or Conservative option, almost identical to the same options in accumulation phase.
For example, Fryer says retirees have an opportunity to take advantage of their tax-free position, but they may also need help to feel confident about withdrawing more than the minimum annual amount from their pension account. And even if their fund offers good products, including a lifetime income product, people may need advice to help put the pieces of the retirement income puzzle together and make the most of their personal financial situation.
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It’s not until retirement that the choices people make about their super also need to factor in things like whether they own their home or rent, whether they have income-producing assets outside of super or will be eligible for a full or part-Age Pension.
Fryer says people may need help and guidance setting up a pension account so they don’t blindly select an investment option that might not be right for them.
Dual-purpose ticks
Chant West already rates super and pension funds and holds annual awards, including an award for the Pension Fund of the Year. It also works closely with super funds to drive engagement and action on the retirement front.
Aware Super won Chant West’s most recent award for Pension Fund of the Year, while SuperRatings gave UniSuper its top honour – both funds received an Epic Retirement Tick.
Ian Fryer says the new Epic Retirement Tick is designed to engage consumers more broadly, with a simple, transparent benchmark to help them understand what a ‘good’ fund looks like as they move towards retirement.
The initiative has two purposes:
- It shows you at a glance which funds are doing well and, for those who want to delve deeper, what they are doing well and what still needs improvement
- It sends a message to the funds themselves and hopefully an incentive to prioritise the retirement process.
Fryer says both regulators in this space, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), have been talking to funds to get them to move faster. “Hopefully, this initiative will provide further incentive to move quickly.”
Fryer says the Epic Retirement review will be conducted once a year, although a follow up will be done in November this year because a couple of funds were close to an overall tick when the first survey was done in August and may get over the line.
What to do next
Wilson says there are three things that pre-retirees and retirees can do after reading their report.
- If you’re with a fund that gets a tick, take advantage of the services on offer to help you build the confidence you need to thrive.
- If your fund isn’t getting a tick, reach out to them and ask about their retirement initiatives and show them you’re watching them closely. “That kind of pressure from members can spur real change,” she says.
- After doing the above, assess whether your fund is the right fit for your next stage and is ready to serve you well in retirement. If not, look for one that is.
“The goal is simple: make active choices that set you up for success,” she says.
| Main criteria | ART – Super Savings | Aware Super | Brighter Super | Hostplus | Telstra Super | UniSuper |
|---|---|---|---|---|---|---|
| Investments: Performance of 50/50 option | ||||||
| Investments: Performance of 70/30 option | – | |||||
| Investments: Different portfolios for pension | – | |||||
| Fees: Administration | – | – | ||||
| Lifetime product | – | – | – | |||
| Drawdown strategies | – | – | – | – | – | |
| Intra-fund advice | ||||||
| Simple retirement planning: Individual | – | |||||
| Simple retirement planning: Household | – | – | – | – | – | |
| Comprehensive advice referrals | ||||||
| Tools and calculators | – | – | ||||
| Digital advice for retirement account commencement | – | – | – | – | – | |
| Retirement-focused nudges | – | |||||
| Retirement seminars or structured education | – | |||||
| Service levels for pension set-up and changes | – | – | ||||
| Retirement bonus (or top quartile performance) | ||||||
| Contact centre service | – | – | – | |||
| Efficiency of pension payments |
Source: Epic Retirement Tick 2025 outcomes
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