Is your super still working for you?
- 27 May 2026
- by Claudio Orrico
- 9-minute read
A record $4.3 billion left industry funds last year. Here’s what’s driving the shift – and what it means for your retirement.
The shift is already underway
Something significant happened in Australian superannuation in 2025. For the first time in decades, the flow of money reversed. Analysis of APRA rollover data by research firm CoreData revealed that $4.3 billion was withdrawn from industry super funds across the year — while $3 billion flowed into retail and platform funds in the same period.
This isn’t a story about industry funds failing. It’s a story about a demographic reaching a new stage of life — and finding that the product they’ve held for 30 years may no longer be the right fit.
The beneficiaries are platforms like Hub24 and Netwealth, which are built around adviser-led, whole-of-wealth management. Netwealth alone added $8.9 million every single day to its superannuation product in the most recent reporting period. AustralianSuper recorded net outflows for the first time since 2004.
Wondering if your super is still the right fit for this stage of life?
Contact Claudio Orrico to start a conversation — no obligation, just clarity.
Why the exodus — and why now?
Industry funds were built for accumulation. They are, by design, low-cost, standardised, and efficient at growing a balance over a 30-year working life. For most Australians in their 20s, 30s and 40s, that model works well.
But retirement changes everything. The shift from building wealth to drawing it down — what financial planners call ‘decumulation’ — demands flexibility, tax efficiency, personalised advice, and a view of your entire financial position, not just your super balance. Many industry funds simply haven’t built for this.
“Service fundamentally trumps price in the battle for engaging people in that final phase of superannuation.”
— Andrew Inwood, Founder, CoreData
CoreData’s research reinforces the scale of the advice gap: when people engage a financial advisor, they switch super funds two-thirds of the time. The funds that built strong accumulation-phase products over the past decade are now facing the challenge of serving a very different need — and many haven’t yet made the investment in people, technology, or flexibility to do it well.
What retail and platform funds offer that most industry funds don’t
The difference isn’t simply one of ‘service’ in an abstract sense. Platform funds like Hub24 and Netwealth offer capabilities that are structurally different:
- Whole-of-wealth visibility — super, investments, family trusts, and property tracked in one place
- Pension drawdown flexibility — ability to structure income streams and minimise tax across accounts
- Investment breadth — direct shares, ETFs, managed accounts and more, not just fund menus
- Deep advisor integration — platforms built to support an ongoing advice relationship, not just a balance summary
Industry funds generally see only your super. They don’t have visibility over your investment portfolio, your property, your trust structures, or your business interests. For someone in the accumulation phase, that may not matter much. For someone designing their retirement income — it matters enormously.
Words from Claudio Orrico, Partner — Financial Planning, BG Private
Claudio has worked with BG Private clients across all stages of wealth — from early accumulation to complex retirement and estate planning. Here, he shares his perspective on what this shift means for clients considering their next move.
The question we’re really asking with clients isn’t ‘which fund is better’. It’s: what are you trying to design? Retirement looks different for everyone — and your super structure should reflect your life goals, not just your balance.”
— Claudio Orrico, Partner, Financial Planning, BG Private
Think of super funds as sitting on a spectrum. Industry funds offer the least flexibility as a general rule, followed by retail funds. At the far end sits the SMSF — a Self-Managed Super Fund — where you effectively act as the trustee of your own fund, investing with a level of control that simply isn’t available elsewhere. The bigger your super balance, the more cost-effective an SMSF generally becomes.
For clients over 50, the transparency and strategic flexibility of an SMSF can be transformative — particularly when it comes to optimising for retirement income, managing tax, and integrating super with other assets. But it’s not the right fit for everyone, and that’s exactly what a proper review helps determine.
A super review isn’t about switching for the sake of it. It’s a financial health check — like a whole-of-life review. We look at where you are, what you want your life to look like in retirement, and whether your current structure is actually set up to deliver that.”
— Claudio Orrico, Partner, Financial Planning, BG Private
Retirement is one of those life events that naturally triggers a review — but it shouldn’t be the only one. Anyone with a growing balance, a more complex financial picture, or a sense that their super isn’t quite keeping pace with their broader wealth goals can benefit from stepping back and assessing the fit.
Budget 2026/27: A new reason to look at your super structure
The Federal Budget announced on 12 May introduced proposed — but not yet legislated — changes that have added a new dimension to this conversation. The proposed reduction of negative gearing benefits and the removal of the 50% discount to Capital Gains Tax to be replaced by indexation to the cost base by inflation means that property held outside of super may face a materially higher tax burden going forward.
Inside superannuation, the tax treatment of investment returns remains significantly more favourable — particularly within an SMSF, where investment property can be held with full trustee control. For clients who hold or are considering investment property, these proposed changes create a compelling reason to model what holding property via your super structure might mean for your long-term tax position.
These proposals are not yet law, but they signal a clear direction. Now is a prudent time to have the conversation — before decisions are made that are difficult to unwind.
Most BG Private clients don’t need to act right now — but…
This isn’t a call to action for everyone. Most BG Private clients are well-positioned, and there is no need to make hasty decisions on the basis of a market trend.
But if any of the following apply to you, a review is worth a conversation:
- You’re approaching 60 or planning to retire within the next three to five years
- Your super balance has grown significantly and your financial situation is more complex than it was when you joined your fund
- You hold or are considering investment property and want to understand the tax implications of recent Budget proposals
- You’re seeking greater control, investment flexibility, or a whole-of-wealth view that your current fund doesn’t provide
A review is low-effort and high-value. It doesn’t commit you to anything — it simply gives you the clarity to make an informed decision.
It’s also worth knowing that a super review often surfaces questions about insurance held inside super — an area where costs have been rising sharply. AustralianSuper recently announced increases of up to 40% on some premiums, and group fund insurance can change its terms without your involvement. Our colleague John Green covers this in detail in his recent article on super fund insurance — it’s well worth a read alongside this one.
Designing the retirement you want
The right super structure isn’t the one with the lowest fees or the best-performing fund table. It’s the one that’s been designed around your life — your goals, your assets, your timeline, and what you want the next chapter to look like.
That looks different for everyone. Our job is to help you figure out what it looks like for you.
If you are thinking of topping up super contributions for this financial year, please reach out to our Financial Planning team no later than 20th June to comply with Super funds end of financial year cut off dates.
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