In short

An annual super statement review covers eight areas: balance trajectory, investment option performance, fees, insurance need, beneficiary nomination currency, contributions and caps, pension drawdown adequacy, and Transfer Balance Account position. It takes 30-60 minutes and consistently surfaces high-value action items — lapsed binding nominations, unnecessary insurance premiums, underperforming investment options, and missed minimum drawdown requirements — that can be worth far more than the time invested.

For Australians at or near retirement, the annual super statement is one of the few documents that consolidates the structural state of their retirement savings in one place. The fund issues it once a year — typically late in the financial year or early in the new one — and it covers the year's activity, the current account balance, fees and costs, insurance arrangements, beneficiary nominations, and other administrative items. Most members glance at the balance and put the statement aside. For retirees, this is a missed opportunity. A structured review takes 30 to 60 minutes and consistently produces action items worth substantially more than the time invested. The most common findings are lapsed binding beneficiary nominations, insurance cover that is no longer needed but still being charged, suboptimal investment options chosen years ago and never revisited, and drawdown levels that no longer align with the retiree's broader income strategy.

The first item is the balance trajectory. Compare opening balance (last year's closing), closing balance (current), net contributions over the year, net pension or lump sum withdrawals, and the residual investment earnings. For a retiree drawing a pension, the arithmetic typically reads: opening balance + earnings − drawdowns = closing balance. If earnings are negative in a bad market year, the balance erodes; if earnings exceed drawdowns, the balance grows despite withdrawals. Tracking this across multiple years gives a clear picture of whether the retirement is sustainable on the current trajectory.

The second is the investment option. The statement shows which option or options the member is currently invested in, the percentage allocated to each, and recent performance. For retirees, the questions are: is the option still appropriate for current circumstances? Has it performed in line with peers and comparable benchmarks? For MySuper products, has the option passed the Your Future Your Super annual performance test? Are there better-performing options within the same fund? Many retirees are in the option they selected decades ago and have never revisited. A 1% per annum performance differential compounds to roughly 22% over 20 years — on a $500,000 balance, that is over $100,000.

The third is fees. The statement discloses administration fees, investment fees, performance fees where applicable, insurance premiums, and member fees. According to APRA annual fund-level statistics and Rainmaker research, total fees across Australian super funds average around 1.1% of assets per year, with low-cost funds in the 0.5%–0.7% range. Higher-than-typical fees should be justifiable by performance, additional services, or product features — fee cost without commensurate benefit compounds as a drag on retirement income over time. Look at fee trends over recent years; compare to alternatives within the fund and across funds where relevant. Fee impact is highest in absolute terms for retirees, because account balances are at their largest.

The fourth is insurance. Most super funds provide default insurance — typically life cover, total and permanent disablement (TPD), and sometimes income protection. The statement discloses cover type, amount, and annual premium. For retirees, the question is whether the cover is still needed. Many retirees have accumulated sufficient wealth that the lump sum payout from life or TPD cover would not meaningfully change family financial circumstances — in which case, the premium is pure cost. Age-based cessation rules mean that TPD cover through super typically ends at age 65 and life cover typically ends at age 70 (MoneySmart, https://moneysmart.gov.au/how-life-insurance-works/insurance-through-super), so retirees in their 60s are often in the final years of coverage. The Protecting Your Super legislation (effective July 2019) also requires funds to cease default insurance for accounts inactive for 16 consecutive months, unless the member opts in (APRA, https://www.apra.gov.au/protecting-your-super-package-frequently-asked-questions). The review question is straightforward: am I paying for cover I actually need, and does the cost reflect that need? Cancelling unneeded cover is a one-way decision — reinstatement at older ages typically requires medical underwriting and may not be possible.

The fifth is beneficiary nomination. The statement discloses the current nomination status — binding lapsing (typically expiring after three years), binding non-lapsing, non-binding (trustee discretion), or no nomination. The review questions: is the nomination current and not lapsed? Is the named beneficiary still appropriate — death of a spouse, divorce, or family changes can all make a previous nomination inappropriate or inoperative? Is the nomination in valid form, with correct paperwork, properly witnessed, and consistent with super law's definition of death benefit dependants? Lapsing binding nominations expire silently — many retirees discover this only when the death benefit is paid out under default rules that do not reflect their intentions. The annual statement is a simple prompt to check and, where needed, renew.

The sixth is contributions and caps — primarily relevant for pre-retirees still in accumulation. The statement shows concessional, non-concessional, government co-contribution, and spouse contributions received during the year. The review questions: were concessional caps used effectively? Is unused carry-forward concessional capacity available — accessible where Total Super Balance was under $500,000 at the prior 30 June? Is a bring-forward non-concessional contribution relevant? Are downsizer or other one-off contributions applicable? The concessional contributions cap is $30,000 per year for 2025-26; the non-concessional cap is $120,000 per year (or $360,000 under the three-year bring-forward). For retirees with minimal or no ongoing contributions, this section is a brief check for unexpected entries.

