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
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
