Money Matters: Your biggest superannuation questions answered by Australia’s top experts
Women’s Weekly, 17 July 2026
Q. How are funds redesigning their products to provide members with a stable, ‘paycheck-like’ income that accounts for longer life expectancy and rising aged-care costs?
Kirby Rappell, Director, SuperRatings:
A common misconception around super is that it is simply a pool of money that Aussies can withdraw when they retire. While this is an option, super funds offer a range of products and support to help retirees maximise income from their savings throughout retirement.
The most common way to convert your super balance into an income is to set up an account-based pension.
These require retirees to receive regular payments from their super balance, effectively replacing the paycheck we are used to receiving. By doing this, earnings on your investments are not taxed, which boosts returns.
Retirees can choose how much they are paid and how often, subject to a legislative minimum, as well as how their balance is invested.
Some funds offer retiree-focused investment options or strategies, such as bucketing. Bucketing allows a retiree to have part of their balance in cash, where payments come from, meaning they can withstand market shocks while keeping a steady payment. Account-based pensions have many features that retirees can tailor to suit their needs, making them one of the most flexible options for accessing balances.
We are also seeing more funds offer products that provide retirees with a guaranteed income for life. These solutions increase certainty but may limit withdrawal flexibility or require retirees to accept a lower return to pay for the certainty they receive.
Often these products, coupled with Age Pension entitlements, are designed to ensure income will cover necessities and can be combined with account-based pensions to grow savings for items that aren’t must-haves.
Overall, funds want to provide options that optimise income certainty in retirement.
Funds are also investing in better tools and education around retirement options and maximising aged pension entitlements.
Many offer some form of advice, and it can be beneficial to get professional help.
Combined with the range of products available, funds can ensure retirees have the confidence to retire with enough certainty that they can focus on what matters most: a happy and healthy retirement.
