Episode #32
Prime and Aware Merger, Fee Hikes, and the Pricing Challenge in Superannuation
#32. Neil Benson unpacks the growing pressure on Australian superannuation funds to clearly explain what members pay for, and whether scale, complexity, and rising costs are delivering genuine value. Central tension: As more funds merge, raise fees, or tweak insurance, the old argument that "bigger is better" isn't enough. Members, regulators, and boards now demand concrete proof that these changes actually improve retirement outcomes, service, and member experience—especially as costs climb and the product gets more complex to explain. Key arguments and questions explored: Mergers like Prime Super and Aware Super may boost size, but Neil challenges whether these scale plays tangibly benefit members, especially from the dominant fund's perspective. Insurance changes at BUSSQ Super underline difficult trade-offs between providing better cover and increasing cost, especially for underinsured sectors. The real issue is whether members understand (and want) what they’re getting. Fee increases at giants like AustralianSuper raise hard questions: If scale was supposed to lower costs, why are fees going up? Is new spending—on tech, cyber, compliance—making members’ lives better, or just making the business bigger? As funds like Spaceship Super seek higher fees to enter complex investments like private credit, Neil warns it’s not enough to promise higher returns; funds owe members a transparent, easily understood rationale. The big challenge across these stories: Can funds make their increasingly sophisticated offerings understandable and defensible without alienating members or regulators? Who should listen: Fund trustees or executives facing member questioning about mergers, fees, or insurance changes CX, product, and insurance leads in super funds wrestling with how to communicate value to disengaged or skeptical members Anyone in superannuation tasked with justifying strategy to regulators or boards RESOURCES Prime Super and Aware Super announce plans to explore Successor Fund Transfer AustralianSuper lifts administration fees while investment costs decline BUSSQ ups insurance cover, costs Spaceship Super ups fees on private credit exposure That Super Show That Super Show is the most downloaded podcast for Australian superannuation professionals. Sarah and Neil cover the issues, debates and decisions shaping the industry - without the spin. Subscribe to the show wherever you listen to podcasts and don't forget to leave us a rating and review. Visit That Super Show website and become a newsletter subscriber Email hello@thatsuper.show if you've got a topic you'd like us to cover or a guest proposal or suggestion Follow That Super Show on LinkedIn Follow That Super Show on YouTube Your Cohosts Sarah Penn Sarah Penn is the CEO and founder of Mayflower Consulting, an Australian financial services consultancy specialising in product governance, PDS management, and product operating model design. Her team works with super funds, fund managers, and investment platforms across Australia. Connect with Sarah on LinkedIn Follow Mayflower Consulting on LinkedIn Visit Mayflower Consulting website Neil Benson Neil Benson is the global chief product officer at ChandlerCX, where he leads a team focused on intelligent customer messaging for regulated organisations, including superannuation funds, banks, insurers, utilities and public sector organisations. His AI startup, Novagentic, was acquired by ChandlerCX in February 2026. Connect with Neil on LinkedIn Follow ChandlerCX on LinkedIn Visit ChandlerCX website
