ASIC proposes reforms to simplify superannuation funds

THE Australian Securities and Investment Commission has made a number of suggestions to make it easier for superannuation funds to provide retirements savings estimates for members.

An ASIC consultation paper released on Wednesday proposes reforms which allow super funds to include the age pension as part of a retirement estimate and clarify that super funds may rely on the prescribed assumptions about contributions and earnings in calculating a member's retirement estimate. 

ASIC Commissioner John Price said retirement estimates were important in helping people "engage with their superannuation and think about their retirement planning".

"With the continued growth of the super sector, it is vital that fund members remain confident and informed about the prospects of their fund. The updated guidance will allow trustees to provide more accurate estimates in this regard," Mr Price said.

The consultation is open for comments until April 19.