Retirement Income Simulator

Happy New Year!

For our Australian clients:
ASIC is reviewing the regulations applying to online calculators, which are due to expire 1 April 2016, but our clients needn’t be concerned. Let me explain.

The Australian Securities and Investments Commission (ASIC) is the regulator responsible to protect consumers when they make decisions and transactions in relation to financial products. One of the areas ASIC operates in is the area of financial product advice. Providers of financial product advice need to be licensed, and comply with various provisions in the Corporations Act, and breaching these provisions carries serious penalties. On the face of it, an online calculator like the Retirement Income Simulator could be considered to be providing financial product advice because it can be used to make decisions about superannuation – how much to contribute, investment strategy, amount to draw down etc, and also because it includes default assumptions about investment returns and inflation.

ASIC sees the benefits online calculators offer to consumers, so has set some simplified rules that allow funds to provide calculators without the requirement to be licensed and comply with the provisions in the Corporations Act. These rules relate to:

  • Disclosure of purpose, limitations and assumptions
  • Reasonableness of assumptions
  • Flexibility to change the assumptions
  • Ability to take a printout of results
  • Not promoting a specific financial product

The rules have been in place for 10 years and are about to expire, so ASIC has issued a consultation paper and proposed some minor changes.

What will this mean for your Retirement Income Simulator? We will be making a submission as part of the consultation process, and will be informed of the new rules and any transition period. (If you are a client offering a calculator, or even a calculator user, you could consider making a submission as well.) We will ensure that our calculators remain compliant with regulations at all times and will consult our clients on the implementation of any required changes. The licence fee for the RIS covers changes required for external events such as regulatory change. Please contact us if you have any queries.

Tags: regulations ASIC

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Posts by Quarter

2023 q3

Calculator update 1 July 2023

2022 q4

Superannuation calculator regulatory update goes live

2022 q3

Superannuation calculator regulations updated
Calculator update 1 July 2022

2021 q3

Calculator update 1 July 2021

2020 q4

Tax changes arising from Federal Budget 2020

2020 q3

Calculator update 1 July 2020

2020 q2

Making the simulator more accessible
Two new RIS features

2019 q3

Deeming rate changes July 2019
Calculator update July 2019

2019 q2

Inflation update
Home loan feature

2017 q3

New enhancement for the self-employed
Calculator update July 2017

2017 q1

Calculator Updates for March 2017

2016 q4

Calculator Updates for December 2016
Inflation update
Calculator updates for October 2016

2016 q3

Modelling inflation in the simulator
Calculator updates for July 2016

2016 q2

Federal Budget 2016
Calculator updates for April 2016

2016 q1

Career changes in the Retirement Income Simulator
Changes to online calculator regulations

2015 q4

Calculator updates for December 2015
Alternative input methods for the Retirement Income Simulator
Retirement Income Simulator improvements for the retirement phase

2015 q3

Age Pension and ASFA Retirement Standard changes
How much super do you need?
Calculator Updates for July 2015

2015 q2

Congratulations to Media Super
Infographics for simplified retirement planning
Retirement Income Simulator gets a responsive redesign