Provision of financial advice to super members critical, says ASFA
One of the key issues discussed at a gathering of superannuation fund trustees at an Association of Superannuation Funds of Australia (ASFA) road show yesterday was the provision of financial advice within super funds and how such services will be structured going forward.
ASFA director of policy Melinda Howes said the provision of financial advice to super fund members was “critical”.
Trustees were asked to consider how their funds would be positioned to provide advice in the future.
Possible issues include whether advice would be limited or comprehensive, whether the advice would be provided in-house or by a third party, and whether the cost would be borne by all members of the fund or whether individuals would pay for specific advice.
ASFA hopes that by 2014, most funds will be providing access to financial advice.
Meanwhile, ASFA also outlined its expectations for the May Federal Budget, which include an increase in the age pension from $30 to $35 per week.
ASFA also expects tighter means testing, with a steeper “taper rate” for income testing and tougher testing of income stream products.
Howe advised that this would result in less age pension for some wealthier retirees.
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