The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) published the 2025 Retirement Income Covenant (RIC) Pulse Check report, assessing how superannuation trustees are developing retirement income strategies for members approaching or in retirement. The report finds the gap is widening between trustees actively driving better retirement outcomes and those making only incremental changes, and reiterates that trustees should meet the better practices outlined in the report. RIC obligations commenced on 1 July 2022 and require trustees to maintain a retirement income strategy that helps members balance maximising income, managing expected risks and having flexible access to funds. The update highlights the scale and urgency of effective strategies, citing more than 1.5 million Australians already in retirement, a further 2.5 million expected to enter retirement over the next decade, almost AUD 600 billion in retiree savings held in superannuation, and an expectation that two in five trustees will have more than half their members in retirement by 2045. APRA and ASIC will provide individual feedback to trustees and continue engagement with Treasury on retirement-phase initiatives, including the proposed Best Practice Principles for Retirement Income Solutions and the Retirement Reporting Framework. ASIC will continue updating Moneysmart guidance for consumers, and APRA has committed to including retirement products in its 2026 Comprehensive Product Performance Package.
Australian Prudential Regulation Authority 2025-11-26
Australian Prudential Regulation Authority and Australian Securities and Investments Commission publish 2025 Retirement Income Covenant Pulse Check and press trustees to lift implementation
APRA and ASIC released the 2025 Retirement Income Covenant Pulse Check report, highlighting disparities in superannuation trustees' retirement income strategies. The report stresses the need for improved practices to enhance retirement outcomes, as required by RIC obligations since July 2022. APRA and ASIC will provide feedback to trustees, engage with Treasury, update consumer guidance, and include retirement products in APRA's 2026 performance package.