Tele-claims replaces traditional paperwork with compassionate, phone-based claim lodgement and support for those claims that are relatively straightforward. Members’ beneficiaries are guided through the process by a dedicated case manager from start to finish, with most delays now limited to cases where the fund has difficulty reaching the family.

Head of Member and Adviser Help Belinda Nicholson said: “Tele-claims can finalise straightforward claims for a member’s family in days rather than weeks. That can make an enormous difference at such a difficult time.”

Aware Super has also invested in a range of initiatives to improve the claims experience for all beneficiaries, including strengthening claims triage, simplifying documentation and processes, increasing proactive contact with beneficiaries and improved support for vulnerable claimants.

“While tele-claims is currently suitable for about 10 per cent of claims we receive, we are constantly looking for ways to simplify and streamline the claims process for all families,” Ms Nicholson said.

“And regardless of what sort of claim it is, every claimant is treated with care and compassion by our experienced team.”

Over the past year, Aware Super has paid $632 million in death and disability insurance claims to members and their beneficiaries, finalising 4,152 claims and paying an average $12 million a week.

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Lisa Kay

Brighter Super has expanded its investment menu with two new low-cost indexed share options, giving advisers greater flexibility when constructing investment portfolios for clients with Brighter Super accounts.

Available since 1 October 2026, Indexed International Shares and Indexed Australian Shares options provide a passively managed way to invest in Australian or international shares. Both options have investment fees and costs of 0.08% p.a. and no transaction costs¹.

The options will be available to members with Accumulation, Pension or Transition to Retirement (TTR) Pension accounts, and can be combined with other Brighter Super investment options to tailor exposure to Australian and international share markets.

Brighter Super Chief Member Officer Lisa Kay said the new options reflected feedback from advisers seeking more indexed investment choices.

“Advisers have told us they want greater flexibility to tailor international and Australian share exposure within their clients’ Brighter Super accounts. We listened, and these options respond directly to that feedback,” Ms Kay said.

“These new options provide additional building blocks that advisers can combine with other Brighter Super investment options to build a portfolio suited to each client’s needs.

“They also give members another way to access international and Australian share markets, while our existing actively managed International Shares and Australian Shares options will remain available.”

“For Brighter Super, this is about strengthening our investment offering so members have more choice in how they invest their retirement savings.”

Ms Kay said the options were developed following extensive consultation with external financial adviser groups, market research conducted with Investment Trends, investment modelling, and competitor and fee analysis.

Indexed International Shares follows a weighted combination of the MSCI World Index in Australian dollars, with 20% hedged and 80% unhedged exposure. Indexed Australian Shares is designed to perform in line with the S&P/ASX 300 Accumulation Index. Both investment objectives are stated before investment fees and taxes.

The new options complement Brighter Super’s existing Indexed Balanced option, which invests across a mix of asset classes. As single-asset-share options, they provide members and advisers with distinct building blocks for a broader investment strategy.

“We recognise that members and advisers have different preferences about how investments are managed,” Ms Kay said.

“Expanding the menu gives them more ways to put their investment strategy into practice within Brighter Super.”

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Kirby Rappell

Leading superannuation research house SuperRatings estimates that the median balanced option will have recorded a -0.4% fall over the month of September. This loss was largely driven by the underperformance of Australian equities, which fell over 3% as sticky inflation prompted another increase to the cash rate by the Reserve Bank of Australia (RBA). Meanwhile, US markets were comparatively flat, with strong performers in the AI and technology space helping to offset weakness across the broader market.

The median capital stable option is also estimated to have declined by -0.4% in September, while the median growth option is estimated to fall by -0.5%.

Pension returns were also negative for the month, with the median balanced pension option down an estimated -0.5%. The median growth pension option and capital stable pension option are also estimated to fall -0.5% over the month.

“Stubborn inflation, concerns around economic growth and elevated energy prices are likely to remain headwinds for Australian shares over the coming months. This is also complicated by the anticipated tightening bias for the RBA. International equities face many of the same pressures, but have been supported by continued investor optimism around AI” commented Kirby Rappell, Director of SuperRatings. “However, the sustainability of those gains depends on whether companies involved in the AI ecosystem are able to deliver on the levels of growth anticipated by markets.”

“Superannuation remains a long-term investment, and members may have many years, even decades, to ride out the short-term ups and downs of the market” Mr Rappell continued. “Diversification remains valuable, with super funds investing their members’ money across a wide range of asset classes, sectors, and global regions to help them achieve positive long-term financial outcomes. It’s worth noting that since the bottom of the global financial crisis in 2009, super funds have returned 7.8% per annum to members invested in the median balanced option. SuperRatings encourages members who are considering making changes to their investment strategy, or those uncertain whether their strategy aligns with their current circumstances and stage of life, to first speak with their fund or a trusted professional financial adviser.”

