Super reforms promise better service for retirees
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The Albanese Government’s move to introduce mandatory and enforceable service standards for all large APRA‑regulated superannuation funds has been broadly welcomed, with advocates highlighting the potential for significantly improved support and communication for members—especially older Australians—across every stage of their retirement journey.
In announcing the reforms, the Government emphasised that these measures will “improve how funds engage with their members and put member interests at the heart of service delivery.” The new standards initially target areas where complaints data have revealed the greatest need for improvement, such as prompt and compassionate handling of death benefits, fair insurance claims processes and clear, respectful communication.
Australia’s superannuation system has grown into a powerhouse, now valued at around AUD 4.1 trillion, with workers retiring on average balances of more than AUD 200,000. Despite these impressive figures, consumer advocates have raised concerns over service quality. Treasury will collaborate closely with stakeholders and regulators to draft the standards, which will be released for public consultation.
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Council on the Ageing (COTA) Australia, commended the Government’s announcement. Chief Executive Officer, Patricia Sparrow, said it is a critical and overdue move to boost member outcomes throughout the retirement journey.
“There’s no question that the standard of service older Australians, and indeed Australians of all ages, are receiving can be significantly improved,” Sparrow said. “People deserve high quality customer service from the moment they first engage with superannuation right through to their retirement phase, but we hear reports all too regularly about that simply not happening.”
Sparrow highlighted the importance of supporting people during difficult times, noting that funds must step up rather than add stress to members’ lives:
“Compassionate, clear, high-quality service is really the least we should expect from our superannuation funds every day but especially during our most vulnerable moments such as when we’re waiting for the timely payment of death benefits.”
While some funds have already taken positive steps, Sparrow pointed out that the industry’s overall customer experience has often “been left wanting.” She expressed optimism that the Government’s move will finally address the persistent issues facing many Australians.
“As our population ages, we need to be looking at measures that ensure that people can live the dignified life in retirement that they deserve to. Super funds need to ensure they are communicating clearly and in a timely way with their members all the time, to assist in planning and preparing for retirement.”
The announcement aligns with the newly legislated objective of superannuation: “to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.” It also dovetails with broader reforms in the retirement phase of super, as well as the Delivering Better Financial Outcomes package, which seeks to improve financial advice, product offerings, and transparency for consumers.
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
