When it comes to superannuation, many Australians take comfort in knowing their money is invested with a well-known industry fund. These funds are typically low cost, well regulated, and designed to make investing simple and for many people, especially early in their working lives, that approach works just fine.
Early in your career, the key with superannuation is simply to get your balance established. Whether through employer Super Guarantee contributions or small amounts of salary sacrifice, consistent contributions help build momentum and allow compounding to start working in your favour. Starting early matters far more than contributing large amounts straight away.
But as balances grow and retirement gets closer, an important question starts to emerge:
Is a one-size-fits-all super option still the right fit for your retirement planning?
For many individuals and families we work with in Bendigo and across Regional Victoria, this is where the conversation begins to shift.
Why industry super funds work well — to a point
Industry super funds are built to serve millions of members at once. Their default and diversified investment options are designed around an “average” member — balancing growth, risk and cost efficiency for a broad population.
This structure offers some clear advantages:
· Simplicity and convenience
· Competitive fees
· Broad diversification
· Minimal decision-making required
For many Australians, particularly with smaller balances or limited engagement, this is a sensible starting point.
However, what often gets overlooked is that simplicity comes with trade-offs.
The hidden limitation: lack of control
Most industry fund investment options are multi-manager portfolios. Once you select an option, the underlying investments are largely out of your control.
That means:
· You may be exposed to assets you wouldn’t personally choose
· Underperforming or outdated investments can remain in place
· There’s limited ability to adjust the portfolio as your circumstances change
· Your investment mix may gradually become more conservative — without you realising
This isn’t usually obvious during calm markets. It often only becomes apparent during periods of volatility, or when performance doesn’t quite align with expectations.
At that point, many people feel stuck — invested, but unable to meaningfully adjust course.
What is a tailored investment portfolio?
A tailored investment portfolio takes a different approach. Rather than relying on a pre-built option designed for the average member, the portfolio is constructed around your specific situation.
This includes:
· Your retirement goals and timeframes
· Your tolerance for risk and market volatility
· Your income needs (now or in retirement)
· Your broader financial position, including tax considerations
Importantly, a tailored portfolio allows for intentional inclusion and exclusion — meaning investments are chosen because they add value, not simply because they’re part of a default structure.
It’s not about chasing higher returns
A common misconception is that tailored portfolios are about trying to “beat the market”.
In reality, the focus is usually on:
· Smoother investment outcomes over time
· Reducing unnecessary or uncompensated risk
· Avoiding investments that no longer suit your stage of life
· Maintaining flexibility as markets and personal circumstances change
For people approaching retirement, this kind of control can be just as important as returns themselves.
The real risk: doing nothing
One of the biggest risks we see in retirement planning is not market volatility — it’s inaction.
As superannuation balances grow, the cost of being in an investment structure that no longer fits can quietly compound over time. What once felt “good enough” may slowly become misaligned with your needs, without any obvious trigger to prompt change.
This is especially relevant for:
· Pre-retirees within 5–10 years of retirement
· Individuals with larger or growing super balances
· People seeking greater certainty and clarity heading into retirement
Industry fund or tailored portfolio — which is right for you?
This isn’t about saying industry super funds are “bad” or that everyone should have a tailored portfolio. Both approaches can be appropriate — it simply depends on your circumstances, preferences and priorities.
The more important question is:
Are you comfortable leaving your retirement outcomes in a structure designed for the average Australian — or would a more tailored approach better support your goals?
Final thoughts
In our experience working with clients across Bendigo and surrounding regional communities, many people don’t need wholesale change — they simply need clarity.
Understanding how your superannuation is invested, what risks you’re exposed to, and whether your current setup still supports your retirement planning can make a meaningful difference to long-term outcomes.
Sometimes, the most valuable step is simply reviewing what you already have.
If you’re unsure whether your superannuation investment approach is still right for you, seeking personalised advice can help clarify your options and ensure your retirement planning remains on track.