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Robbie Campo

HESTA has announced lower investment fees and costs across most of its core investment options for the 2025/26 financial year.

The changes, reflected in HESTA Super’s updated 30 September Product Disclosure Statement, show investment fees and costs for the default MySuper Balanced Growth option, where most of the Fund’s more than one million members are invested, have fallen 10%. Over the past four years, investment fees and costs for this default option have dropped by more than 28%.

Investment fees and costs for the Balanced Growth option have been reduced from 0.58% to 0.52%. Over the past four years, these fees have fallen from 0.73% to 0.52%.

HESTA CEO Robbie Campo said the changes reflected the Fund’s ongoing commitment to delivering value for its members as it continues to grow.

“In an environment where costs are rising across the economy, we’re very pleased to have been able to again lower what members pay. Every dollar we save our members in fees is a dollar that stays invested and keeps working for their retirement,” Ms Campo said.

“Alongside lower investment costs, we’ve also reduced insurance and income stream account fees this year so members at all stages of life can see the benefit. In some cases, members will be paying hundreds of dollars less in total fees compared to last year.”

HESTA Chief Investment Officer Sonya Sawtell-Rickson said the reduction in investment fees was the result of the continued focus on ensuring members can benefit from HESTA’s scale, internalisation and long-term partnerships.

“This is the fourth straight year of lower investment fees for members in our default product, supporting future retirement outcomes. As we grow, we’re proud to reduce what members pay while maintaining a portfolio designed to perform across market cycles,” Ms Sawtell-Rickson said.

“That combination of strong, long-term returns and disciplined cost management can make a meaningful difference to the retirement balances of our members.”

For a HESTA member with an indicative $80,000 balance invested in Balanced Growth, the latest reduction is worth around $48 a year.^[1] On top of the reductions over recent years, the member benefit is worth approximately $168 a year, compared with investment fees and costs disclosed four years ago at 30 September.

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Deanne Stewart

Australians are on track to retire with significantly larger super balances than previous generations, but many risk missing out on the retirement they’ve worked hard for if they’re too afraid to spend their savings.

As the Intergenerational Report projects, median super balances will more than double from around $200,000 in 2024 to almost $450,000 in the next decade^[1], new modelling from Aware Super shows retirees could be spending an extra $24,700 in their first year of retirement.^[2]

Aware Super’s modelling found a couple retiring in 2036 with median super balances and owning their home outright could increase their first-year retirement income from $63,700 to $88,400 a year (in today’s dollars) by adopting a “maximised to last” retirement income strategy.

This strategy shows you how much you can comfortably spend each year while giving you confidence your money will last throughout retirement.

Aware Super CEO Deanne Stewart said the modelling showed how understanding how much you can spend and how long your super could last would support better retirement outcomes for Australians.

“For decades, Australians have been taught the importance of saving, now we need to help them feel confident to spend those savings in a way that supports the retirement they worked so hard for,” Ms Stewart said.

“That means focusing on providing our members with the right guidance, tools and solutions to use those savings well, throughout their retired years.”

Ms Stewart said “fear of running out” of money or FORO was still a major impediment to Australians enjoying their retirement, with Aware Super data showing almost half of new retirees planning to draw down only the legislated minimum income.

“Digital tools like Aware Super’s Retirement Manager help our members create a personalised income and spending plan, and are already giving them the confidence to draw down more of their savings in retirement without the fear of running out,” Ms Stewart said.

While 54 per cent of members who opened an Aware Super retirement income account typically chose to draw down more than the minimum income amount, this increased to 63 per cent for those members who used Retirement Manager.

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Notes:
[1] $450,000 balance was deflated to today’s dollars using CPI at 2.5% p.a. over 10 years
[2] Shown in today’s dollars, deflated using CPI at 2.5% p.a. $63,700 is based on minimum drawdown rates and $88,400 is based on “Maximised to last” drawdown strategy where retirement account is projected to deplete at age 95. Projection incorporates Age Pension (September 2026 rates) based on a homeowner couple, with the member and their partner both aged 67, the partner assumed to hold the same Retirement Income account balance as the member and combined personal assets of $50,000. Percentage admin fee is 0.16% and Fixed fee is assumed to be $52 p.a., increasing in line with assumed price inflation of 2.5% p.a. Investment returns are assumed to be CPI + 3.25% p.a., with CPI assumed to be 2.5% p.a. This example is for illustrative purposes only and is not intended to provide a guarantee on outcome. It is a broad illustration of the steps a member could take, but the actions appropriate for an individual will vary depending on their personal circumstances. Based on current regulatory requirements and laws, including tax rates, which may be subject to change. Retirement income and investment earnings are not guaranteed. Payments will cease once the account balance is depleted.

