The second edition of TAL's What I Wish I knew About Retirement report, surveying some 2000 pre-retirees and retirees, found retirees are much more satisfied with their retirement when acquiring lifetime income products compared to those who left their super in accumulation (81%) and who withdrew lump sums (66%).

Yet, only 38% of pre-retirees were familiar with those products and 87% were eager to find out more if their super fund offered them, and among current retirees, 66% said they would have been interested if such products had been clearly offered when they retired.

TAL general manager, retirement and wealth Shaun Bransdon said the findings show a disconnect between engagement and action on retirement planning.

"People care deeply about their financial futures and they're paying attention - but we don't see that in the actions they're taking to plan for this critical life stage. Many feel they don't have all the information they need," Bransdon said.

"Super funds are stepping into this opportunity, building on the trust developed with members over their working lives: 64% of pre-retirees say they trust their fund to advise on retirement needs.

"Options like guided settings, information on how different retirement income options work together with the Age Pension, and tools that help them make decisions that suit their circumstances, could help more Australians approach retirement with confidence."

Further, the report noted only almost half of pre-retirees expect to have less spending power in retirement, with one in three (33%) expecting their retirement to last more than 20 years. However, less than half expect their super to run out before then, and 31% taking no action to prepare for retirement.

The trend is exacerbated by the lack of engagement with super, as 21% of pre-retirees don't know what to do with super, 31% are unsure about options to access super, and 37% don't know how to draw it down, the report said.

"Retirement income strategies work best when flexibility is combined with certainty. And our research shows this is increasingly important to people," Bransdon said.

"Account-based pensions provide growth potential and capital access for active years, while lifetime income streams support spending confidence and can reduce Age Pension reliance.

"Without certainty about future income, even retirees with adequate savings may default to conservative spending. Product design can help - giving people confidence to enjoy their retirement while knowing their essential needs are covered."

The Comfort or Collapse: Why Balance Size and Design, Not Just Returns, Decide Retirement report highlights the "fragility" of retirement outcomes for Australians amid longer life expectancy, rising living costs and market instability.

The research said retirees with larger balances can withstand higher withdrawals, but "overly conservative allocations virtually guarantee erosion."

"If someone has a low superannuation balance, one option is to adjust spending. Our study finds that when retirees target a moderate level of spending rather than a more comfortable lifestyle, the portfolio is more likely to remain sustainable over ten years, regardless of the asset allocation," Monash Centre for Financial Studies associate professor Ummul Ruthbah said.

"Another important consideration is maintaining some exposure to equities. Our capital market assumptions suggest that bond-only portfolios are unlikely to generate optimal returns relative to the level of risk taken over the long term.

"Retirees with less than $250,000 face a high likelihood of exhausting their superannuation within a decade if they target a comfortable lifestyle. At balances above about $400,000, the chance of sustaining income rises to near certainty, regardless of portfolio design."

The findings from the research are substantiated by the Retirement Standard published by the Association of Superannuation Funds of Australia (ASFA), where a comfortable retirement super balance will require $630,000 for singles and $730,000 for couples.

Meanwhile, Monash Centre for Financial Studies doctor Trinh Le also compared investment performance between equities and bonds during retirement but highlighted that retirees with small savings can't fund higher spending targets, regardless of their strategies.

"Mixed equity-bond portfolios, which are investment strategies combining stocks (equities) and bonds (fixed income), provide the most consistent outcomes for modest balances," Le said.

"All-equity strategies deliver higher average ending balances but carry sharper drawdown risks, while bond-heavy portfolios virtually guarantee capital erosion when withdrawals are set at comfortable levels."

Further, the analysis also exposes a deeper structural challenge regarding gender gaps and policy implications, as women approaching retirement hold balances 20-30% lower than men.

"For median female retirees ($212,000), even a balanced portfolio still carries material chances of exhaustion within a decade, while men with median savings ($283,000) face far more secure outcomes," Ruthbah said.

"This gap has profound implications for retirement adequacy and policy design. It underlines the need for measures to boost women's superannuation savings, whether through targeted contribution incentives, reforms to address career breaks and pay disparities, or enhancements to the Age Pension safety net."

The study said retirees can consider a "flexible" withdrawal strategy by reducing or postponing withdrawals from their super during periods of significant market decline, rather than relying on a fixed withdrawal rate regardless of investment performance.

Allianz Retire+'s The two-chapter retirement report highlighted that many retirees can afford a comfortable retirement but are hesitant to spend and often delay critical financial decisions to achieve better retirement outcomes.