The seventh is pension drawdown (for retirees in pension phase). The statement shows pension payments received during the year, the minimum drawdown required under the applicable age bracket, and annual drawdown as a percentage of opening balance. The questions: was the minimum drawdown met in full? Failure to draw the required minimum has a specific consequence — the pension's earnings can lose tax-free status for that year. Is the drawdown level appropriate to the broader income strategy? Higher-than-needed drawdown depletes the balance faster than necessary; lower-than-needed drawdown may leave assets unspent that could have funded lifestyle.

The eighth is the Transfer Balance Account position for retirees in pension phase. The statement should disclose the Transfer Balance Account balance, which tracks the cumulative net of pension commencements (credits) and commutations (debits) under the Transfer Balance Cap framework. The current Transfer Balance Cap for 2025-26 is $2.0 million. Is the TBA balance close to the individual cap? Where indexed cap increases have applied, personal caps may differ from the general cap — the ATO's online services show each member's personal TBA balance and remaining space. Approaching the cap without planning can result in unintended excess transfer balance tax.

A typical annual review produces a short action list: update the beneficiary nomination if it has lapsed or is no longer appropriate; cancel insurance no longer needed; switch investment option if performance has been persistently poor; consolidate any other super accounts; confirm pension drawdown is at the right level; and schedule next year's review at the same time of year.

For retirees, this is among the highest-value annual tasks they can perform — on their own, or with adviser support. It takes under an hour, requires no specialist knowledge, and routinely produces specific actions that improve the structural position of retirement savings.

Sources

Key takeaways

  • The most common findings from a structured annual super statement review are lapsed binding beneficiary nominations, insurance cover no longer needed but still being charged, underperforming investment options never revisited, and drawdown levels misaligned with the retiree's income strategy.
  • A 1% per annum performance differential compounds to roughly 22% over 20 years — on a $500,000 balance, that's over $100,000, making the investment option check one of the highest-value items in the review.
  • TPD cover through super typically ends at age 65 and life cover at age 70, and funds must cease default insurance on accounts inactive for 16 consecutive months unless the member opts in — many retirees in their 60s are paying premiums for cover in its final years or already lapsed, and cancelling unneeded cover should be weighed carefully since reinstatement later usually requires medical underwriting.
  • Binding lapsing nominations typically expire after three years and lapse silently — many retirees only discover this when a death benefit is paid out under default rules that don't reflect their actual wishes, making the annual nomination check essential.
  • For retirees in pension phase, failing to draw the required minimum pension amount can cause the pension's earnings to lose tax-free status for that year, and approaching the $2.0 million Transfer Balance Cap without planning can trigger excess transfer balance tax.

Frequently asked questions

What should retirees check on their annual super statement?

Eight key areas: the year's balance trajectory (opening balance, earnings, drawdowns, closing balance); whether the current investment option is still appropriate and performing well; total fees relative to fund averages; whether insurance cover (life, TPD, income protection) is still needed; whether the beneficiary nomination is current and not lapsed; contributions and cap usage for those still contributing; whether the minimum pension drawdown was met; and, for pension-phase retirees, the Transfer Balance Account position relative to the cap.

How often do binding death benefit nominations expire?

Binding lapsing nominations — the most common type — typically expire three years after they're made or last renewed. They lapse silently, with no automatic notification, so a nomination made years ago may no longer be in force. If it lapses, the death benefit is usually paid according to the fund trustee's discretion or default rules, which may not reflect the member's actual wishes. Checking nomination status is a standard part of the annual super statement review.

What happens if I don't meet my minimum pension drawdown for the year?

If a retiree in pension phase fails to draw at least the minimum percentage required for their age bracket during the financial year, the pension can lose its tax-free earnings status for that year — a meaningful and avoidable cost. The annual statement shows both the payments actually received and the applicable minimum, making this an easy but important check as part of a yearly review.

Should retirees cancel insurance held through super?

It depends on need, not just cost. Many retirees have accumulated enough wealth that a life or TPD lump sum payout wouldn't materially change their family's financial position, making the ongoing premium pure cost. However, TPD cover through super typically ends at 65 and life cover at 70 anyway, and cancelling cover is a one-way decision — reinstating it later usually requires medical underwriting and may not be possible. The review question is whether the cost still reflects a genuine need, weighed against the practical difficulty of getting cover back later.

A note on advice. This article is general information only and doesn't account for your personal circumstances. Everyone's situation is different — before acting, it's worth talking it through with a licensed adviser who knows your full picture.