AXA tool gets personal with super changes
Robert Thomas
In light of the Federal Government’s impending changes to the assets test for pension eligibility, AXA Australia has launched a new tool to aid advisers in further maximising their clients’ retirement income.
The AXA Retirement Income Optimiser has been designed to demonstrate the effect of the new assets test taper rates as well as the potential benefits of purchasing a complying income stream.
From September 20, 2007, the Government intends to make two changes to the way pension payments are calculated. The first change will see the 50 per cent assets test exemption no longer available for complying income streams purchased on or after September 20.
Secondly, the pension assets test taper rate will be halved from $3 to $1.50 per fortnight for every $1,000 of assets above the lower assets test threshold.
According to AXA national manager of technical and research Robert Thomas, the changes being made will mean people currently receiving a reduced government pension may be entitled to more.
It also means anyone who is currently ineligible for a pension may qualify to receive a payment after September 20.
“[The new tool] highlights the possible opportunities available before September 20, 2007, but also gives advisers the opportunity to make comparisons between different complying income stream strategies,” Thomas said.
“It gives an individual and dynamic representation of the opportunities presented by the Federal Government’s changes and a personalised report that shows whether an individual can benefit from the changes.”
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.