The behavioural cost is clear as the research demonstrated around 700,000 retirees leave their superannuation in accumulation after retiring, costing individuals up to $136,000, while around half of account-based pension holders withdrew only the minimum required, leading many to live more cautiously than their savings would allow.

The 'Two-Chapter Retirement' framework, developed by the insurer in the whitepaper, reveals retirees develop more uncertainty with caution, fear and complexity in the later stages of retirement.

A consistent preference for flexibility over commitment helps explain the low adoption of strategies perceived as hard-to-unwind, even when they materially improve long-term outcomes, the report said.

While traditional retirement income planning focuses on sustaining target income levels, it does not resolve retirees deeply held concerns, including outliving their retirement savings, for overly cautious and constrained spending.

"What we see is not a result of financial illiteracy or inadequate saving. These are clients who are well resourced and understand their position and yet are still reluctant to act," Allianz Retire+ chief executive David Kane said.

"The constraint is behavioural, and no amount of additional information or projections are likely to help. Instead, advisers need a fresh approach which reframes levels of commitment and stresses the exit ramps in any retirement income strategy.

"The retirement system is getting more complicated, and many people aren't aware of products that can give them guaranteed income. Combined with natural hesitation about large financial decisions, this is leaving many retirees unclear on their spending capacity and holding them back from plans that could help them enjoy the retirement they've worked hard for."

Kane said to build "genuine confidence", financial advisers must recognise that clients are not just managing finances; they are managing uncertainty about the future. However, he added longevity risk often puts advisers in a difficult place.

"Longevity is the one major retirement risk advisers can't meaningfully diversify away. While markets can be modelled and managed over time, traditional asset allocation strategies can't insure against the risk of outliving your savings," Kane said.

"Guaranteed lifetime income is not a product preference, it is a structural planning tool that helps advisers discharge their duty of care by securing essential income for life, and in doing so, gives clients the confidence to enjoy the years they can without fearing the years they can't."

Hence, Allianz Retire+ said recognising the two-chapter mindset will be essential as it shapes how clients respond to advice, perceive risk and evaluate strategies from the outset.

Viewing retirement planning through this lens allows advisers to better support clients as they balance the desire to live well today with the need to remain secure tomorrow.

"New-era retirement income solutions offer flexible access to capital and growth with downside protection not seen in older-style annuities," Kane continued.

"Advisers who can help their clients distinguish between what is genuinely irreversible and what merely feels that way will materially shift their clients' willingness to act and will ultimately improve both their clients' financial and emotional security."

The new offering meets the requirements of an Innovative Retirement Income Stream (IRIS) and provides access to concessional Centrelink treatment when used to purchase a lifetime pension account.

This adds to the current range of lifetime income solutions from other providers, including Allianz Guaranteed Income for Life (AGILE) and Challenger annuities.

HUB24 chief operating officer Craig Lawrenson said the new offering will allow advisers to deliver better outcomes for their clients.

"Choice and flexibility are fundamental to a trusted superannuation system, enabling advisers to deliver more personalised advice, strengthening engagement and outcomes, and driving ongoing innovation across the industry," Lawrenson said.

"Advisers need access to solutions that enhance productivity and simplify the delivery of complex advice.

"An example is HUB24's innovative multi-step transitions capability that enables advisers to execute complex strategies simultaneously, from account establishments to recontributions."

Meanwhile, TAL general manager of retirement and wealth Shaun Bransdon said TAL is pleased to be supporting the new solution.

"Australians who have started utilising innovative lifetime income solutions as part of their retirement income are already demonstrating more confidence in drawing down their retirement income at higher rates compared to those without lifetime income," Bransdon said.

Additionally, HUB24 is aiming to launch a lifetime pension account in the second half of 2027.

The announcement follows Colonial First State's expansion of its retirement offerings through a multi-partner alliance with Challenger, Generation Life and BlackRock.

It comes as MLC also celebrated hitting a $500 million milestone on MLC Expand, describing it as the "fastest growing IRIS solution."

AMP, which also offers retirement income products via AMP Super and North platform, stated they are "pleased" to see uplifts like this across the retirement segment.

"Our industry needed to step up to help Australians be confident about their retirement," AMP chief executive Blair Vernon said.

"AMP has led the market in bringing these retirement income solutions to market, and while no other provider offers the range of solutions we do, we are pleased to see others following our lead.

"We will continue to innovate and take the market forward as we expand our retirement offers."

Developed with Challenger, Generation Life, and BlackRock, the partnerships transform product-led approaches to a "whole-of-life" retirement model for lifetime income solutions combining fixed, CPI and investment-linked annuities.

For Challenger, CFS is integrating innovation retirement income solutions (IRIS) and the full suite of annuity capabilities.

