Paula Benson AM, Chief Strategy Officer at AustralianSuper, describes this as an exciting time for superannuation – the world’s fastest growing financial system. Ahead of the ASFA Conference, 19-21 November in Sydney, she shares her insights into shaping the strategic direction for a huge super fund – especially at this time of growing retiree numbers. By Ben Power
AustralianSuper has become an utter juggernaut. With 3.4 million members and $341 billion under management, it’s now the nation’s largest super fund. And it’s growing rapidly: Each week 1400 new members join.
Given its size, the strategic direction of AustralianSuper has a huge impact, not just on its millions of members, but on the entire super industry and broader Australian financial and economic system.
Setting the direction of such a vast fund must be like steering an oil tanker. Along with chief executive, Paul Schroder, AustralianSuper’s strategic direction now rests in the hands of Chief Strategy Officer, Paula Benson.
But AustralianSuper also wants to use its clout to help enhance the overall super system for all Australians. That includes making it easier for Australians to shift between retirement and work in their later years.
“Every day in everything we do we ask: are we acting in the best interest of the members and are we strengthening the system?” Benson says.
Adopting a global perspective from the start
Benson grew up as a ‘DFAT child’. Her father worked for the Department of Foreign Affairs and Trade (DFAT). The family was based in Canberra, but Benson spent most of her childhood overseas, including New York, Tokyo and London. It fostered a love of travel and other cultures. “But what it really gives you is that global perspective which all of us need in our roles today.”
She finished school in London and went to art school for several years to pursue a love of design and textiles. But Benson decided a design career in the field wasn’t for her, so she returned to Australia and completed an undergraduate degree at UNSW and then a Masters of Journalism at UTS.
For several years Benson worked at Channel 9 as a producer– including a stint working for ALP powerbroker Graham Richardson.
“I loved working in the media, but I did find it became repetitive after a while. I felt like I had a lot to offer organisations and I was really keen to try the corporate world.”
Benson moved into corporate affairs roles, firstly at RMIT, then Alcoa and NAB. She loved it. It allowed her to combine her strategic, creative and commercial skills.
But Benson says she also looks for roles where she can “work for purpose”. She gets that drive from her parents, both of whom were very committed to social justice. “That was always the conversation at our dinner table growing up.”
During several career breaks she worked as a non-executive director of Port of Melbourne Corporation, Victorian Funds Management Corporation, and Melbourne Convention and Exhibition Centre.
Creating opportunities for growth and performance
Sitting on a board allows you to develop different skills around governance and oversight of culture and strategy, Benson says. “You also better understand what your own board are looking for so they can exercise their duties as directors.”
Benson has worked across many industries and organisations. Success, she says, depends on a clear purpose, a culture aligned to that purpose, and a compelling strategy. You then must attract and retain top talent.
But it is the super industry that has proven perfect for Benson’s skills and purpose-led drive. By 2020 she was Head of Global Brand, Marketing & Communications at global infrastructure fund manager, IFM Investors, which is owned by 17 super funds.
In September 2023 she joined industry fund giant, AustralianSuper as Chief Strategy Officer, charged with setting the strategy of the fund. Benson says she “couldn’t resist” the role given AustralianSuper’s and the industry’s critical role in the lives of working Australians. It also gave her an opportunity to work with chief executive, Paul Schroder.
We have a system that is the envy of the world. When people like Larry Fink [BlackRock CEO] start talking about how incredible the Australian superannuation system is, you know we’ve got something pretty special here. So we’re always looking to strengthen the system for members.
It’s an incredibly exciting time to be in superannuation – the fastest growing financial system in the world – Benson says.
AustralianSuper not only sits at its apex as Australia’s largest super fund, it’s the world’s fastest-growing pension fund.
In such a vast and fast-growing organisation, what does one focus on?
AustralianSuper’s strategy is based on three forces that are creating opportunities for growth and performance. “We call them the three Ws: the weight of money; the weight of member expectations and the wave of retirees,” Benson says.
The weight of money means the fund needs to effectively manage its ballooning member assets. Its $341 billion of member funds will continue to grow with the super guarantee rising from 11.5% to 12% next year.
