Chalmers to release new super retirement principles, reporting rules
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The news: The Albanese government is releasing new best practice principles and a reporting framework for super fund trustees after regulators found many were not investing sufficiently in retirement income solutions for their members.
The numbers: Australians hold $4.5 trillion in superannuation, and more than 2.5 million of them are expected to retire in the next decade.
The context: ASIC and APRA, which surveyed the industry’s implementation of the Retirement Income Covenant last year, in November called out a widening gap between funds adequately supporting retiring members and those that were not. That was despite the covenant having legally required funds to have retirement strategies in place since 1 July 2022.
Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino announced two measures developed in consultation with industry: Best practice principles to guide trustees on designing and delivering retirement income solutions, and a retirement reporting framework to collect data and improve transparency across the sector.
What they said: “Australia already has a world class retirement system, and we are improving it to ensure Australians get better information, better choices and better service for the secure retirement they need and deserve,” Chalmers said.
“Together, these measures strengthen the retirement phase of super so Australians can enjoy a confident retirement.”
Research by the Australian Government Actuary has found that lifetime income products, which the principles would encourage funds to offer, can lift retirement income by 15–30% compared with minimum drawdowns from an account-based pension.
“Australia’s superannuation system was designed to provide a dignified retirement for all Australians and it has been a stunning success,” Mulino said.
“These reforms will consolidate that success and support funds to innovate and deliver better retirement outcomes for their members.”
The source: Treasurer statement
