APRA and ASIC Urge Superannuation Trustees to Improve Retirement Outcomes for Members

Finance

APRA and ASIC have called on superannuation trustees to enhance their efforts to evaluate the impact of strategies aimed at improving retirement outcomes for members. This request follows a recent pulse check that revealed trustees have made progress but significant gaps remain a year after a joint APRA and ASIC thematic review identified a lack of urgency from trustees in embracing the Retirement Income Covenant.

In a follow-up survey of the broader superannuation industry, APRA and ASIC asked trustees to report on their response to the recommendations and findings of the thematic review. Trustees shared challenges in implementing the covenant, including uncertainty around financial advice frameworks, privacy and security concerns, and a lack of member engagement and financial capability.

APRA Deputy Chair Margaret Cole expressed concern over the lack of progress in tracking the success of strategies. ASIC Commissioner Simone Constant highlighted the importance of trustees’ role in improving retirement outcomes, with approximately three million Australians expected to join the six million already eligible to access their superannuation savings over the coming decade.

While the survey indicated trustees are working to refine their implementation strategies, APRA and ASIC expect trustees to identify opportunities to accelerate progress and address gaps, including by learning from examples of progress outlined in the industry update. The update is available on APRA’s website.

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