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There is clearly a significant gap between the stock image of retirement and the reality most Australians are facing.

Internet searches of retirement often surface joyful images of cruises, golf, beaches and bowls, but new HESTA insights indicate that’s simply not what most Australians expect their retirement to look like.

The survey of HESTA members found just one-in-nine (11%) believe the retirement they see in media reflects the retirement they see for themselves^[1].

HESTA Chief Experience Officer Lisa Samuels said the nature of retirement was changing, and the system needed to modernise so more Australians could retire on their terms. This includes removing barriers discouraging pensioners from working more and giving super funds the ability to proactively help members transition into the right retirement products.

“There is clearly a significant gap between the stock image of retirement and the reality most Australians are facing into. Retirement is different for everyone and Australians are looking for support to retire their way,” Ms Samuels said.

“More than 2.5 million Australians are expected to retire over the next decade and right now, many are just focused on getting through next week. And for those beyond retirement age, we are seeing large numbers of people wanting to return to work later in their lives to support their finances or retain connection to their communities.

“It’s in this environment that we need to look at further ways to modernise the system so that it can help more Australians retire the way they want to. These proposed reforms range from practical fixes for pensioners in the workforce to new powers for funds to guide members into suitable retirement products at the right moment.”

The call to focus on building a modern retirement system comes amid ongoing cost-of-living challenges, with one-third of all respondents saying cost-of-living pressures had affected their ability to manage their super.

The survey also found the average age members want to retire is 66, a year prior to when Australians are eligible to claim an age pension but six years after they can begin accessing their superannuation savings.

“When we asked members for words that come to mind when thinking about their future retirement, the most common weren’t ‘cruises’, ‘golf’, ‘travel’ or even ‘relaxed’. Instead, leading the way were ‘comfortable’, ‘time’, ‘happy’, and ‘work’, alongside several references to feeling ‘anxious’. This is the real life experience many Australians expect,” Ms Samuels said.

Key changes HESTA is calling for to modernise the retirement system so it is simpler and more flexible, include:

• Support pensioners to work more and keep more of what they earn, by removing employment income from the Age Pension Income Test.
• Prompt members to specific retirement products, to support timely transition to the retirement phase of superannuation.
• Allow members to top up their retirement income streams with income from work.
• Establish data sharing between funds and government agencies, to unlock data to deliver better advice, engagement and services.

———-

Notes:
[1] Based on a survey of 437 HESTA members conducted in May 2026.

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Mano Mohankumar and Ian Fryer

Despite concerns around inflation and ongoing geopolitical tensions, super funds were up in August with the median growth fund (61–80% growth assets) gaining 0.9%. That lifted the return over the first two full months of FY27 to 1.1%.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, says the healthy return for August was driven by domestic and global share markets, which in aggregate account for about 55% of a typical growth portfolio. “Despite some volatility towards the latter part of August, over the full month, developed market international shares advanced 2.5% in hedged terms led by the US. Markets were supported by strong corporate earnings and the tech sector regained momentum after some AI-related companies had been sold down in July. The Australian dollar appreciated over the month, which pulled the 2.5% hedged return back to 0.5% in unhedged terms. On average, super funds have about 70% of international shares unhedged. Emerging markets also finished higher, returning 1.3%.

“Australian shares gained 1.6% over the month, which fell short of developed international markets, but it was still a solid result, with the resources sector leading the way and offsetting weaker performance from financials. In a volatile month for bond markets, performance was mixed with Australian bonds down 0.2% and international bonds up slightly at 0.2%.”

The table below compares the median performance to the end of August 2026 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. All risk categories have generally met their typical long-term return objectives, which range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Long-term performance remains above target

MySuper products have been operating for over 12 years, so when considering performance, Mohankumar says it’s important to remember that super is a much longer-term proposition.

“Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.9% p.a., which is still ahead of the typical objective.”

The chart below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

By Mano Mohankumar, Head of Superannuation Investment Research and Ian Fryer, General Manager.

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Kirby Rappell

Following a subdued start to the financial year in July, super funds experienced stronger growth in August with leading superannuation research house SuperRatings estimating that the median balanced option returned 0.8% to members over the month.

“Despite persistent inflation and ongoing geopolitical uncertainty, the first two months of FY27 have seen super funds deliver a solid start to returns for their members,” commented Kirby Rappell, Director of SuperRatings.

