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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).
MacroBusiness
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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…
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It was created to address the issue that many retirees were only drawing down the minimum amount from their account-based pensions for fear of their money running out
MacroBusiness
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at 1:00 pm on July 1, 2021 | 0 comments
Treasury’s Intergenerational Report showed that superannuation funds under management will soar from around 157% of GDP currently to a projected 244% of GDP by 30 June 2061:
As at 31 March 2021 the superannuation system had assets under management valued around 157 per cent of GDP.80 It is projected this will grow to around 244 per cent of GDP by 30 June 2061. Of this amount, it is estimated that almost three-quarters of funds under management will be held in the accumulation phase.
The IGR also showed that the cost of superannuation concessions will over take the cost of providing the aged pension:
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