Time to focus on draw down phase: Lonsec
With Baby Boomers closing in on retirement, the financial advice industry needs to shift its focus from accumulation to draw down, according to Lonsec Research.
Lonsec's general manager, investment consulting, Lukasz de Pourbaix, said the forecast surge in the numbers of people accessing their superannuation funds in the coming decades posed a significant challenge for advisers.
"While much of the industry focus to date has been on the accumulation phase, there are many issues in the draw down phase that are important to consider," he said.
de Pourbaix said the industry needed to collaborate and prepare for the shift in focus of clients' needs in the years ahead.
He said the Lonsec Retire Industry Panel, which includes, NAB Asset Management; Colonial First State; Macquarie Investment Management; BT Investment Management; Plato Investment Management; and new member, AMP Capital, was one example of the industry working together to help advisers navigate the challenges associated with the changing demographics of the market.
"We don't have all the answers and the industry panel is our way of increasing knowledge around the issues of investing in the retirement phase," de Pourbaix said.
"The industry panel is a unique platform that looks to engage the broader market in tackling these issues as well as help build and broaden understanding among advisers and their clients."
Actuarial consultancy firm Milliman's Australian financial risk management practice leader, Wade Matterson, who has worked alongside Lonsec in developing the industrial panel, welcomed the addition of AMP Capital.
"It is recognition of the importance of this issue for advisers, and the broader financial services sector, that we have some of Australia's largest and most innovative financial institutions contributing to the portal," he said.
"It is important we have an open dialogue about the many issues facing our aging population and support financial advisers who are the front line of this discussion."
AUTHOR
Nicholas O'Donoghue
Recommended for you
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.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