Meanwhile, Generation Life's investment-linked IRIS will be integrated onto FirstChoice and investment bonds onto FirstChoice and CFS Edge, which will be brought forward by BlackRock's investment capabilities to deliver those products.

CFS members will also benefit from BlackRock's experience delivering LifePath Paycheck in the US - an integrated target date strategy which provides eligible participants the ability to purchase a guaranteed income stream for retirement payable by third-party insurers selected by BlackRock.

The rollout will begin with the introduction of the Retirement Income Optimiser on the FirstChoice platform, as well as a Pension Bonus feature for eligible CFS members in August, with further solutions to be introduced over the next 12 months.

AMP, also offering retirement income products via AMP Super and North platform, stated they are "pleased" to see uplifts like this across the retirement segment.

"Our industry needed to step up to help Australians be confident about their retirement," AMP chief executive Blair Vernon said.

"AMP has led the market in bringing these retirement income solutions to market, and while no other provider offers the range of solutions we do, we are pleased to see others following our lead.

"We will continue to innovate and take the market forward as we expand our retirement offers."

Meantime, this same week MLC was celebrating hitting the $500 million milestone on MLC Expand, saying it is "becoming the fastest growing IRIS solution".

"This is a significant milestone for MLC Expand and shows the demand we're seeing from financial advisers for MLC Retirement Boost," MLC Expand chief executive Liz McCarthy said.

"The way that Australians think about retirement is changing and the demand for this solution is a testament to that. People want more personalisation and flexibility in their retirement planning and MLC Retirement Boost gives them this, while increasing the potential of super for more people and potentially creating higher retirement income, from their first super contribution."

MLC Expand also has a partnership with Challenger as well as TAL.

Commenting on its new partnerships, CFS Super chief executive Kelly Power said the new offering transforms the perception of retirement.

"CFS has built its reputation on being a leader in retirement, and this expansion reflects a material capital commitment to supporting Australians across their entire retirement journey by providing the most comprehensive whole-of-life offering in the market," Power said.

"By bringing together best-in-class global investment capability, local market-leading lifetime income expertise and tax-effective structures, this integrated offering is designed to meet the increasingly complex financial needs of Australians.

"It recognises that retirement is no longer a single event, but a long-term financial journey that requires different solutions over time."

Challenger chief executive and managing director Nick Hamilton added that the alliance brings real significance beyond partnership mechanics.

"Australia has been very successful at helping people accumulate super, yet far less effective at helping them convert those balances into income they can actually depend on," Hamilton said.

"CFS is embedding lifetime income at scale, and this collaboration tackles one of the hardest and least-solved problems in the retirement system - how to turn savings into income for life."

Further, Generation Life chief executive Felipe Araujo said the Australian retirement system is transforming, where advice is filling the gap in introducing retirement products for retirees.

"Generation Life is proud to be selected as a partner of choice by CFS to help co-develop next-generation wealth management and retirement solutions. Australia's retirement system is entering a new phase, where advice delivery is keeping pace with the increasingly dynamic needs of Australian retirees," he said.

"This alliance represents one of the first truly integrated retirement ecosystems of its kind in Australia, bringing together income, tax efficiency and intergenerational wealth planning in a more connected way to better support Australians through retirement and across generations"

BlackRock head of Australasia Jason Collines said: "CFS has been a longstanding whole portfolio partner for BlackRock, and we are proud to continue supporting its MySuper LifeStage portfolios."

"Working alongside Generation Life, we look forward to contributing to the next phase of growth as CFS expands the retirement toolkit for advisers and members, and moves towards more integrated, end-to-end retirement solutions that help more Australians experience financial wellbeing."

Speaking at the Financial Standard Advisers Big Day Out (ABDO) in Sydney, Hillier said the 90% figure could be used by the client for travel, retiring early, helping children with their first homes, supporting the community or having access to better health care.

He suggested advisers could bucket the needs of their clients in five categories for retirement: liquid, living, lifestyle, later and legacy.

The liquid bucket would have short-term needs of the client held in cash plus a little extra for emergencies, the living bucket would include recurring living expenses generated by the Age Pension and lifetime income, the lifestyle bucket would capture discretionary spending invested for long-term growth to maintain standard of living, the later bucket would fund needs in the future, and finally the legacy bucket to include if the other buckets are full.

"One of my strongest wishes professionally is that we can actually address each of these individually, because you fill them from left to right and then you find out wait I still have 'X' left over. Now I can actually pass that legacy on," Hillier said.

Instead of just waiting until the very end to see what is left over Hillier said this strategy allows clients to take control of their retirement.

