Chartered Accountants ANZ and CPA Australia believe that the proposed Retirement Income Covenant is unnecessary.

The joint accounting bodies believe the proposed covenant will add to the costs of running superannuation funds but will be of little or no practical benefit to fund members, trustees, regulators or the government.

Contrary to the assertions in Treasury’s Position Paper (which has its genesis in Treasury’s Retirement Income Review), Australian Prudential Regulation Authority (APRA) data shows that retirees deplete their superannuation retirement savings in retirement.

CA ANZ and CPA Australia consider that retirees spending their non-superannuation monies in retirement is not a superannuation fund trustee’s business or concern.  And we have significant concerns about the implication in the Position Paper that superannuation fund trustees be required to effectively offer a form of financial advice to retired members and members “close to retirement”.