Shaping Super 2024 

Analysis of superannuation maturity in a time of consolidation, competition, and complexity.

Some 30-plus years after the introduction of the Superannuation Guarantee, the Australian super system has grown to become one of the leading pension systems worldwide. However, despite the range of strong outcomes that have been delivered by the system, more can be done. The system is currently experiencing a period of increased complexity and competition which will force trustees and the system to evolve. 

In this inaugural report we examine the Australian superannuation system and the superannuation funds in the system. We assess the current market position using supporting data and consider the forces shaping system and fund level maturity going forward. Rather than comparing individual funds, this report focuses on the overall market. The report then proposes a practical roadmap for funds and policymakers when setting strategic priorities for 2024 and beyond.

In a market where half the remaining superannuation funds are expected to close in the coming years, funds and the third-party providers that support them will need to develop a plan to 'thrive' instead of just seeking to 'survive'.
Richard Dunn - Lead Author and Principal, Mercer Australia

Ten priorities for Super funds in 2024

Drawing on this position and these trends it is clear that superannuation funds must continue to evolve. We consider the following 10 priorities to be critical for funds seeking to thrive in 2024:

1. Focus on member outcomes, by passing the performance test and engaging with the new SPS 515.
2. Focus on retirement income while not letting ‘perfect’ get in the way of taking positive small steps.
3. Exceed expectations for insurance by pushing harder on affordability and claims management.
4. Develop a strategy to help, guide and advise members, following the Quality of Advice review.
5. Review portfolio construction by exploring alternative and sub-asset classes and integrating ESG.

6. Review operating models to ensure a suitable mix of insourcing and outsourcing.
7. Develop processes to govern internal teams – who watches the watchmen?
8. Continue to simplify an drive efficiencies with a focus on legacy and unwanted complexity.

9. Unlock the power of data and AI to deliver a more personalised member experience.
10. Ensure there is a strategy to thrive through a differentiated value proposition.
We hope this report proves to be a useful tool in delivering improved member outcomes while navigating the ever-evolving superannuation fund environment in 2024.  
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