"Let's actually be more purposeful about retirement and including that legacy to give to give our clients the confidence to achieve their dreams and also their family's dreams," he said.

In a direct response to the Residential Aged Care Accommodation Pricing Review, the Federal Budget announced it will aim to incentivise construction of up to 5000 aged care beds a year for aged care residents and protect equity of access for them.

Specifically, the Budget will allocate $606.5 million over four years from FY27 to introduce new capital subsidies for aged care providers who build or expand residential accommodation, deliver up to 20 additional Specialist Dementia Care Program units and expand the Hospital to Aged Care Dementia Support program from 11 to 20 locations nationally.

This was previously flagged by minister for health and ageing Mark Butler's speech at the National Press Club last month, who also announced the removal of the increased rebate for those over 65 for private health insurance to redirect those funds into aged care.

Meanwhile, the Budget will also provision $1.1 billion for future spending to increase and restructure the accommodation supplement and introduce an additional payment for homes with more than 60% supported residents.

A further $1 billion will be committed to improve personal care services in the Support at Home program, alongside $389.8 million to implement refinements in the program, including assessments, hardship applications and the end-of-life pathway, and to bring forward the release of the program.

Additionally, $565.1 million will be delivered to strengthen regulatory, governance and quality arrangements, sector viability and workforce support to provide better aged care for older Australians.

"These changes build on the government's aged care reforms that have codified the rights of older Australians in law and established a system to deliver safe, dignified and high-quality care for an ageing population," the Budget overview said.

This also comes as the review proposes to provide clearer distinction between financial advice and information obtained from aged care providers when it comes to understanding the costs and financial impact of residential aged care accommodations.

The report highlighted it is the responsibility of providers to ensure their staff do not provide financial advice outside of information relating to aged care costs.

The biggest risk to retirement may not be markets, but strategies that haven't kept pace with today's needs. For financial advisers who want to stay at the leading edge, Allianz Retire+ offers a compelling solution.

Retirement income products and annuities have come a long way in recent years, which is particularly timely as retirement confidence wanes amid ongoing geopolitical uncertainty and the rising cost of living.

Australians are also living longer; according to the Actuaries Institute, the cohort life expectancy of Australian males age 60 is 87.9 and for a females it is 89.8 - with at least half likely to live longer.

As such, solutions that offer reliable, guaranteed income that won't run out are increasingly attractive to both financial advisers and their clients, and Allianz Retire+ head of technical services Justine Marquet has noticed a renewed urgency from advisers in the market for annuities.

"What we're hearing consistently from advisers is that the conversation has shifted from how much clients have saved, to how reliable their income will be in retirement," Marquet says.

"We're operating in an environment of heightened volatility, elevated sequencing risk, and far less reliable diversification than advisers have historically relied on."

Marquet highlights the recent experience of bonds and equities moving together in response to geopolitical and macro-economic shocks, which can wreak havoc on portfolios and retiree savings.

Equity and bond market selloffs, such as that of March 2026, or the outbreak of the Russia / Ukraine conflict in 2022, are recent examples of this dynamic.

"Retiree portfolios are most exposed in the first decade of retirement, and for advisers, that creates a real challenge," Marquet says.

"A negative market event early in retirement can materially change client outcomes, not just balances, but confidence and sustainability of income. That's why advisers are revisiting income focused solutions.

"And it's not just as a reaction to short term market noise, but as part of a more deliberate strategy to protect retirement income and create certainty where it matters most, to provide cashflow for life."

Marquet says this is why advisers have been turning to annuities in building client portfolios, particularly for the role they can play alongside account-based pensions (ABPs) and other income strategies.

"We're not seeing advisers move away from ABPs but rather, they're becoming much more intentional about how different income sources work together," she says.

"Annuities can play an important role in securing a portion of a client's essential income, the income that needs to be paid regardless of what markets are doing."

Using retirement income products allows advisers to have more confidence in how the remainder of the portfolio is invested.

"When we use them this way, annuities aren't competing with ABPs, they complement them. They help reduce the need for market withdrawals in adverse conditions, or the amount needed to be held in cash buckets and can smooth income over time," Marquet explains.

"Importantly, we're also seeing advisers use annuities earlier. Not just at the point of retirement, but in the years leading up to it - particularly to manage sequencing risk while still allowing for growth."

For its part, Allianz Retire+ launched Allianz Guaranteed Income for Life (AGILE). AGILE aims to help convert super or retirement savings into a stable, lifelong income stream with the potential to grow and protect against market downturns.