The median growth option grew by an estimated 1.0% in August, while the median capital stable option is estimated to rise a more modest 0.4%.

Similar performance was also delivered to pension members, with the median balanced pension option increasing by an estimated 0.9%. The median capital stable pension option is estimated to have returned 0.4% over the month, while the median growth pension option is estimated to have returned 1.0% for the same period.

Despite the positive start, rising commodity prices resulting from the ongoing US-Iran conflict, as well as expectations of rising interest rates at home mean the investment outlook for the coming months remains unclear. Members that are considering making changes to their investment strategy should keep in mind that superannuation is a long-term investment and they may have many years or even decades ahead in which to remain invested.

“Super funds have generated pleasing results to members in the opening months of the new financial year,” continued Mr Rappell. “However, moderating consumer demand, ongoing geopolitical instability, the prospect of further rate hikes and continued volatility within the artificial intelligence sector all have the potential to create investment headwinds. While the current environment is undoubtedly a challenging one, members should be encouraged by the fact that super funds have delivered members a return of more than 7% per annum since the introduction of the superannuation guarantee in 1992. SuperRatings encourages members concerned about market volatility to reach out to their fund or a trusted professional financial adviser to help ensure any changes to their investment strategy are aligned to their best long-term outcomes.”

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Debby Blakey

HESTA has announced it will be reducing administration fees on income stream accounts and slashing the minimum balance requirement for starting one.

Income stream accounts are designed for Australians in retirement, providing a regular income from super in a tax-free environment.

The fixed administration fee for all of the Fund’s retirement products will be reduced by 16.7% to $65 per annum, while the asset-based fee will be cut from 0.23% to 0.18% per annum^[1]. The changes mean that a HESTA Retirement Income Stream member with a $50,000 balance will see the total of these two fees fall by more than 18% to $170 per annum.

It is the latest in a series of changes delivering better value for HESTA members, with most investment fees reduced last year^[2] and an average 12% drop in insurance fees^[3] across all cover types delivered on 1 July this year.

The $108 billion Fund has also made the decision to sharply cut the current $10,000 minimum balance requirement for starting a HESTA Income Stream in order to make it more accessible. A residual balance of just $250 will be required to process pension payments.

HESTA CEO Debby Blakey said the changes would make a real difference for members.

“These are significant changes for our members in, or about to enter, retirement,” Ms Blakey said.

“We understand the challenges many Australians face in retirement and it’s terrific to be able to deliver lower fees at a time when persistent inflation is driving cost-of-living pressures.

“We are also pleased to be able to offer income stream accounts to even more members, so they have the opportunity to take advantage of tax-free investment returns.”

HESTA continues to advocate for changes^[4] that support modernising the retirement system, including the ability to top-up income stream accounts.

“We want to support more flexibility in retirement and in line with that focus, continue to advocate for changes that would allow retirees to top up their retirement income streams with money earned from work. Right now retirees who return to work need to open a new super account, which is a needless inconvenience that often comes with a financial cost,” Ms Blakey said.

The changes to fees and minimum balance will be effective from 30 September 2026.

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Notes:
[1] The fee reductions relate to HESTA Retirement Income Stream (RIS), HESTA Transition to Retirement (TTR) Income Stream, and HESTA Term Allocated Pension (TAP) members.
[2] investment fees reduced last year.
[3] 12% drop in insurance fees
[4] HESTA continues to advocate for changes

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Karen Robinson

When a marriage or relationship ends because of the death of a parent, the question of who is a ‘stepchild’ for superannuation purposes has changed.

In recent years, decisions of the Australian Financial Complaints Authority (AFCA) and the Courts have shifted the legal landscape, which has implications for everyday Australians planning their estates.

In stepfamilies, estate planning is rarely as simple as ‘who gets what’. Instead, couples must grapple with how to fairly distribute assets between the surviving member of the couple and the children from a previous relationship.

In all Australian states the law recognises the right of a stepchild, sometimes conditional, to challenge the Will of a step-parent. This often occurs where a step-child’s natural parent dies before their step-parent but has contributed to the accumulation of the step-parent’s wealth. The step-child may believe that a portion of that wealth should ultimately pass to them.

But what about superannuation?

While these benefits can form part of a deceased estate, they are often instead paid directly to a superannuation member’s dependants. This is not limited to financial dependants and includes, amongst others, adult children and stepchildren.

Recent decisions by AFCA and the Courts have changed the interpretation of who is treated as a stepchild on the death of a superannuation member. The accepted view is now aligned with how the meaning of step-child is interpreted by the Court in Will challenges. This aligns with changing community expectations and the evolution of traditional families in Australia.

