Rainmaker’s executive director of research and compliance, Alex Dunnin, said the research house estimated 39 per cent of all super was owned by people aged over 65, and this proportion would surge in decades to come as the populated aged.

Loading

However, he said retirees were not well served by super funds because the fees were often too high and many annuity-style products were too complex. With people living longer, Dunnin said the risk of people outliving their super would be a significant problem, but consumers had not traditionally bought annuities. He said super funds were focusing more on this part of the market, and more “longevity” products were on the horizon.

“While it sounds counterintuitive, retirement super is primed for disruption. And one of the biggest disruptors could be groups like AMP. That said, other super funds are making noises of going down the same road,” Dunnin said.

AMP’s move comes as super fund returns have been hit hard by rising inflation and interest rates this year, and George said this had resulted in some members switching their funds to lower-risk options.

“Discretionary contributions are certainly a bit lower, and you do see a movement, especially from the advised clients, into more conservative options,” George said.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.