POWERED BY MOMENTUM MEDIA
Aware endorses RIC
Aware Super has welcomed the draft Retirement Income Covenant (RIC) legislation but the industry will need the right policy settings to allow superannuation funds to provide appropriate and personalised retirement income guidance.
In its submission to Treasury on the draft legislation, Aware Super said it was critical funds were able to tailor their approach to the individual needs of members to deliver the best retirement outcomes.
Aware Super chief executive, Deanne Stewart, said she looked forward to the RIC passing into legislation as soon as possible.
“In everybody’s superannuation journey, the retirement phase is absolutely critical. After all, ensuring that members have dignity in retirement is the whole point of the super system. And yet, for too long, the retirement phase has been the poor cousin of the accumulation phase,” she said.
“It’s pleasing that the importance of the retirement phase will now be recognised in legislation as all super funds have a responsibility to help their members get the best possible outcomes, not only as they plan for retirement, but as they live it too.”
Aware Super said the upcoming Quality of Advice Review should consider how intrafund advice could be better used to deliver high-quality, affordable advice to members.
It encouraged the Government to give priority consideration to regulations that made it easier for funds to offer meaningful, consistent information to every member, through tools such as enhanced calculators and income projections.
“When it comes to retirement, you can’t take a one-size-fits-all approach. The proposed Retirement Income Covenant acknowledges that, but we’d also like to have the framework in place to provide more support to all members as they approach and enter retirement,” Stewart said.
“Most members won’t need full, comprehensive advice to achieve a better retirement. But the right help at the right time really can make all the difference.
“We strongly believe that all super members should have access to quality, affordable, tailored help to support them to feel confident to spend their savings in retirement.
“To deliver on this, it is critical there is greater clarity around the scope to provide intrafund advice and other less complex support services.”
Recommended for you
The firm is offering Australians lower fees and improved transparency with its exclusively exchange-traded fund (ETF) portfolios.
Senator Andrew Bragg has pressed funds that attended the super summit in the US, demanding answers on costs, compliance with their best financial interests duty, and the decision-making process behind their participation.
A top Treasury official has shed light on the confidential document that circulated among funds this month, telling Senate estimates Treasury is “testing a hypothesis”.
During Senate estimates, it was insinuated that if AustralianSuper had been a retail fund, it would have faced a much larger fine.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.45 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
30.48 3 y p.a(%)
