Govt canvasses mandated super voice in advised retirement relationships

Mike Taylor

Managing Editor and Publisher

11 August 2025

ANALYSIS

Treasury’s consultation paper around providing guidance to superannuation fund trustees on best practice principles for retirement income solutions has canvassed those trustees involving themselves in pre-existing relationships between financial advisers and their clients.

While superannuation entities and lobby groups last week went through the customary process of welcoming the consultation process, it is financial advisers who should be alert the implications which might flow from the proposed approach.

Under the heading “Engaging with advised members” the Treasury consultation paper actually suggests that trustees engage with advised members to “empower” them to “have more informed discussion with their financial advisers”.

The consultation paper then asks stakeholders whether trustees have the capability in place to support members across different stages of life, including ahead of retirement?

“If yes, provide a brief overview of current practice. If not, why not?” the consultation asks.

The consultation paper acknowledges that “some trustees have large proportion of their membership in an ongoing financial advice relationship” and that these “these members generally have an individually-tailored retirement solution, developed in consultation with their financial adviser, that takes into account their broader circumstances and goals”.

“The role of the trustee in supporting members in advised relationships to achieve positive retirement outcomes may be more complex due to the high degree of tailoring that these members receive,” it says.

“The principles call for trustees to ensure that their suite of products and product settings are appropriate for the characteristics of their members and member cohorts, which includes advised members. Whilst recognising the benefits to the member from an advised relationship, the principles suggest trustees have scope to support advised members to achieve positive outcomes by including advised members in member engagement efforts with members approaching retirement, including information on the trustee-designed retirement income solutions and products available through the fund (principle 16),” the consultation paper says.

“In doing so, trustees may provide insights on options in retirement and empower members to have more informed discussion with their financial advisers. This information is particularly valuable for members who may exit an advised relationship over time or do not have an ongoing financial advice relationship to ensure these members can achieve and maintain good retirement outcomes.

“It is not suggested that this information should be provided by the trustee in a repeated or ongoing fashion. In acknowledgment of the existing client-advisor relationship, the principles suggest engagement can state that a member may already have a tailored retirement income solution,” the consultation says.