Members should beware the risks of super funds leveraging up
Once borrowing is introduced at a major fund level, trustees are no longer just managing liquidity. They are changing the underlying risk settings of members’ retirement savings.
There is a simple reason Australia’s superannuation system has earned public trust: it is built and governed to protect retirement savings, not to stretch for extra balance-sheet flexibility.
That is why the long-standing prohibition on borrowing by super funds matters. It is not a technical inconvenience. It is a foundational safeguard.
