Baby boomers will have their retirement plans disrupted as a result of the new rules on concessional tax limits announced in last week's budget, according to the Australian Institute of Superannuation Trustees (AIST).

The peak industry body has called on the government to rethink the rules that will see the annual cap on concessional superannuation contributions for those people aged over 50 slashed from $100,000 to $50,000.

For those people under 50, the transitional cap will fall from $50,000 to $25,000.

While AIST chief executive Fiona Reynolds supported the concessional cap for younger workers, she wants the government to either extend the transition period past 2012 for those over 50 or allow this age group a higher cap.

"Those aged 50 or over have only had seven years of compulsory superannuation at 9 per cent, so it's no surprise that their super balances are in most cases very low," Reynolds said at the annual AIST post-budget analysis meeting held in Sydney yesterday.

"We should also be mindful that the superannuation balances of older workers will have less time to recover from the global economic downturn."

AIST, together with Colonial First State Global Asset Management, has also launched a new course to provide super funds trustees with guidance on incorporating environmental, social and governance (ESG) issues into their investment strategies.

"Super funds and other investors are increasingly recognising that they must protect and manage their investments for the long term by considering ESG in their decision-making processes," Reynolds said.

Minister for Superannuation and Corporate Law Nick Sherry recently asked the Australian Prudential Regulation Authority to review super fund trustee guidelines on ESG investment considerations.