Superannuation and retirement income calculators will adjust the inflation rates they use after an ASIC instrument amendment.
ASIC updated the instrument governing superannuation and retirement income calculators to require providers to adjust for inflation in their estimates by using the same inflation rate used by ASIC's own MoneySmart calculators.
The requirement will see providers use either the default interest rate - as set by MoneySmart - or an alternative interest rate from December 5, as long as they meet the regulator's disclosure requirements.
ASIC said the rate of inflation used by MoneySmart includes a component reflecting any change to the cost of meeting community living standards, which can assist users in determining the adequacy of their future retirement savings.
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As a result, any provider not considering the costs of meeting increased community living standards in their inflation rate will be required to explain to users the implications of not taking into account those costs.
Until the changes take effect providers are required to disclose whether or not their estimates take cost of living changes into account.