Australia’s superannuation funds have been urged to do more to help their members in retirement after only six funds passed a new test.
Australian Retirement Trust, Aware Super, Unisuper, Hostplus, TelstraSuper and Brighter Super Fund met at least 12 out of the 18 criteria to earn the Epic Retirement Tick, which indicates how well prepared they are for their members to enter retirement.
The criteria range from strong retirement income products to fair fees, good support when transitioning out of work, and tailored investment options.
The ‘retirement ready benchmark’ was designed by retirement education and publishing group, the Epic Retirement Institute, and research, data and analytics provider Chant West.
“With around 65 funds serving Australians today - including 15 major players - we need to see more,” Epic Retirement founder Bec Wilson said in a statement.
“Australians headed for retirement deserve better. And the way we get there is with action from you.”
Wilson said although some funds were focused on delivering for members as they approached and entered retirement, others had not made it a big priority.
She said fund members should use the services of funds with a tick, contact funds that failed the test and ask about their retirement initiatives, what they plan to do for their retirees and advise they are being watched closely, and decide if they are the right fit for their next stage of life.
Chant West General Manager Ian Fryer said the initiative established a clear and easy-to-understand benchmark to help super fund members understand what ‘good’ looks like as they move towards retirement.
“Ultimately, we want as many Australians as possible to have access to the advice, products, tools and service that help them maximise their financial security in retirement,” Fryer said in a media release.
“We’re working closely with super funds to drive engagement and action to build strong retirement offerings for their members. This accreditation aims to create a practical framework for fund members to understand how their super fund can support them as they move towards retirement.”
The new benchmark was welcomed by Australia's largest super fund, AustralianSuper, which did not get a tick.
A spokesperson said: "This is a great initiative from Chant West that will help all funds learn so they can improve the way they service members.
“AustralianSuper will be introducing many new initiatives that will provide a big boost to members approaching, or in, retirement. We are committed to supporting members to live well in retirement.”
After being approached for comment by Azzet many others funds either did not respond or declined to comment but one large fund asked for more details about the “processes and costs” required to get a tick.