The fund is building out its skills and capability to meet that challenge. That includes moving more investment capabilities inhouse and building international teams – AustralianSuper has added offices in New York and London. Both trends are set to continue. “Over coming years we’re going to have more investors working globally and more funds internally managed,” Benson says.
AustralianSuper’s 3.4 million members are also creating a weight of expectations. “Their expectations of us are going to only increase – exponentially too; and they have every right to have very high expectations of service.”
The fund is looking to service those members in different, flexible ways. Benson notes that more than one million of the fund’s members are now engaging through AustralianSuper’s app and member portal.
And the third W is the wave of retirees – given the nation’s ageing population, AustralianSuper must support a growing number of retirees.
AustralianSuper wants its members to be confident in their “well-deserved” retirement and confident enough to spend their money. “We are absolutely determined to be the leading fund in retirement.”
Delivering for the changing face of retirement
Retirement used to be a one-off event but Benson says it is now a “much more dynamic and staged transition”. Members are moving back and forth between retirement and the workforce; and back and forth between spending and saving. (Some 20% of AustralianSuper’s members receive a pension but are still in paid work.)
AustralianSuper wants the broader system to reflect that dynamic retirement by moving to integrated accumulation and retirement accounts. “We have been advocating to government an ‘account for life’ rather than needing a new account when you move into retirement,” Benson says.
An account for life would allow AustralianSuper to gain a holistic view of a member’s financial situation. That includes Age Pension entitlements, home ownership, and other forms of savings, assets and income. It can then provide better, more tailored advice to members so they can make more confident choices.
“We are very focused on providing guidance to members. That’s a very big focus of our chief member officer, Rose Kerlin.”
Every day in everything we do we ask: are we acting in the best interest of the members and are we strengthening the system?
Benson says that AustralianSuper’s ambition is that all Australians live well in retirement, not just its members.
“We have a system that is the envy of the world. When people like Larry Fink [BlackRock CEO] start talking about how incredible the Australian superannuation system is, you know we’ve got something pretty special here. So we’re always looking to strengthen the system for members.”
Sharing knowledge and building relationships at the ASFA Conference
In addition to her executive and board roles, Benson sits on the ASFA board. One unique aspect of ASFA, she says, is that it represents the whole value chain across super, and not just the funds. “ASFA plays such a critical role in terms of advocacy, but also helping professionals in the industry with their development.”
Benson says ASFA and the industry are “incredibly fortunate” to have Mary Delahunty as the chief executive. “She’s a very fierce advocate and very passionate about advocating for the system and for members.”
Benson, of course, will be attending the ASFA Conference in November in Sydney. She says the Conference is renowned as the premier event for bringing the whole industry together. It also allows colleagues to gain new insights and perspectives, share knowledge and understanding, and build relationships. And it’s also vital for professional development.
“I love face-to-face engagement; it gives me a lot of energy and I find that really important for doing my role.”
That role is high-powered. To add to her stress, Benson’s 17-year-old daughter is in her final year of school and completing the VCE (Victorian Certificate of Education), which means she and her husband have a couple of big months ahead.
So how does she manage work-life balance?
Benson says she “hasn’t got all that worked out” but she believes resilience is vital. She recently had Headspace – the mental health support service – spend time with her team.
Headspace said three things were vital to building resilience: a good night’s sleep, eating well and doing exercise. “I mostly get two out of three of those,” Benson says. “Exercise is really important to me and I do a lot of Pilates and play some very bad tennis; occasionally I jog around my neighbourhood.”
That resilience is helping Benson in her big job of steering the long-term direction of a giant super fund. Given the size and complexity of AustralianSuper, when will Benson know she has succeeded in her current role?
“Look, it’s a great question. Probably how long is a piece of string? Maybe we’ll come back and have this conversation again in two years and I’ll tell you. We’re absolutely committed to delivering on our strategy to ensure members are in their best financial position in retirement; to ensure that members have access to the guidance and advice they need at the right time. And the proof will be put in the pudding.”
“I am so happy right where I am. I absolutely love my job, and I love working for the members of the fund and specifically for Paul and working alongside my executive colleagues. They’re a really outstanding group of people.”
