Can MySuper work for MyRetirement?

Mike Taylor

Managing Editor and Publisher

17 April 2026

Actuaries are backing a default-style MySuper approach to the retirement phase of superannuation – a ‘MyIncome’ product which is a pre-set account-based pension offered to super fund members aged over 65.

The Actuaries Institute are backing the proposition via publication of a new paper which is being fronted by Mercer’s Dr David Knox and former Willis Towers Watson Head of Retirement Solutions, Nick Callil.

Under the proposal outlined in the paper the MyIncome package would be offered to members from age 65 but would fully active at age 75 when super fund members can no longer make voluntary contributions.

The central premise of the paper developed by Knox and Callil is that the existing regime around applying for post-retirement income streams is too complicated and this is acting as an impediment resulting in many people leaving their super untouched after age 65.

The paper recommends that that APRA-regulated superannuation funds must offer these individuals a pre-set account-based pension designed by each superannuation fund.

“Accepting this offer would provide these members with regular income and tax-free investment earnings. In addition, it is recommended that retirement income payments must commence no later than age 75 for all members of APRA-regulated funds and Self-Managed Super Funds (SMSFs),” it said.

“These proposals would alleviate the ‘stranded balances’ problem. They would also help transform our system into one which achieves its objective of delivering income in retirement for all Australians,” the paper said.

The paper identifies that Australia has a problem with stranded superannuation balances – a problem reflecting the lack of any restrictions or requirements on how members use their savings once they reach retirement.

It argues that the extent of stranded balances is sizeable with the paper authors estimating there are at least 1.5 million Australians aged 65 and over who have balances in accumulation phase.

“The aggregate amount of these stranded balances is estimated as $326 billion, implying an average stranded balance of over $200,000,” the paper said.

“By not transferring stranded balances to pension phase, these Australians are paying more than $2 billion in additional tax each year, forgoing investment earnings that could materially improve retirement outcomes.”

“We need to normalise drawing an income from super so more people can live with dignity in retirement. The process for accessing a retirement income is too complex so many people simply build up assets in super rather than using them in retirement as intended,” said Callil.

“There is clear inertia when it comes to drawing down income, driven by the complexity of the decisions retirees are being asked to make,” he said.