Retirement income covenant
Following amendments to the Superannuation Industry (Supervision) Act 1993, all registrable superannuation entity (RSE) licensees are required to have formulated a retirement income strategy from 1 July 2022. This strategy is to be implemented through a continuous improvement process over time.
On 7 March 2022, ob体育 and APRA issued a聽joint letter to assist RSE licensees with implementation of a new retirement income covenant.
Joint thematic review
ob体育 and APRA conducted a joint thematic review of how superannuation trustees are supporting their members under the Retirement Income Covenant.
Following the thematic review, ob体育 and APRA released Report 766 Implementation of the retirement income covenant: Findings from the APRA and ob体育 thematic review (REP 766) and published Media Release (23-191MR) Review finds super trustees need to improve retirement outcomes planning (18 July 2023).
APRA has also published聽聽to assist RSE licensees in developing their retirement income strategies.
Trustees may find the following resources useful in considering what support for members to implement as part of their retirement income strategy.
Superannuation forecasts
ob体育 provides legislative relief for the provision of superannuation calculators and retirement estimates. For more information see Regulatory Guide 276 Superannuation forecasts: Calculators and retirement estimates (RG 276).
Moneysmart content
础厂滨颁鈥檚 website has information and calculators (including a ) to help consumers make informed financial decisions about their superannuation and retirement. Moneysmart content can be drawn on, or linked to, by superannuation trustees.
Trustees may find the content on the useful in preparing their retirement income strategy. The hub has information about:
- transition to retirement
- estimating retirement income
- where retirement income can come from, including superannuation, the Age Pension and government benefits, and reverse mortgages and home equity release
- options for withdrawing super, including account-based pensions, annuities and lump sums
- downsizing and aged care.
Other trustee obligations
In thinking about their retirement income strategy, trustees may find it useful consider their other obligations. The material on our Superannuation guidance, relief and legislative instruments page may be helpful in understanding their product design and distribution, and advice obligations.
Further reports and guidance
Report 766 Implementation of the retirement income covenant: Findings from the APRA and ob体育 thematic review (REP 766)
Media Release (23-191MR) Review finds super trustees need to improve retirement outcomes planning (18 July 2023)
Report 632 Disclosure: Why it shouldn鈥檛 be the default (REP 632)
Regulatory Guide 38 The hawking prohibition (RG 38)
Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance (RG 234)
Regulatory Guide 276 Superannuation forecasts: Calculators and retirement estimates (RG 276)
聽by Margaret Cole, Deputy Chair, APRA and Jane Eccleston, Senior Executive Leader, Superannuation and Life Insurance, ob体育, at the Conexus Retirement Conference, 8 August 2023.