On 30 June 2022, ASIC released Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 and Regulatory Guide 276: Superannuation forecasts: Calculators and retirement estimates. (Superannuation calculators have been removed from the existing generic calculators instrument.) The majority of the changes are focused on retirement estimates, but there are some changes for superannuation calculators. Key points are:

• The Retirement Income Simulator is a superannuation calculator under the new regulations
• Superannuation calculators are member data agnostic
• Personal data can be inputted into a superannuation calculator
• 'Inputted' includes inputted with member consent
• Super calculators must use standard default inflation rates of 4% p.a. for salary growth and 2.5% p.a. for price growth
• Providers of calculators are encouraged to ensure that their default investment returns are consistent with the standard default inflation rates (RG 276.212)
• Future values must be deflated using salary growth for the period up to retirement age and price growth for the period after retirement age
• The disclosure requirements are unchanged from the generic calculators requirements

There is a six month transition period to the new regulations, which must be complied with by 1 January 2023. We are expecting to have the Retirement Income Simulator updated well before that.

Tags: regulation