The Association of Superannuation Funds of Australia (ASFA) welcomes the release of ASIC and APRA’s industry update, ‘Pulse check on retirement income covenant implementation,’ which reviews the early-stage progress of superannuation funds’ implementation of the retirement income covenant. The covenant came into effect on 1 July 2022.
The pulse check acknowledges the progress made by the superannuation industry in implementing the covenant in the relatively brief period since it was introduced. It reveals that most funds are actively working to better understand their members’ retirement needs and have made substantial investments to provide members with access to retirement-focused information.
ASFA acknowledges funds’ prioritisation of the covenant’s implementation, especially in the current environment of macroeconomic uncertainty, financial market volatility, and increased demands on the superannuation industry to protect members’ financial security in retirement amidst cost-of-living pressures.
“This pulse check will help guide super funds’ next steps to fully implement the covenant. ASFA welcomes this as a roadmap for funds as they continue to work for better outcomes for Australian retirees,” said ASFA Chief Executive Officer Mary Delahunty.
“We also welcome the pulse check’s valuable insights into the implementation challenges funds face. These include uncertainty around the financial advice framework flowing from the Quality of Advice Review, the availability of member data that complies with privacy and security standards, and the lack of engagement from members,” Delahunty continued.
“Collaboration between regulators, industry bodies, and funds is essential in addressing these challenges. Our upcoming Spotlight on Retirement to be held in Melbourne on 31 July, provides a prime opportunity to collaborate with our members, government, regulators, and industry stakeholders to drive dialogue, and innovative solutions to Australia’s retirement challenges,” Delahunty concluded.
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA, the voice of super, is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
