The Committee for Sustainable Retirement Incomes (CSRI) has been developing a sustainable retirement income scorecard in an attempt to improve consumer outcomes from the superannuation industry.
The scorecard would look at members of the superannuation industry’s strategy and governance, assessment of member outcomes, investment strategies and products, financial advice and how they understood and engaged members.
CSRI said that, “given that the ultimate purpose of superannuation is to provide consumers with income in retirement, the CSRI seeks to encourage the industry to give greater attention to the consumer it serves”.
The Productivity Commission’s (PC’s) report on the efficiency and competitiveness of superannuation emphasised that the industry needed to improve consumer outcomes.
The Royal Commission, too, highlighted the importance of non-financial indicators of performance to serve consumers’ interests.
The CSRI said that the Scorecard could help provide improve these areas.
“Investment returns are obviously part of this, but so is the need for greater transparency, accountability and the provision of meaningful information to members so they can make informed decisions,” the Committee said.
“The CSRI Scorecard is an important initiative that will encourage super funds to help consumers manage the complex financial risks they face and improve confidence in the retirement income system.”