The submission suggested that ASIC could use similar regulatory tools to the ones used for its COVID-19 measures to allow intra-fund advice on early release of super.

“If funds can give intra-fund advice about retirement adequacy including Age Pension eligibility that considers not just the member but also their household [such as their] spouse or partner and, if applicable, their dependents, this would give members greater access to affordable advice on critical topics,” the submission stated.

Industry Super Australia suggested in the submission that the intra-fund advice regime be expanded to include superannuation and Centrelink payments such as estimating Age Pension entitlements and advice which covers superannuation and non-super assets outside the fund, issues relating to the pension phase such as lump sums and allocated pensions, and transition to retirement advice.

With an ageing population, the submission noted that there is a significant number of fund members reaching the retirement phase.

“Industry funds have frequent conversations with members about when to retire, if they will have enough money on which to retire, how they can maximise Centrelink payments and how to draw down on their superannuation savings,” it stated.

“A fund member will generally think in terms of household assets when making these decisions. Funds should be able to give intra-fund advice that considers not just the member but also their household.”