In a speech on the retirement phase of superannuation, the Australian Prudential Regulation Authority outlined expectations for trustees to strengthen operational resilience, investment governance and liquidity management as accounts held by members who have reached preservation age are projected to increase by 3.9 million over the next decade. APRA and the Australian Securities and Investments Commission will also continue pressing trustees to meet the Retirement Income Covenant, particularly those that have not fully embraced its requirements. Trustees are expected to ensure reliable pension payments, protect balances from operational and cyber risks, oversee service providers effectively and align retirement products with members’ income needs and exposure to sequencing, inflation and longevity risks. While APRA assesses the financial system as resilient to market and liquidity shocks, funds with older membership bases or weaker inflows may face liquidity pressure sooner, while shifts in member behavior during market stress could create nearer-term risks. APRA changed the capital treatment of longevity products from July 1, 2026, to support competition and innovation in the annuity market. It will also increase transparency around trustees’ retirement support through implementation of the government’s Retirement Reporting Framework.
2026-08-19Australian Prudential Regulation Authority
Australian Prudential Regulation Authority outlines trustee priorities as retirement-age accounts are projected to grow by 3.9 million
The Australian Prudential Regulation Authority outlined stronger operational resilience, investment governance and liquidity expectations for superannuation trustees as retirement-age accounts are projected to grow by 3.9 million over the next decade. It also highlighted continued scrutiny of Retirement Income Covenant compliance, revised capital treatment for longevity products and increased reporting transparency.