The Australian Prudential Regulation Authority (APRA) set out its supervisory priorities for superannuation as the industry shifts toward the retirement phase, pressing trustees to strengthen retirement income strategies under the Retirement Income Covenant alongside sharper operational resilience and a better understanding of superannuation’s growing systemic footprint. The update also flagged upcoming publications on trustee progress and on system-level risks as the sector expands. APRA highlighted the scale and pace of change, citing AUD 4.3 trillion in system assets (AUD 3 trillion in APRA-regulated funds) and a Treasury estimate that around 2.5 million Australians will move from accumulation to retirement during this decade, with retirement-phase assets expected to grow from AUD 575 billion to around AUD 3 trillion over 20 years. On covenant implementation, APRA referenced an earlier APRA–Australian Securities and Investments Commission (ASIC) thematic review that found a lack of urgency, and subsequent pulse-check work that again identified weak tracking and measurement of retirement income strategy success. The speech also pointed to member-outcome frictions such as retirement-age members remaining in accumulation products, including AUD 99 billion in MySuper accounts held by members aged 65 or over. Operational priorities included stronger cyber controls following credential-stuffing attacks earlier in the year, with APRA emphasising robust information controls including multi-factor authentication for member accounts, and continued focus on implementing CPS 230 requirements, particularly for oversight of material service providers. APRA also reiterated its push for greater transparency in retirement product performance and covenant progress. Next milestones include publication of APRA–ASIC joint pulse-check survey findings next month and early findings from APRA’s inaugural system stress test later this year. APRA indicated a second consultation on proposed reductions to life insurer capital requirements for annuity products will begin shortly, with finalisation targeted for the first half of next year; fund-level retirement product data is to be incorporated into APRA’s Comprehensive Product Performance Package from the second half of 2025-26. Work with Treasury on a retirement outcomes reporting framework is intended to commence in 2027, subject to government confirmation of the framework’s scope following Treasury’s earlier consultation.
Australian Prudential Regulation Authority 2025-10-16
Australian Prudential Regulation Authority outlines superannuation retirement-phase priorities focused on Retirement Income Covenant delivery and stronger resilience and transparency
APRA outlined its supervisory priorities for superannuation as the sector transitions to retirement, urging trustees to enhance retirement income strategies and improve operational resilience. With system assets at AUD 4.3 trillion, retirement-phase assets are projected to rise significantly. Concerns include inadequate tracking of strategy success and member-outcome frictions. Priorities focus on strengthening cyber controls and implementing CPS 230. Upcoming milestones include survey findings, a stress test, and consultations on life insurer capital requirements.