Towers Watson has called on ASIC to amend the class order on retirement estimates to include projections that reflect age pension benefits.
"Towers Watson has consistently advocated that retirement estimates show both the projected retirement income expected from the superannuation fund benefit alone and when it is combined with the age pension," Towers Watson senior consultant John Burnett said last week.
In December last year, ASIC released a class order that enabled funds to issue retirement estimates without holding an Australian financial services licence, or issuing a statement of advice and financial services guide.
But this class order does not extend to estimates that include age pension benefits.
Burnett said the firm continues to lobby to amend the ASIC class order.
"Lobbying continues to amend ASIC's class order so that the age pension can be factored in, as it will remain a key element of the retirement incomes system for most retirees for a significant time to come," Burnett said.
In the past, Towers Watson argued that the provision of retirement estimates to members should be mandatory.
Burnett argued that too few people receive information about their projected income when they could still make a difference.
"The industry spends considerable resources trying to get fund members to engage with their super but, so far, the most important piece of information that members need is mostly absent," he said last week.
"Put simply, far too few people receive information about their projected retirement income while they are working and still able to take steps to change the outcome.
"This may mean incorporating strategies such as a decision to retire later, making additional contributions to super or a change in investment policy."
Burnett urged funds to take immediate action in this area.
"Now is the time to start issuing retirement estimates annually in a way that works for both the member and fund," he said.
