Superannuation funds enjoyed another strong year in 2024, as fund assets grew to over A$4 trillion. At the same time, we saw the ASIC flexing its enforcement muscle, putting all funds “on notice” that member servicing lapses would not be tolerated.
So what does 2025 hold? SS&C has identified the key themes we believe will significantly influence the super fund industry over the year ahead.
- Member servicing remains a key priority.
Members must be sure they can count on their super funds when it matters. The challenge for funds is to anticipate member needs and deliver high-quality service at scale. Funds can leverage artificial intelligence (AI) to glean insights from huge volumes of member data and turn those insights into tailored advice. Funds must also meet members “where they are,” with flexible service models and omnichannel access that enable members to interact as they prefer.
- Regulators are watching.
Excellent member service is not just a competitive necessity. It is a regulatory imperative. Citing “widespread” delays in payments on death and disability claims, regulators say they will hold funds to account for not meeting their obligations.
Cybersecurity also remains a high regulatory priority. Funds are prime targets for cybercriminals and could face steep fines for data breaches due to weak controls. Funds must comply with APRA’s CPS234 and should consider even stronger measures, such as the global ISO 27001 standard or the SOC 2 security framework.
- Advice continues to go digital.
With 23 million members needing advice and too few advisors to provide it, funds are increasingly looking to bridge the “advice gap” by digital means—without the need for one-on-one conversations. Digital advice solutions can strengthen member engagement and satisfy regulators that the fund is responsive to members.
- Financial wellness and education strengthen member engagement.
Members are looking to their superannuation funds for more than a secure retirement. They need guidance to enhance their overall financial well-being. In response, funds are incorporating financial education and literacy into their offerings. Today’s technologies make it possible to deliver tailored education at scale, leveraging data aggregation, automation, gamification and analytics.
- Supporting members post-retirement is a big opportunity.
Superannuation has always been about saving for retirement. Now, regulators are putting pressure on funds to help members make their money last after retirement. This may involve developing new products or partnering with life companies to combat longevity risk. These products introduce new complexities that require higher levels of advice.
- There’s no such thing as too much information
Members are going to their mobile apps more and more to dig into the details of their funds, even as the sheer amount of information keeps growing. Transparency, look-through capabilities and ease of navigation are imperatives.
Members want to know their funds are investing in ESG-positive companies but also want assurances that an ESG focus will not compromise their outcomes. AI solutions can help funds better explain the balance of ESG factors and investment returns to members.
Members are watching performance, too. Funds that fail APRA’s annual performance testing risk being closed. Optimizing efficiency through technology is essential to help hold costs down and bring performance numbers up.
- Keep an eye on geopolitical and global economic trends.
Wars in Ukraine and the Middle East, the lingering impact of COVID-19, political upheaval in Europe, the rise of India and the looming influence of China have all had material impacts on investment results. The near future holds the possibility of “trade wars” over tariffs and uncertainty over interest rates and inflation. As super funds increasingly invest in overseas markets, it’s important to balance a global view with a regional perspective to distinguish between risks and opportunities.
- Opportunities for innovation and differentiation are out there
Super funds are always looking for ways to differentiate, especially in attracting the next generation of accumulators. With around 400 million monthly users, the metaverse is growing in popularity—according to online gaming data, 80% of active users are under 16 years of age, and 41% of millennials are interested in metaverse-powered live events. Funds that can make the leap of imagination into immersive virtual reality technologies stand to connect with a growing, digitally savvy audience.
The through-line in all these themes is the importance of a modern, intelligent technology infrastructure to keep pace with member expectations and regulatory demands and to position funds to deliver superior outcomes.
To prepare for the coming year’s challenges and opportunities, download the full "The Key to Staying Ahead in 2025: Themes Shaping the Future of Superannuation" report.
Mary Payne, Chief Product Officer APAC SS&C Technologies, and Dan Renoux, Head of Product Initiatives SS&C Technologies, also contributed to this article.
