Is the Pension Cap choking retirement incomes?
The Government’s Budget changes are continuing to impact retirement income flows, with the latest data released by specialist research house Dexx&r revealing retirement incomes cash flows as declining by 2.3 per cent in the year to December.
The Dexx&r data, looking at total retail and wholesale funds under management and administration (FUM/A), pointed to increased flows across all segments except retirement incomes which the company had been impacted by the Government’s $1.6 million pension cap.
Among the five largest retail and wholesale managers, Macquarie led the way with a 14.9 per cent increase to $113.1 billion, NAB with 12 per cent, the Commonwealth Bank 7.9 per cent, Westpac with 7.1 per cent and AMP with 5.5 per cent.
Looking at the retirement incomes data, the Dexx&r analysis said that during the December quarter net cash flows were negative $4.9 billion which represented a significant increase on the negative $3.5 billion recorded in the September 2017 quarter.
“This net cash outflow highlights the impact of the $1.6 million lifetime cap which took effect in July, 2017,” the analysis said.
Recommended for you
ASIC has cancelled the AFSL of a Perth financial services firm following payments to its clients by the Compensation Scheme of Last Resort after a failed managed investment scheme.
Independent investment manager Copia Investment Partners has appointed Adam Tweedale to its distribution team, working with advisers across Victoria, Western Australia, and Tasmania.
Bravura chief executive Andrew Russell has announced he will be stepping down from the company, just under two years after his appointment.
Financial advice businesses with a younger, wealthier client base are enjoying higher valuations and increased attention from potential buyers than those with older clients.
