ISA broadly supports ASIC’s proposals to update the relief and guidance for super calculators and retirement estimates.
However, to improve retirement outcomes for more members, we recommend the following changes.
- Less emphasis on the role of personal advice: The proposed relief and guidance continue to emphasise that members should not rely on super forecasts and instead, should seek personal advice before making decisions about their super. This undermines the utility of these tools and does not reflect the reality that most members will not seek personal advice for a range of reasons.
- Providing retirement estimates to more members: Funds should be able to rely on the relief to provide retirement estimates to members who are over 67 years of age (regardless of whether they are in the accumulation or retirement phase) and to members who are in the retirement phase.
- Inclusion of age pension in static retirement estimates: Funds should be able to include age pension amounts in static retirement estimates.
- The assumed inflation rate should be 2.5 per cent: 2.5 per cent is a more appropriate figure that is consistent with the inflation rate target set by the RBA of 2-3 per cent. ASIC should monitor the set assumed inflation rate and update the relief instrument as needed, to ensure consistency with the RBA’s inflation rate target.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.