Early release of super a key concern for advisers
Accessing superannuation and understanding the conditions for release was forefront of many advisers’ mind last month, as it proved the number one superannuation issue they faced.
AMP’s technical superannuation advice team reported a spike in interest particularly in early access to super, receiving over 2,000 calls from advisers on the topic over February.
“This month we saw a focus on understanding the conditions that need to be met before people can access their super,” AMP technical strategy manager, John Perri, said. “Many Australians don’t realise they can access super early if they change jobs between the ages of 60 and 65, even if they continue working in a new job.”
From an adviser perspective, he said that it could suit some people to access super benefits as a tax-free lump sum during that period or use it to commence a retirement income stream, both of which could prove more flexible and tax-efficient that using a Transition to Retirement pension.
Other hot topics raised by financial advisers on superannuation in February included:
- How much can be contributed to super through non-concessional contributions;
- How transition to retirement pensions work;
- How superannuation death benefits work; and
- How total and permanent disability insurance works within superannuation.
AUTHOR
Hannah Wootton
Recommended for you
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
