Standard investment labels needed to cut complexity in super: Rest

Standardised investment option and product labels that allow clear and meaningful comparisons are essential to addressing the complexity many members are struggling with, according to Rest, one of Australia’s largest profit-to-member superannuation funds.

A survey of Rest members, conducted by Redbridge Group¹, shows only 37% of members say they find super and retirement products easy to understand.

The survey also shows an overwhelming majority of Rest members (84%) say that clearer, plain-language super and retirement products would make it easier for them to understand and compare their options.

Rest’s Chief Investment Officer, Michael Clancy, says consistent and standardised investment option and product labels are particularly important in light of ongoing Treasury consultations on improving consumer protections, and changes to strengthen the superannuation performance test.

“An unacceptably high number of our members say they find super and retirement products too complex. We want to help them be confident in their financial future so they can enjoy their best retirement,” says Mr Clancy.

“We believe the inconsistent labels applied to investment options is a significant contributor to this confusion. It can be very difficult for members to make like-for-like comparisons of product features and risk levels.

“Many funds offer an investment option named ‘Balanced’, for example, but there can be a wide disparity in these options’ individual risk and return profiles. One fund’s ‘Balanced’ option can be very different to another fund’s option with the exact same name.

“This makes it hard for members to make meaningful comparisons and, worse, can inadvertently expose them to a level of risk they may not be comfortable with were they better informed.

“Recent high profile fund collapses have caused significant financial harm, and it is essential that our consumer protection frameworks are fit for purpose. Standard labels could help prevent losses that occur when consumers enter options or products that they don’t understand or are unsuitable for their risk profile.”

Rest is calling on the Australian Government to work with industry to develop a standardised labelling framework that applies consistent risk categories and descriptors across comparable investment options.

This builds on the work the Government has already undertaken to develop a product labelling regime for ‘sustainable’ investment products, which Rest has supported.

“Members could benefit greatly from standardised investment labels that apply consistent definitions for different risk categories like ‘Conservative’, ‘Balanced’ and ‘Growth’,” adds Mr Clancy.

“A framework based on standardisation and consistency would improve transparency and allow members to make more meaningful comparisons as well as better-informed decisions.”

Rest advocated for this proposal in its Pre-Budget Submission 2026-27 and has reiterated this call in its submissions to Treasury on Strengthening the Superannuation Performance Test, Enhancing Member Protections and Sustainable Investment Product Labelling.

¹ Research conducted by Redbridge Group, on behalf of Rest, via an online survey of 1,450 Rest members aged 18 and above between 25 March and 8 April 2026. The data is weighted based on gender and age weights to reflect Rest’s membership profile.