#16. Co-hosts Neil Benson and Sarah Penn return for the first episode of 2026 with a roundup of big news and trends in the superannuation industry.

Highlights

• Holiday updates: Neil did some DIY renovations and Sarah struggled to find a builder, opting for travel instead.
• CSLR debate: Misha Schubert from the Super Members Council suggests SMSFs should pay for the Compensation Scheme of Last Resort, not industry fund members; both hosts agree she has a fair point.
• Managed investment schemes: Discussion of how APRA-regulated funds often use managed schemes and why strong investment governance is critical, especially in light of recent investment failures.
• Investment performance tests: Schubert’s call for performance tests on every super investment option prompts debate about the practicality versus potential benefits, with both hosts questioning the cost-benefit of such extensive reforms.
• Member engagement survey: SMC data shows younger, more educated members are much more engaged, but Neil and Sarah note the correlation is likely skewed by survey respondent bias and income/balance factors.
• Super fund branding and advertising: The hosts discuss the pros and cons of memorable ad campaigns, from hairy mascots to high-profile sports sponsorships, and examine their impact on fund awareness and acquisition.
• Third party administrator shakeup: Upcoming acquisition of Mercer’s admin business by Apex signals increased consolidation; the hosts express concerns over whether this will drive real improvements in service quality.
• Outsourcing vs. insourcing: Large funds may increasingly bring admin back in-house to manage cost and service quality, leading to more hybrid operating models.
• The “mechanistic vs. ecosystem” mindset: Sarah introduces insights from another podcast advocating for treating businesses and the super industry as living systems rather than machines—emphasizing test-and-learn approaches and accounting for human complexity rather than blaming process participants.
• Claims management complexity: Discussion on why systemic, ecosystem-level solutions are needed for claim delays rather than blaming individuals.

Big Idea

The Problem of Mechanistic Thinking

Christmas gifts

• Favourite: Sarah's new Owala waterbottle
• Least favourite: An 'avocado knife'. With apologies to Neil's wife!

That Super Show

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Sarah Penn

Sarah Penn is the CEO and founder of Mayflower Consulting, an Australian financial servi