For example, a 57-year-old who invests 30% of their savings, or $150,000, into AGILE could see their investment grow to say, $285,000 after 15 years. That same person at 72 may receive around $28,800 every year in guaranteed lifetime income.

"At its core, AGILE was designed to do three things well, and it's the way these features work together that really differentiates it," Marquet says.

"The first is growth potential with a safety net. Before a client switches on their lifetime income, their money remains invested. It has the opportunity to participate in markets, while being fully or partially protected against  
downturns."

This allows advisers to continue to help clients grow their retirement savings, without exposing them to the full impact of market falls, particularly around retirement when sequencing risk matters most.

"The second pillar is income you can rely on. Once lifetime income starts, clients receive guaranteed monthly payments for life, and for their spouse's life if they wish. That amount of income will never run out or decrease due to market performance, regardless of how long they live," Marquet says.

"And the third pillar is flexible access to money. The strategy isn't about permanently locking money away. If circumstances change, clients can access their investment, allowing advisers to adjust strategies as life evolves."

Taken together, the three pillars of protected growth, guaranteed income, and flexibility, make AGILE simple to position in practice, as part of the advice process.

"It's not all or nothing, it's a tool that advisers can use to balance growth, certainty, and flexibility within a broader retirement income strategy," Marquet says.

And earlier this year Allianz Retire+ made enhancements to AGILE on the back of direct adviser and client feedback.

This included a significant reduction in fees, halving the product fee to 0.3% per annum, which also applies on a go-forward basis to existing investors.

"For advisers, this materially improves long term value and makes AGILE easier to use as a core component of a retirement income strategy, particularly where clients are investing earlier and holding for longer," Marquet explains.

The other change to AGILE was allowing earlier access to guaranteed income.

"Clients can now commence lifetime income after just one year, instead of waiting three," Marquet says.

"That added flexibility is critical in practice, giving advisers the ability to respond quickly when client circumstances change - whether due to retirement timing, health, or income needs.

"Together, these changes enhance value, simplicity and flexibility, while preserving what makes AGILE structurally different."

Marquet says there are several things advisers should be looking for when comparing annuities if deemed right for their client.

"When advisers are comparing annuities, we'd encourage them to look beyond a single number," she says.

"Income timing and structure is important; does the client need income now, or is there value in deferring to increase future lifetime rates? Is there value in having lifetime income that will never stop or drop due to market performance?"

Flexibility and access to capital are also key considerations.

"Life changes, and advisers need strategies that can evolve over a 30 or even 40 year retirement," she points out.

"Growth potential matters as well. Today's annuities don't have to mean giving up the upside but understanding how protection and returns interact is critical."

Lastly, Marquet says advisers should consider the overall value of the options on offer in the market.

"Not just headline fees, but how the product supports long term outcomes and adviser decision making," she says.

"AGILE fits well for clients who want certainty over part of their retirement income, without giving up flexibility or growth. Ultimately, it's about giving advisers more tools, and more confidence that income will last, regardless of what markets do."

In partnership with Allianz Retire+. This content is for informational purposes only and should not be considered financial advice.

Under the proposal, all APRA-regulated super funds would be required to offer members aged 65 and over a pre-set account-based pension, a new income product 'MyIncome'. Members would be free to choose if they want to accept the account.

"We do not have a retirement income system. Australia's well-respected superannuation system has helped millions save for retirement. Now we need an equally effective mechanism for delivering that income," co-author of the paper David Knox said.

It further recommends any super balances remaining in the accumulation phase be automatically transferred to pension phase at 75, when an income would commence. Knox said age 75 is chosen as members can no longer make voluntary contributions to super from that age.

To support this transition, Actuaries Institute suggested super funds begin collecting members' bank account details to facilitate future pension payments from the time the member turns 60.

In its dialogue paper It's Time: Here's How to Turn Superannuation into a Retirement Income System Actuaries Institute estimates $326 billion of retirement wealth is "stranded" in the accumulation phase of super.

The paper found around 1.5 million Australians are leaving their superannuation untouched after age 65, reducing their available income and costing them over $2 billion each year in tax.

HESTA recently put out research stating Australians missed out on up to $13.5 billion in tax-free investment returns between 2017 and 2025 by not transitioning their super to the retirement phase.

"We need to normalise drawing an income from super so more people can live with dignity in retirement," co-author of the paper Nick Callil said.

"The process for accessing a retirement income is too complex so many people simply build up assets in super rather than using them in retirement as intended."

Knox said the system struggles with a broader structural gap as applying for an income stream requires retirees to make detailed financial decisions around asset allocation and drawdown amounts, complete additional forms and verify their identity.

