Glide Path Superannuation: Age-Based Investment Strategies for Australians

When it comes to superannuation in Australia, the phrase ‘set and forget’ no longer cuts it. Enter the glide path: an investment strategy that dynamically shifts your super portfolio’s risk level as you move closer to retirement. In 2025, as more Australians demand smarter, more adaptive super solutions, understanding the glide path approach is essential for maximising your nest egg and avoiding retirement pitfalls.

What Is a Glide Path?

In the context of superannuation and retirement planning, a glide path is a predetermined investment roadmap that gradually reduces your exposure to riskier assets (like shares) as you approach retirement. Early in your working life, your super is tilted towards growth assets to capitalise on long-term market gains. As you age, the allocation shifts towards defensive assets—such as bonds and cash—to preserve your savings and reduce the risk of market downturns eroding your retirement income.

• Growth phase (20s–40s): Heavier weighting to shares and property for maximum growth potential.
• Transition phase (50s–60s): Gradual shift towards bonds and defensive assets to cushion volatility.
• Retirement phase (65+): Focus on capital preservation and stable income streams.

Think of it as your investment journey’s autopilot—calibrated to get you safely to your retirement destination, regardless of market turbulence along the way.

Why Are Glide Paths Gaining Traction in 2025?

The 2025 superannuation landscape is evolving rapidly, with new regulations and consumer preferences shaping how funds manage risk. The introduction of the Retirement Income Covenant in 2022 prompted funds to focus on sustainable income for members, and the trend has only accelerated. Major super funds now offer ‘lifecycle’ or ‘lifestage’ options, which use glide path principles to automate asset allocation changes based on your age or proximity to retirement.

Key reasons glide paths are making headlines this year include:

• Market Volatility: After years of pandemic-era uncertainty and cost-of-living pressures, Australians want smoother, less stressful investment rides as they near retirement.
• Regulatory Push: APRA and ASIC have increased scrutiny on default MySuper products, requiring funds to prove they’re managing risks appropriately for all age cohorts.
• Technology Advances: Sophisticated portfolio management systems make it easier for super funds to offer tailored, dynamic glide paths at scale.

For example, AustralianSuper’s ‘Balanced’ option now automatically scales back from over 80% growth assets in your 30s to less than 50% by age 65, while REST’s ‘Core Strategy’ and Hostplus’ ‘Lifecycle’ product offer similar phased de-risking.

Is a Glide Path Right for You?

While the glide path approach offers clear benefits, it isn’t a one-size-fits-all solution. Your ideal investment mix depends on factors like your risk appetite, financial goals, expected retirement age, and other income streams. Here’s what to consider:

• Personalisation: Some funds now allow you to tweak the glide path—accelerating or slowing de-risking based on your circumstances.
• Market Conditions: 2025 has seen relatively high inflation and shifting interest rates. Glide paths automatically adjust for these macro factors, but it’s important to check your fund’s assumptions and glide slope.
• Retirement Goals: If you plan to work longer, you may prefer a slower glide. If you’re keen to lock in gains early, a steeper glide could be more appropriate.

Ultimately, a glide path can help take the guesswork out of superannuation investing and protect your savings during the vulnerable years leading up to and just after retirement. However, review your fund’s glide path details, as the speed and timing of asset allocation changes vary widely between providers.

Comparing Glide Paths: Real-World Examples

Let’s look at two Australians in 2025:

• Sarah, 35: Her super fund’s glide path keeps her invested in 85% growth assets, maximising long-term returns. She’s comfortable with short-term market swings.
• Greg, 62: His fund has shifted him to 55% defensive assets, shielding him from major downturns just as he prepares to retire.

Funds like Sunsuper, UniSuper, and Cbus all now publish their glide path models online, so you can see exactly how your asset allocation will change over time. Some even offer calculators to visualise the impact of different glide slopes on your projected retirement income.

The Bottom Line

The glide path approach is reshaping how Australians invest for retirement, offering a smarter, more adaptive path to financial security. Whether you’re decades from retirement or just a few years away, understanding and choosing the right glide path can make a significant difference to your super balance when you need it most.