New rules for super calculators and retirement forecasts

From 1 January 2023, the new ASIC guidance ( RG 276Opens in new window ) came into effect for super calculators and retirement forecasts.

What does this mean?

Super funds and other entities that offer calculators and forecasting tools within the terms of this new relief are exempt from certain regulatory requirements related to the provision of personal financial advice. However, this relief is dependent on three conditions:

  1. No advertising or promotion of any specific financial product
  2. Must comply with presentation and disclosure requirements
  3. Default assumptions should be reasonable and set according to requirements

What are the benefits?

The new instrument - ASIC (Superannuation Calculators and Retirement Estimates) Instrument 2022/603Opens in new window - gives more clarity to super funds about how they can use calculators and estimates as part of their strategies under the retirement income covenant, and digital member guidance and advice.

“Superannuation calculators and retirement estimates are important tools that can help consumers engage with their superannuation, especially as they approach retirement.”
Danielle Press, ASIC Commissioner

The updated relief allows for greater flexibility in how funds can provide forecasts to their members as it introduces a single framework for setting economic and financial assumptions across both superannuation calculators and retirement estimates. At the same time, it also promotes clearer guidance on the disclosures and definition of superannuation calculators versus retirement estimates.

What happens now?

Funds were given six months until January 2023 to transition from the existing relief to the requirements dictated by the new guidance.

If you are a fund that relies on ASIC relief for the provision of a generic calculator or retirement estimates, this is your friendly reminder to review your calculators and/or retirement estimates to ensure they meet requirements in ASIC RG 276 and ASIC (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 from 1 January 2023.

Please contact your Client Partnership Manager if you have any questions.