Who counts as a stepchild?

A stepchild is the natural or adopted child of your spouse or de facto partner. It is estimated that more than 1 million Australians belong to a stepfamily.[1]

In 2011 the ATO issued guidance that a child ‘ceases to be stepchild of a step-parent when the relationship between the child’s natural parent and the step-parent ends. This means, on the death of the natural parent or the divorce of the natural parent from the step-parent.

It follows earlier cases where the Courts came to this conclusion. In these circumstances the stepchild becomes a former stepchild.

However, the current thinking has changed. The accepted view now is that the relationship between a stepchild and step-parent does not automatically end on the death of the natural parent.

Stepchild versus a former stepchild

A person’s status as stepchild or former stepchild is important because it determines whether they are eligible to be a beneficiary of a superannuation death benefit. Under superannuation laws, a stepchild is eligible, but a former stepchild is not.

If a stepchild becomes a former stepchild then their only means of benefiting directly from a former step-parent’s superannuation death benefit is if they can demonstrate they were a financial dependant of, or lived in an interdependent relationship with, their former step-parent at the time of this person’s death.

AFCA in its current approach to superannuation death benefit complaints recognises the relationship between a stepchild and step-parent continues where:

1. the marital or de facto relationship between the step-parent and natural parent of the stepchild existed at the time of the natural parent’s death, and
2. a parental relationship between the step-parent and stepchild has since been maintained.

An AFCA decision last year found the four adult stepchildren of the member remained as stepchildren despite their natural parent having died before the step-parent and despite them being financially independent of the step-parent.

The AFCA panel accepted that even though their stepmother had dementia the relationship was maintained and the stepmother continued to treat them as her stepchildren.

What is a parental relationship?

Is exchanging Christmas cards or the occasional phone call with a step-parent enough?

The Courts and AFCA look beyond sporadic contact to determine whether a genuine ‘relationship of affinity’ continued to exist between a step-parent and stepchild.

In 2024 AFCA upheld a decision by a superannuation trustee to distribute a deceased member’s superannuation death benefit between the member’s biological child and three stepchildren, finding one stepchild had maintained an ongoing relationship of affinity with the deceased. However, two other stepchildren were excluded because they no longer had a real, substantive relationship with the deceased and were therefore not considered eligible beneficiaries.[2]

While there is no bright-line test, occasional Christmas cards or infrequent phone calls alone are unlikely to be sufficient. Instead, the evidence should demonstrate a genuine, ongoing relationship in which the stepchild continues to be regarded and treated as part of the family.

As AFCA has acknowledged, proving the existence of such a relationship can be challenging, particularly where family relationships have deteriorated over time or disputes arise following the payment of a significant superannuation death benefit.

So how do you evidence the relationship? While it is difficult to evidence visits, telephone calls and practical support for a step-parent with such things as groceries and doctor visits, keeping a record of family gatherings, letters and emails can be helpful. Often individual statements from self-interested parties documenting the nature of the relationship may be all that is available. In the 2024 AFCA decision mentioned previously, the in-person attendance by the stepchildren at their step-parent’s funeral during COVID when attendance was severely restricted carried some weight towards establishing the nature of the parental relationship.

How do you create certainty?

The best way to create certainty is to put in place, and regularly review, a valid binding death benefit nomination.

If you are married and have stepchildren, and you have nominated your spouse as your beneficiary, it’s important to revisit that nomination if your spouse dies before you.

Often these nominations lapse every 3 years so it’s worthwhile checking. A nomination that has lapsed, whether because of time or because the beneficiary you have nominated has died, becomes non-binding and may carry little weight in a superannuation fund trustee’s decision.

A valid binding nomination ensures your superannuation death benefits are paid to your nominated eligible superannuation dependants or to your legal personal representative (your executor, where you have a Will) in accordance with your wishes. This provides you with certainty as to the recipient of these benefits rather than relying on the superannuation fund trustee to decide who should receive your benefit, particularly where complex family dynamics are involved.

It is also important to remember that every superannuation fund has its own governing rules around eligible beneficiaries and binding death benefit nominations. These rules can differ between funds, so they should always be checked.

Finally, people often assume their superannuation death benefits will automatically be distributed under their Will, but this is often not the case. If you have stepchildren, obtaining tailored estate planning advice is critical. An experienced estate planning lawyer can ensure your Will and binding death benefit nomination work together to ensure your wishes are carried out and reduce the risk of expensive disputes after your death.

By Karen Robinson, Senior Estate Planning Lawyer

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