"Importantly, our proposal gives super funds the flexibility to design account-based pensions to suit their members and continue to engage with them," Knox said.

"Funds know their members best and we want them to continue developing solutions that deliver the best outcomes for their members."

The proposal estimated this package will potentially deliver higher retirement incomes and tax savings. It will allow assets to move from accumulation phase, where investment earnings are typically taxed at 15%, to pension phase where earnings are generally tax-free.

"These policy suggestions are intended to improve overall retirement outcomes while leaving space for innovation and competition between funds," Callil said.

"It should be easy for Australians to access the savings they have worked so hard to accumulate, but the stranded balances issue shows we need to do more," Knox said.

After consulting with the industry, APRA released its final response to amending prudential standards on treating capital for longevity products in a bid to improve weak demand for such products.

One of the key changes is refining specific parameters of the proposed AILP calculation.

This is particularly in relation to the proposed floor for the risk allowance and treatment of the AILP in the credit spread stress charge under Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge.

After carefully weighing the feedback received, APRA said it determined the proposed settings for the AILP "remain sound and strike the right balance in providing capital efficiency in return for appropriate risk controls."

In introducing AILP as a factor determining capital requirements for longevity products, APRA said it will introduce additional risk controls with respect to the governance, reporting and asset composition of the longevity product portfolio.

Taking the AILP approach also "better reflects the long-term nature of liabilities."

"To underpin the AILP option, APRA has also introduced additional risk controls relating to the governance, reporting and asset composition of portfolios to which it is applied. Together, the reforms provide a more risk-sensitive, principles-based approach that reduces procyclicality in capital settings, while maintaining appropriate safeguards," APRA added.

A broad set of products will be eligible for the AILP, including all annuity products such as term certain annuities, as well as lifetime income products and innovative retirement income stream products that meet the eligibility requirements.

Elsewhere in its response, APRA believes the proposed of 45% risk allowance floor of the long-term average spread remains appropriate.

The reforms will come into effect on 1 July 2026. APRA has also released a reporting template for insurers who choose to use the AILP and is seeking feedback on the template by May 12.

APRA member Suzanne Smith said: "We're backing innovation in retirement income and we're doing it safely. As the prudential regulator, we always look for opportunities to refine our requirements. These adjustments to capital settings will free up insurers to invest in sustainable, competitively priced products that help Australians retire with greater confidence."

HESTA's latest whitepaper Make the move: guiding members to tax-free retirement found last financial year 1.8 million Australians remained in accumulation phase despite being eligible to switch, collectively forgoing $2.5 billion.

By 2030, nearly three million Australians are projected to be missing out on $5.5 billion annually.

"Retirement should be a time when Australians can enjoy the rewards of a lifetime of work. Yet too many Australians are not making the move from saving for retirement to actually living in retirement - and the cost of that inaction is significant," HESTA chief executive Debby Blakey said.

"Without reform, the problem will only grow. We need system-level change to make it easier for people to access tax-free income in retirement."

The research said all member groups irrespective of their balance, gender, homeownership, or marital status would benefit from transitioning to retirement products at eligibility.

"The research finds every eligible member cohort analysed is better off when they have access to a retirement phase option rather than staying in accumulation," Blakey said.

"That's why we're calling for a well-designed default mechanism that would seek to ensure no Australian is left behind simply because the system failed to guide them."

The whitepaper also noted the consequences are not felt equally, with women being disproportionately affected.

Female HESTA members have a take-up rate of 29%, while for all eligible members it sits at 30%. The take-up rate for the super system is 45%.

"Women who have spent their careers caring for others often retire with more modest balances - and they are precisely the members least likely to make this transition on their own," Blakey said.

By transitioning to a retirement income stream upon eligibility, members could boost total retirement income by up to 12% depending on their circumstances, compared to those who delay by four years, the whitepaper found.

In its 2026-27 pre-budget submission, HESTA has called for funds to be given the ability to actively prompt members to transition to appropriate specific fund retirement products, with the ability to opt-out.

It also called to allow default transition for eligible members into a retirement income stream, with an opt-out option for consumer protection.

Separately, Blakey will be leaving the fund later this year, opting to step down after 11 years at the helm. HESTA is now searching for Blakey's replacement and expects to announce a new chief executive ahead of her departure.

The prudential regulator has released details of how it can work with the industry to implement the new reporting framework on retirement outcomes in a bid to improve transparency and monitor member outcomes in retirement.

APRA's role is to collect and publish the data every year from 2027 to produce and deliver insights on fund offerings and member outcomes and help track progress with retirement phase uplift.

APRA, for example, proposes member segment-level reporting for product types members hold, drawdown levels, value of benefit payments paid to members and actions taken when an account is closed.

