Advice necessary on sustainable retirement
There is a place for ongoing advice for superannuated retirees to keep them better informed about what they can afford in terms of sustainable draw-downs, according to Ipac Portfolio Management chief investment officer, Jeff Rogers.
Addressing the Conference of Major Superannuation Funds (CMSF) in Brisbane, Rogers acknowledged the reality that many Australian retirees continued to draw down the minimum required amount of pension from their super balances.
He said that in the case of AMP, as many as 50 per cent of clients had been identified as drawing down the minimum.
Rogers said that it was in these circumstances that advice could prove a useful part of the equation in terms of keeping retirees appropriately informed of what they could afford.
“If all you know is that you’ve got some money to last your retirement then you are going to be cautious,” he said. “I believe you have to embed advice into retirement so that retirees can be informed what is a sustainable amount they can draw out.
Rogers said he believed an opportunity existed to improve the knowledge of retirees with respect to what sustainability looks like.
HESTA executive for Finance and Risk, Megan Bolton also suggested that notwithstanding the debate around comprehensive income products in retirement (CIPRS), funds continued to be cautious about investing in such offerings because of the relatively low numbers of members in the retirement phase.
“There are a relatively small number of members affected, and the challenge is to know where to put your resources,” she said. “We can’t afford to be complacent but it is a challenge to know at what stage you evolve to have more sophisticated retirement products.”
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
