ASIC finds super funds falling short on retirement comms

The Australian Securities and Investments Commission (ASIC) has fired a shot across the bows of major superannuation funds with a new report finding they are falling well short in their communications with members.

The regulator has released Report 818 which is highly critical of the number of superannuation trustees offering a one-size fits all approach to retirement communications aimed primarily at pre-retirees.

ASIC’s review  found little evidence of trustees tailoring their messaging and delivery methods to meet the diverse needs and preferences of their member base, including those already in the retirement phase.

ASIC Commissioner, Simone Constant said the problem had emerged despite the retirement income covenant (RIC) obligation starting three years’ ago.

“The clear message we are sending to super trustees is a one size fits all communications approach won’t work for all member groups as it may not provide the quality of information customers need to make confident and informed decisions about retirement,” she said.

“Trustees have developed significantly fewer communications targeted at retired members. Most of these targeted communications were more relevant to members in the lead up to, or in early stages of retirement, which given the size of the retirement wave already breaking, is a real missed opportunity.

“It was disappointing to see the retirement communications practices of participating trustees largely overlooked the specific needs of First Nations members, vulnerable members and culturally and linguistically diverse members. None of the trustees we reviewed developed specific retirement communications for vulnerable members.’