More than three decades ago, Australia embarked on a bold social and economic journey to broaden access to superannuation (super) for all working Australians. This was achieved first through industrial awards and then, in 1992, through the introduction of the groundbreaking Super Guarantee – a legal requirement that employers contribute a minimum percentage of an employee’s earnings into a super fund for their retirement. Before then, most Australian workers relied almost exclusively on the publicly funded Age Pension for their retirement and had little or no exposure to the types of financial assets used by the wealthy to fund their retirement.

2025 marks a key milestone in this multi-decade project, with the Super Guarantee now finally reaching its intended level of 12% of wages. But the system still has decades to reach full maturity, given super typically accumulates and compounds over a full working life of 30-40 years.

To better understand how the retirement system is working today, SMC is producing a series of 3 research reports. These reports are based on real-world data from Australian retirees. They aim to shine a light on how the retirement phase of the system is performing, and what reforms are needed to improve outcomes for all Australians. 

Report 1 – Retirement Revolution: Super’s Coming of Age

This report is the first substantial picture of the trends taking place in Australia’s retirement system since the Government’s Retirement Income Review in 2020, tracking current and expected dynamics of our retirement system.

It uses first-of-its-kind analysis to help us understand the way in which the Super Guarantee is transforming the retirements of everyday workers and the Australian economy, despite the fact the system has decades more to reach full maturity.

The picture this report reveals is that

• The biggest beneficiaries of super are not the well off, but rather middle and low-income wage earners.
• As successive groups retire with super, this money is lasting longer into their retirement years.
• The Super Guarantee has seen ownership of assets cascade down the wealth rungs.
• Super is reducing reliance on the Age Pension, saving up to $12 billion a year.

Report 2 – Retirement revolution: Simpler smarter retirement

This is the second in a series of three groundbreaking reports by SMC on retirement. This report collates new data and analysis on how Australians are managing their incomes in retirement, using fund-level data, behavioural insights, and modelling.

It comprehensively updates Australia’s evidence base on retiree incomes and provides a roadmap to a better retirement income system.

The report’s central thesis is that 2.8 million more Australians will retire in the next decade—twice the current annual figure. These retirees will have higher super balances and rely more on a combination of super and the Age Pension. This increased complexity will be compounded by already convoluted super laws, numerous product options, Age Pension means-testing, and uncertainties around life expectancy and aged care costs.

It’s in this context that SMC outlines a roadmap for reform, to address these challenges and simplify the retirement experience of retirees. The report sets out several actionable steps to make Australia’s retirement income system simpler and smarter, which can help governments make good policy decisions and prioritise changes. This roadmap can also help super funds as they continue to refine their retirement income strategies and develop the mix of information, guidance, advice and products best suited to their members.