E6. Is the system Member superannuation and Member surveys, AIST does not accept that member superannuation and providing insurance literacy#* (input) fund disclosures insurance literacy is an appropriate indicator of whether the highquality and case studies system is providing high quality advice. information and to provide intrafund evidence. financial advice to help members make decisions? E7. Is the system Asset allocations by age There is a vibrant debate across the superannuation industry on providing cohort (across different asset allocation as members age. There are a number of products to help market segments and different approaches in the market. The presence of different members products) (output) approaches should be considered as an indication that different manage risks member preferences are being served in the market. Given the over their life presence of different approaches in the market, an indicator cycles and around specific asset allocations by age would be ambiguous in optimally terms of its meaning. consume their In talking of members managing risks over their life cycles, is the retirement PC putting itself forward as second guessing trustees as knowing incomes? what asset allocation is best for each market segment, age group and cohort? It is strongly arguable that existing commercial lifecycle products commence de-risking too early, which would clearly be an inefficient outcome. While we would expect to see more conservative asset allocations over the age
E6. Is the system providing highquality information and intrafund financial advice to help members make decisions? Member superannuation and insurance literacy#* (input) Member surveys, fund disclosures and case studies to provide evidence. AIST does not accept that member superannuation and insurance literacy is an appropriate indicator of whether the system is providing high quality advice. E7. Is the system providing products to help members manage risks over their life cycles and optimally consume their retirement incomes? Asset allocations by age cohort (across different market segments and products) (output) There is a vibrant debate across the superannuation industry on asset allocation as members age. There are a number of different approaches in the market. The presence of different approaches should be considered as an indication that different member preferences are being served in the market. Given the presence of different approaches in the market, an indicator around specific asset allocations by age would be ambiguous in terms of its meaning. In talking of members managing risks over their life cycles, is the PC putting itself forward as second guessing trustees as knowing what asset allocation is best for each market segment, age group and cohort? It is strongly arguable that existing commercial lifecycle products commence de-risking too early, which would clearly be an inefficient outcome. While we would expect to see more conservative asset allocations over the age
sub039-superannuation-assessment.docx