ASFA welcomes ASIC retirement income pulse check

The Association of Superannuation Funds of Australia said the latest ‘Pulse check on retirement income implementation’ shows that most super funds are working to better understand their members’ needs.

The RIC came into effect on 1 July 2022 and this week ASIC released its industry update on the progress superannuation trustees are making regarding implementing changes to ensure their members can access retirement-focused information.

The most recent pulse check revealed that while trustees have made good progress, some significant gaps remain, including a lack of urgency by trustees in embracing the intent of the RIC.

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Key observations from the pulse check show that while approximately three-quarters of trustees indicated that measuring retirement outcomes was a priority, only incremental progress had been made in measuring and tracking retirement income strategies, with just eight trustees stating that tracking the effectiveness of retirement-focused assistance to members was a priority.

The pulse check showed that many trustees were taking steps to better understand the retirement needs of their members and had endeavoured to promote the availability and access to retirement-focused information for members. However, only one in five planned improvements identified by trustees were expected to be completed by mid-2024.

Mary Delahunty, ASFA CEO, said the pulse check provides valuable insights into the implementation challenges funds face.

“These include uncertainty around the financial advice framework flowing from the Quality of Advice Review, the availability of member data that complies with privacy and security standards, and the lack of engagement from members,” Delahunty said.

“Collaboration between regulators, industry bodies, and funds is essential in addressing these challenges.”