Infographic - Information report on the implementation of the retirement income covenant accessible version
This infographic is from the Information report - Implementation of the retirement income covenant: Findings from the joint APRA and ASIC thematic review.
Understanding members’ needs
Key findings:
RSE licensees had drawn on a range of internal and external data sources to understand their members’ retirement needs. However, all RSE licensees were missing data that is critical for developing an effective retirement income strategy. Further, few RSE licensees had critically assessed the extent to which their analytical and modelling capability enabled them to draw meaningful insights from their data.
Priorities for RSE licensees:
- Address fundamental data gaps to support effective strategy formulation and deliver useful assistance to members.
- Enhance modelling and analytics to better understand how members’ financial position and retirement spending needs could change over time.
Designing fit-for-purpose assistance
Key findings:
RSE licensees had started implementing a range of measures to improve the assistance they offer to members, though some RSE licensees were not robustly tracking member usage of assistance offered. Further, a sizeable proportion of RSE licensees lacked concrete plans to address the gaps they had identified in the types of assistance offered.
Priorities for RSE licensees:
- Tailor member communications and other assistance to cater to diverse member preferences and needs.
- To address any assistance gaps, implement regular testing and appropriate metrics to track the effectiveness of assistance offered.
Overseeing strategy implementation
Key findings:
Some RSE licensees had not yet embedded initiatives set out in their strategy into concrete actions in the business plan. Disappointingly, the majority of RSE licensees lacked metrics to assess the retirement outcomes provided to members.
Priorities for RSE licensees:
- Integrate the retirement income strategy with the broader business planning cycle.
- Develop metrics that focus directly on member outcomes (such as changes in drawdown rates and member confidence in meeting their retirement goals) to measure success of their strategy.