ASIC has called on the superannuation industry to help more Australians understand the importance of saving for their retirement.
As part of its call, the corporate regulator has released the consultation paper, 101 Superannuation forecasts.
The paper explores ways that super providers can give their members an estimate of how much they are likely to retire with, based on the amount they have presently saved.
“Many people don’t know how much they will retire with, or what kind of lifestyle they will be able to afford. It might shock some people but we want them to see a ‘super snapshot’ of their projected end-benefit, in time for them to do something about it,” ASIC deputy chairman Jeremy Cooper, said.
The paper also researches options for super providers to create a snapshot on paper or through an online calculator.
“ASIC understands that producing useful forecasts raises many issues, such as what assumptions should be taken into account, including the likely impact of fees and costs, future contributions and earnings,” Cooper said.
Industry body the Investment and Financial Services Association (IFSA) has offered its support for the new consultation paper.
“If implemented correctly, estimates will help Australians to see how their current super savings are tracking and manage expectations regarding their likely income in retirement. Ultimately these estimates will help boost the levels of engagement in super,” IFSA chief executive Richard Gilbert said.
“We are pleased that there will be full, industry-wide discussion prior to ASIC issuing further guidance on the use of end-benefits. This is too important an issue to rush.”
