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 in early access to super in particular, 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:
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
New research from ART has found less than a third of women feel their superannuation is in a good position, reiterating the importance of opening up the advice arena to super funds.
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