COTA Australia has welcomed new scrutiny of the superannuation industry following the release of APRA and ASIC’s 2025 Retirement Income Covenant Pulse Check, which shows the gap widening between funds that are improving retirement outcomes and those that are falling behind.
The Pulse Check release coincided with a new UNSW report warning that Australia’s superannuation system risks leaving vulnerable members behind – especially those with limited savings, fragmented work patterns or complex retirement transitions.
COTA Australia Chief Executive Officer, Patricia Sparrow, said the findings of both highlight why stronger action to support older Australians is needed.
“It’s clear that when it comes to supporting older Australians through the retirement phase, many super funds still need to do better – even though the Retirement Income Covenant has been in place for three years,” Ms Sparrow said.
“We welcome the Federal Government’s commitment to lift transparency in 2026 and the clear signal that the retirement phase must improve.”
COTA particularly welcomed the Government’s investment in upgrading MoneySmart’s retirement guidance, tools and calculators.
“Older Australians need clear, impartial and jargon-free information so they can make confident decisions about their futures,” Ms Sparrow said.
“Today’s retirees face a completely different environment to the one the super system was designed for more than 30 years ago. Retirement is not a single event – it is a series of life stages,” she said.
“People transition out of work over longer periods, move in and out of employment, and many ‘unretire’ because their circumstances change. Funds must be able to support members through all of these phases.”
COTA also backed calls for stronger use of data and digital capability across the sector.
“Only 15 per cent of super funds rate their understanding of their members as better than ‘good’. That tells us the system still lacks the insight needed to give people the right guidance at the right time,” Ms Sparrow said.
“Funds need a much clearer picture of their members’ financial and personal circumstances if they’re going to genuinely improve retirement outcomes.”
COTA also welcomed APRA’s commitment to include retirement products in its 2026 Comprehensive Product Performance Package, and said it looks forward to Treasury’s work on improving retirement product comparability.
“Older Australians deserve a super system that helps them make informed choices, protects them from poor-performing products and reflects the way retirement actually works in 2025. It’s clear we’re moving in the right direction but there is still much more to do.”
Media contact: Alana Mew, 0419 929 722 or Tamara Kotoyan, 0430 291 890