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Analysis of approximately 5,000 statements of advice (SoAs) from regtech Fourth Line has found not one adviser mentioned home equity release or reverse mortgage strategies for consideration by clients.
The analysis of SOAs were written between 1 July, 2019, to 15 May, 2021, from 15 advice licensees and 1,980 authorised representatives.
Around 50% of the SOAs were for people agreed 55 or older with an average net wealth was $1.53 million allocated across $668,000 in superannuation, $332,000 in private savings, and $677,000 in property (net of secured loans).
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For those over 55, 14% of SOAs contained advice on private savings; and
For those over 65, only 18% of SOAs included advice on Centrelink Age Pensions (juxtaposed to Retirement Income Review finding that 71% of seniors were receiving the Age Pension).
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at 12:30 pm on July 22, 2021 | 8 comments
The ABC’ business editor Ian Verrender has published an explosive report on how Australia’s wealthy use Australia’s superannuation concession system to shelter themselves from paying taxes:
Back in 1992, when compulsory superannuation was introduced, it was supposed to take the pressure off federal government finances; to augment the age pension.
But superannuation tax breaks introduced over the decades since now threaten to overwhelm the budget within the next 20 years, costing more than a national pension.
Along the way, those tax breaks have helped transform the scheme from a retirement fund into a tax shelter, primarily used as an intergenerational wealth transfer system for the nation’s richest families…
SMSF Association appoints 2 new board members smsfadviser.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from smsfadviser.com Daily Mail and Mail on Sunday newspapers.
Ralston was also a professorial fellow at Monash University and a member of the steering committee for the Mercer CFA Global Pension Index. She was a member of the Reserve Bank payments system board, and a non-executive director of Kaplan Business School, Kaplan Higher Education and SuperEd, and the inaugural chair of the corporate regulator’s digital finance advisory board.
“As our work on the Retirement Income Review highlighted, we have many challenges ahead and I look forward to contributing to the debate, particularly as it affects the SMSF [self-managed superannuation fund] sector,” Ralston said.
Ashenden was currently BT’s head of financial literacy and advocacy and a lecturer on ethics and professionalism in financial advice and the economic and legal context for financial planning, and a member of various working groups at the Financial Services Council.