EOFY sees clients considering funeral bonds
The end of financial year period as well as an increasing ageing population is seeing more people review their financial plans and consider funeral bonds as an option, according to the Australian Friendly Society.
The funeral bond issuer said demand usually rose by about 10 to 20 per cent in the month of June, compared to May, and this was a consistent trend with other corresponding end of financial year periods.
Chief executive, Mandy Cooper, said those clients who were just transitioning into a full or part pension, those who might be moving into an aged care facility, or those who were trying to reduce their asset base might be considering funeral bonds.
"Investments of up to $12,250 (indexed effective 1 July each year) are currently exempt from Centrelink and the Department of Veterans' Affairs Income and Assets Tests, which means there can be important taxation and pension considerations, depending on the circumstances of a particular client," Cooper said.
Cooper also said she was seeing more interest in light of upcoming changes to the assets test free area, which will increase to $375,000 for a homeowner couple, while pensioners will be charged a new taper rate of $3 for every $1,000 above the new assets test free areas.
AUTHOR
Malavika Santhebennur
Recommended for you
High-net-worth advisers seeking to grow their businesses are likely to find alternatives to be a key part of the puzzle amid investor demand, according to Praemium’s head of private wealth.
The financial advice profession has lifted back above the 15,500 mark this week thanks to a double-digit net rise in adviser numbers, according to Wealth Data.
A closer watch on licensees that fall short on cyber security protections is among a dozen new enforcement priorities announced by the corporate regulator for 2025.
Research house Morningstar has welcomed a new director for manager research to cover Australian and New Zealand fund managers.