These will be collected along with member-cohort level, which include the age range (60 years and each year above), sex type and members' benefit bracket, and retirement status.

APRA and ASIC will jointly use the data as part of tracking progress by RSE licensees against retirement income strategies required by the Retirement Income Covenant. It will then share the data with ASIC, Treasury and other relevant government agencies.

APRA said it anticipates there will be "relatively more work involved for RSE licensees that are comparatively less well-advanced in terms of existing member-centric reporting."

Stakeholders are asked if it is feasible for APRA to collect and report this data, share any material impediments in doing so, as well as the potential upfront and ongoing costs incurred.

APRA details its proposals and timelines in consultation paper, Proposed superannuation data collection to implement the Government's Retirement Reporting Framework.

APRA seeks submissions until June 3.

By the fourth quarter of 2026, APRA hopes to release the final forms and taxonomy, and one year thereafter it will conduct its first data collection.

The reporting framework is one of several government initiatives announced in November 2024 to uplift the retirement phase of superannuation.

A Treasury-led consultation was conducted in 2025. A final high-level design of the framework was announced on February 23.

It had soft launched the product's saving phase in August in partnership with TAL and Challenger. Advisers can now recommend MLC Retirement Boost as a complete solution, including the retirement and savings income phases, to their clients.

The retirement income phase of MLC Retirement Boost can be used as a standalone solution or alongside an account-based pension. It is designed to deliver a tax-free retirement income for life, with investment flexibility and potential Age Pension advantages for members.

MLC Expand chief executive Liz McCarthy said the product is an innovative solution to tackle the issue of Australians hanging on to their cash at retirement in fear that they might not have enough to live on.

"This product addresses those issues...it can give them confidence that no matter how long they live, they're going to have an amount to live on, and that they won't ever burn through that cash," McCarthy said.

The program has also established a Centre of Excellence through which advisers can get access to expert technical insights, case studies, information and client support tools and calculators.

Advisers can access a range of specialised resources, including a digital Retirement Boost optimiser tool that visualises a client's projected total retirement income across super, MLC Retirement Boost and the Age Pension, helping advisers tailor more effective strategies.

"One of the key differentiators with MLC Retirement Boost, and the thing advisers have told us they're most excited about, is the newly launched Centre of Excellence, a unique point of difference in our partnership with TAL and Challenger," McCarthy said.

McCarthy added that modelling by MLC Expand showed when used at its full potential the product, complemented with traditional retirement products like an account-based pension, can improve a client's income in retirement by up to 60%.

"This solution will be life changing for many and is the future of retirement in Australia," she said.

MLC's director of customer innovation Ashton Jones said it is simple to sign up for the product, with clients only required to make an election on their superannuation account in the savings phase.

"For most clients we would expect that they would take up retirement boost in the pension phase alongside an account based pension," Ashton said.

"It's really there to complement what the account based pension does for the client, but really importantly, all enabled through the Expand platform."

McCarthy added: "In the savings phase, it's designed to unlock the potential of a member's superannuation at no extra cost - potentially creating a higher retirement income from their first contribution. The earlier members sign-up, the more potential for Centrelink benefits in retirement - so it's a no brainer in the savings phase!"

"In the retirement income phase, MLC Retirement Boost is designed to give retirees greater certainty - consistent, tax-free income for life - with the added potential to increase retirement income through concessional treatments not available through standard pension products."

She added MLC plans to continue improving and innovating in the space in partnership with TAL and Challenger.

Trump said that since he took office the typical 401(k) balance has grown by "at least US$30,000".

"That's a lot of money. We have millions and millions of people. Because the stock market has done so well, setting all those records. Your 401(k)s are way up," Trump said.

However, Trump said half of American workers do not have access to a retirement plan with matching contributions from an employer.

"To remedy this gross disparity, I'm announcing that next year my administration will give these oft-forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker," Trump said.

"We will match your contribution with up to $1000 each year, as we ensure that all Americans can profit from a rising stock market."

Reports from the US suggest the proposal would be open to workers who don't already have access to an employer-sponsored retirement plan. They would get access to a program like the Thrift Savings Plan, which is already available to federal workers.

The Thrift Savings Plan is a defined contribution retirement savings and investment plan that offers US Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.

Under the new proposal the government would match employee contributions to both these plans and existing employer plans with no match, up to $1000 annually.

According to research from Pew Charitable Trusts, around 56 million Americans do not have access to a retirement savings plan at work.

Treasury Secretary Scott Bessent said the government could use the budget reconciliation process to advance the new retirement proposal.

