Consultation Paper 203 proposes to update the original ASIC guidance issued in December 2011 on age pension estimates in superannuation forecasts. The consultation paper will update Regulatory Guide 229.
CP 203 clarifies that superannuation funds will be allowed to rely on "prescribed assumptions about contributions and earnings in calculating a member's retirement estimate".
"We do not expect the super fund to make specific inquiries to determine whether the member's individual circumstances match the prescribed assumptions," said ASIC.
In addition, CP 203 proposes to allow superannuation funds to include the age pension as part of a retirement estimate.
ASIC Commissioner John Price said CP203 proposes to "broaden the ability of super funds to use retirement estimates if they wish".
"With the continued growth of the super sector, it is vital that fund members remain confident and informed about the prospects of their fund. The updated guidance will allow trustees to provide more accurate estimates in this regard," Price said.
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
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