Super lump sum drawdowns outgrow pension
Superannuation lump sum payments continue to grow despite the Government’s policy actions around the Retirement Income Covenant.
The latest quarterly data from the Australian Prudential Regulation Authority (APRA) pointed to a 12.5% increase in benefit payments to $139.9 billion for the year ending December, 2025 and, importantly, lump sum payments increased more rapidly than pension payments.
The data show that lump sum payment rose by 13.8% to $776 billion and pension payments increased by 10.8% to $62.3 billion.
The APRA data also highlights the degree to which benefit payments continue to rise at a faster pace than total contributions with total benefit payments growing by 12.5% to $139.9 billion, while total contributions rose by 11.5% to $220.8 billion for the year to December.
Overall, total superannuation assets increased by 0.8% over the quarter to $4.5 trillion as at December 2025, of which $3.2 trillion was in APRA-regulated funds.
Total contributions increased by 11.5 % to $220.8 billion in the year ending in December 2025. Employer contributions increased by 8.6% over the year to $156.3 billion. Member contributions increased by 19.2% over the year to $64.5 billion.
The APRA data has also reinforced the continuing decline in corporate superannuation entities, listing just two funds, compared to 20 industry funds and 49 retail funds, down from 53 in December, 2024.
Misleading figures. We’d have millions and millions removed in our client base with LS. Almost 100% came straight back in and is now in pension phase.