Bessent said the proposal would be rolled out "in the coming weeks and months" but no further information has been released by the White House.

"These reforms are all about strengthening the system to deliver the best results for Australians when they retire, as well as when they're working," Chalmers said.

"Australia's $4.5 trillion superannuation system is entering a critical phase, with more than 2.5 million Australians expected to retire in the next decade."

Chalmers said the reforms aim to ensure there is as much policy and product focus on the retirement phase as there is in the accumulation phase.

"They will improve transparency and drive trustees to innovate and deliver better retirement solutions for their members," Chalmers said.

"This will help Australians retire with more confidence knowing they have access to the right product solutions, information, and strategies to help them make the most of their superannuation."

Chalmers said the Best Practice Principles set out "clear guidance" for trustees on the design and delivery of retirement income solutions.

"They outline the steps funds can take to better understand members, design fit-for-purpose solutions, and engage their members on retirement income decisions," he said.

The Best Practice Principles are voluntary to adopt and "designed to be read holistically".

They aim to support trustees in how to gain a deeper understanding of their membership and their retirement income needs, to support the design of quality retirement income solutions, guidance services and engagement strategies; design a robust suite of products and product settings that allow trustees and members to build quality retirement income solutions; combine products and product settings to construct retirement income solutions appropriate for identified cohorts; foster member engagement in retirement to support informed choice and improved retirement outcomes; and review and improve their trustee-designed retirement income solutions.

"Trustees are accountable to their members for the quality of their retirement income solutions, guidance services, and engagement strategies that support members to achieve quality retirement outcomes," the Guidance on best practice principles for superannuation retirement income solutions paper said.

The principles don't change the operation or interpretation of existing law, prudential standards or fiduciary duties, the paper said.

Meanwhile, the Retirement Reporting Framework will collect data on industry progress in the retirement phase of superannuation and drive uplift to member outcomes by creating greater transparency across industry.

APRA will collect and publish the data required to give effect to the framework, providing insights on fund offerings and member outcomes and helping track progress on uplift across the sector.

The new measures build on the obligations introduced by the Retirement Income Covenant. They will be reviewed regularly to ensure they remain fit for purpose and reflect evolving industry practice.

"Together, these reforms will help Australians achieve higher quality retirement outcomes after a lifetime of saving, consistent with the objective of superannuation," Chalmers said.

"Labor built the superannuation system, and these reforms build on our work making the system stronger, fairer and more sustainable."

A comfortable retirement super balance is now $630,000 for singles, up from $595,000. Couples would need a super balance of $730,000, up from $690,000.

On an annual basis, homeowners aged 65 and over now need $77,375 for a comfortable retirement as a couple, and $54,840 for a single.

The lump sums required for a modest retirement have also increased to $110,000 for singles and $120,000 for couples, up from the previous $100,000 for both groups.

ASFA attributed the rise to the Age Pension not being able to keep pace with retirees' cost of living.

"Retirees' living costs have risen, and support from the Age Pension has not kept pace with this rise. This means retirees need higher super savings to maintain a comfortable lifestyle," ASFA chief executive Mary Delahunty said.

"Costs in the categories that retirees tend to spend most on have risen faster than general consumer price inflation. So that means even though the Age Pension is indexed, a greater burden is placed on retirees' personal super savings."

The other major factor, ASFA noted, has been the recent increase in deeming rates, the assumed rates of return applied to financial assets when assessing Age Pension eligibility.

Last week, minister for social services Tanya Plibersek, announced a rise in the lower deeming rate to 1.25% for financial assets under $64,200 for singles and $106,200 for couples. The upper rate will rise to 3.25% for assets over the same thresholds.

"When deeming rates rise, a person's assessed income can increase even if their actual investment returns have not, which can reduce their Age Pension. This shifts more of a retiree's budget towards reliance on super rather than Centrelink," Delahunty said.

While Delahunty said the rise in the lump sum amount reflects greater pressures from living expenses on retirees' super savings, the overall picture for retirement outcomes is positive.

She noted Australia's super system continues to generate superior returns on investments for its members.

"The good news is that Australians are reaching retirement with larger super balances than ever before. The super system is working really well, securing Australians' retirements."

A 30-year-old worker with $30,000 in super today and earning $80,000 throughout their career adjusted for inflation is on track to retire with $645,000.

"That's because super funds have delivered exceptional returns in the last few years. The average balanced fund returned 9.9% in 2023, 11.4% in 2024, and 9.3% in 2025. That's cumulative growth of nearly 35% over three years, well ahead of inflation," Delahunty said.

The Superannuation Guarantee has also risen steadily since 2020 and is now at 12%.