Australian super funds struggle to upgrade digital services without raising
Australian superannuation funds now confront a pressing challenge: enhancing digital services for members without increasing costs. This shift comes as retirement balances grow and more retirees demand assistance, raising member service to a third critical performance metric alongside investment returns and fees.
Superannuation coverage has expanded dramatically, now encompassing over 90% of Australian employees, a rise from just 30% four decades earlier. Total assets under management now surpass $4 trillion, with $2.9 trillion held in APRA-regulated funds. The Superannuation Guarantee contribution rate rose to 12% from July 2025.
Members approaching retirement, those with balances nearing $250,000 and $500,000, are increasingly active, often seeking guidance as they near their retirement years. Around 40% of retirees had more than $250,000 in super at retirement in 2025, while more than half are projected to have over $500,000 in today’s dollars by 2035. More than 3 million Australians aged 55 to 64 will retire within the next decade, intensifying the need for customized financial advice and income planning solutions.
While digital tools have broadened access, they have also raised member expectations for tailored experiences. Andrew Boal, a partner at Deloitte, explained that funds must carefully balance technology investments with fee constraints. He stated, “the challenge is to fund technology, data and process improvements quickly enough to meet member expectations while keeping fees under control.”
APRA’s October 2025 report, Delivering member outcomes into the future, emphasized the importance of operational resilience and retirement support. The regulator cautioned that service improvements must not lead to higher fees, advising trustees to align spending decisions with member priorities. Boal identified a key dilemma: insufficient investment risks outdated systems and poor user experiences, whereas poorly managed upgrades can inflate costs without delivering clear advantages.
Over the coming five years, larger funds are expected to adopt digitized service models, spreading modernization expenses across multiple years. Key focus areas include product innovation, streamlined administrative processes, and compliance enhancements. Some funds may turn to outsourcing and technology partnerships to reduce initial costs, though they must maintain control to safeguard member data and ensure outsourced services remain aligned with their best interests.
Investments in security, such as data privacy, fraud prevention, and cybersecurity measures, will not produce immediate returns but are essential to meet regulatory standards and member trust. Trustee boards will require tangible progress, including faster service delivery, reduced complaints, and stronger member engagement. Boal emphasized the need for advanced data analytics to refine services, alongside compliance and risk management.
