ob体育 has released Regulatory Guide 276 Superannuation forecasts: Calculators and retirement estimates (RG 276) and a new legislative instrument updating the relief which facilitates the provision of superannuation calculators and retirement estimates.
Superannuation calculators and retirement estimates are low-cost forecasting tools that are intended to be a helpful prompt for consumers to review their financial situation, and if appropriate, seek further information or financial advice. Entities, such as superannuation trustees, that provide these tools to consumers within the terms of ob体育鈥檚 relief are exempt from certain regulatory requirements related to providing personal financial advice.
ob体育 Commissioner Danielle Press said, 鈥楽uperannuation calculators and retirement estimates are important tools that can help consumers engage with their superannuation, especially as they approach retirement.
鈥榦b体育鈥檚 guidance will give greater clarity to trustees about how they can use calculators and retirement estimates as part of their strategies under the retirement income covenant, which came into effect on 1 July 2022.
鈥楾he updated relief will also provide greater flexibility in how trustees can give retirement estimates to their members, including through interactive tools. It introduces a single framework for setting economic and financial assumptions across both retirement estimates and superannuation calculators. We expect trustees that choose to provide these tools to do so in a way that fosters informed decision making by members, without promoting specific financial products,鈥� Ms Press said.
The new relief for superannuation calculators and retirement estimates is set out in . This instrument took effect on 1 July 2022.
ob体育 has provided a transition period of six months, during which providers of superannuation forecasts may rely upon either the existing relief or the new relief. Only the new relief will be available from 1 January 2023. The existing relief is provided through (for superannuation calculators) and (for retirement estimates).
ob体育 has made consequential amendments to remove superannuation calculators from and the accompanying Regulatory Guide 167 AFS Licensing: Discretionary powers (RG 167) from 1 January 2023. ob体育 has also made some minor and machinery changes to Instrument 2016/207 with immediate effect, including to clarify that users should be able to input or change the inflation assumptions.
Background
Superannuation calculators and retirement estimates may involve personal financial advice. ob体育 gives class order relief from Australian financial services (AFS) licensing and personal advice requirements in the Corporations Act 2001 for providers of these tools.
ob体育 updated the relief following consultation with industry through Consultation Paper 351 Superannuation forecasts: Update to relief and guidance (CP 351) (refer 21-309MR). We received 29 submissions in response to CP 351. ob体育鈥檚 response to those submissions is summarised in Report 731 Response to submissions on CP 351 Superannuation forecasts: Update to relief and guidance (REP 731). ob体育 also sought advice from the Australian Government Actuary on key actuarial issues.
Under ob体育鈥檚 relief, a financial calculator, including a superannuation calculator, may be provided by any person, and a retirement estimate may only be provided by a superannuation trustee. To rely on ob体育鈥檚 relief, providers must comply with the conditions set out in the legislative instruments.
ob体育 offers consumers a range of resources relating to superannuation and retirement through the website. ob体育 has updated some assumptions in the Moneysmart superannuation and retirement calculators so they are consistent with key aspects of the settings in the new relief. Separately, ob体育 will be reviewing the investment and fee assumptions for the Moneysmart calculators with a view to incorporating any further updates by September 2022.
Download
- Regulatory Guide 276 Superannuation forecasts: Calculators and retirement estimates (RG 276)
- Non-confidential submissions to Consultation Paper 351 Superannuation forecasts: Update to relief and guidance (CP 351)
- Report 731 Response to submissions on CP 351 Superannuation forecasts: Update to relief and guidance (REP 731)
- Regulatory Guide 167 AFS Licensing: Discretionary powers (RG 167)