The Australian Securities & Investments Commission has published Report 818, warning that many superannuation members may not be receiving timely, meaningful information to support retirement decisions and that trustees are showing a lack of urgency in improving retirement communications. The review found retirement messaging is often generic and primarily directed at pre-retirees, with missed opportunities to engage members throughout retirement despite retirement income covenant obligations applying since 1 July 2022. ASIC reviewed 12 Registrable Superannuation Entity licensees representing more than 9.3 million member accounts and AUD 1.14 trillion in assets, covering practices since the covenant began to 11 December 2024. The findings included significantly fewer communications tailored to retired members, limited evidence of tailoring to diverse needs and preferences, and a lack of specific retirement communications for vulnerable members, with one third of trustees lacking a formal process to consider member feedback. The report sets out better practice examples and calls to action including focusing communications on retirement guidance rather than product promotion, using meaningful member groupings and nudges, improving accessibility for culturally and linguistically diverse members and members with a disability, adequately resourcing governance and oversight for retirement income and communications strategies, and strengthening oversight of external service providers. ASIC said it will work with the Australian Prudential Regulation Authority to hold trustees to account for covenant compliance, including publishing results from the latest joint Retirement ‘Pulse Check’ later this year. Moneysmart has also updated retirement and insurance content for First Nations communities and will continue expanding content based on consumer research.

Original source View in tracker