Super funds have implemented Stronger Super and MySuper reforms either for compliance, or as a chance to innovate, Mercer said.
The firm said around 20 per cent of MySuper default products had lifecycle investing integrated into it.
"We believe there has been a shift in Australians' awareness and acceptance of lifecycle investing and we expect the trend of increasing lifecycle investment options will continue," managing director David Anderson said.
"There are perceived challenges we believe can be overcome and we expect the number and nature of the solutions will evolve over time."
Anderson added the Stronger Super reforms could be seen as an opportunity to innovate or simply "repackage" existing products.
The Centre for International Finance and Regulation (CIFR) and Chant West recently found most industry and public sector funds simply re-branded their current balanced default options as their MySuper offering.
They said most funds did not re-examine or change their offerings, while certain funds in the public sector that manage default money did not obtain a MySuper license.
These funds, which were not Australian Prudential Regulation Authority-regulated, were located in South Australia, Western Australia and Tasmania.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.