Change rules on Age Pension assistance says Cbus
Superannuation funds should be empowered to assist members in applying for the Age Pension, according to big building and construction industry fund, Cbus.
Cbus has used its pre-budget submission filed with Treasury to argue that research shows that around 70% of Age Pensioners would be interested in receiving support from their fund with the Age Pension.
The industry fund says it already provides members with information and guidance to help increase the awareness of members but wants restrictions lifted preventing Cbus from going further by actually assist members in applying for the Age Pension.
“We encourage the Government to consider removing these restrictions to better support members in applying for the Age Pension,” it said.
“Of Cbus members with balances below $150,000 who are not receiving the age pension, or unsure about how to get onto it, more than one in three believe their financial situation rules them out, and one in five said it was because they don’t know how to access it,” the submission said.
The industry fund has also urged the Government to use the Budget to change the tax setting around total and permanent disability (TPD) insurance for members aged under 60.
It points out that while TPD insurance payments after age 60 are generally tax-free, members under 60 must deal with a complex web of rules and can pay up to 22% tax on claims.
“With the average CbusTPD claim sitting at $103,000 last financial year, the tax hit can be significant,” it said.
Backing in the argument, Cbus chief executive, Krisian Fok said removing tax on all TPD claims – not just those paid after 60 – would make the system easier to understand and help members get to the finish line after a lifetime spent building our nation.
“For many of our members, a serious injury or illness can mean finishing work earlier than planned. Their insurance payout often needs to support them, their families and their recovery for the long term,” he said.
“We’re calling on the government to simplify the tax settings on insurance-in-super payments, so members aren’t left trying to untangle complex rules at an already stressful time.
“When you’re dealing with a life-changing event, worrying about tax shouldn’t be part of the load.”
Members currently face different tax components, uplifts and rates depending on their age and how they take their payment – creating unnecessary complexity during a tough period.
Insurance claims continue to rise, with Cbus paying more than $268 million in TPD claims last financial year.
Cbus & rest of ISF continue to beg for Uneducated, unqualified backer packer sales advisers and all paid for by hidden commissions
These funds cannot manage the most basic of admin tasks as it is, let alone allowing them to deal with Centrelink. Leave it to the professionals and stay in your lane. Don’t get me started on insurance claims and how they drag their feet to keep money from families when they need it most.
This is a space which should be reserved for professionals.
By the way, did we ever find out the name or names of the people who devised the name “Qualified Adviser” ?
Another day and another industry fund wanting carve outs.
Pretty rich coming from a fund such as Cbus given their form.
No they bloody well shouldn’t. This life transition requires great expertise to get the best for clients. They should not just be railroaded by these product providers into their own products. If this isn’t about self interest I don’t know what is? Particularly this organisation has shown already to be wildly corrupt with their links to the unions, the Labour Party, and even stand over bikie organisations and you want access to the countries greatest wealth decisions at the most important transition time in their life. You have got to be joking??? We all know that all you will do is recommend your own product as that is your agenda and the goals of your business.If this is allowed then we may as well let every product give direct retirement advice to their clients and completely shut down The Financial Planning Industry because your trying to say that our advice does not matter or help at all. This would be the most foolish and politically motivated decision in the history of the corrupt Labour Party. If it happens with any super product lawyers would be rubbing their hands together for the losses and missed opportunities this would create for retirees. These poor retirees will miss so many opportunities it’s not funny.
Industry Funds keep forgetting that they are just a product. They don’t have the expertise to provide the proper advice that is needed for a retiree in relation to every other area of advice like estate planning, aged care, Centrelink, non super investments, Intergenerational wealth transfer, look back contributions, downsizing, concessional and non- concessional contributions, income splitting, taxation, and a myriad of other related strategies. It’s like asking your toddler to prepare your tax returns, they simply don’t have it, and overlaying this is the massive conflict of interest. The very reason the royal commission booted the banks out of Financial Advice. Do we really want another royal commission into the Financial Industry???
They are also linked to corrupt unions and closely aligned with a bias Labour Party. They use back packer and offshore call centres to do their work. They are not qualified at all. It’s an outrageous proposition.
With all these issues and conflicts they have Australians retirement savings would be at massive risk. God help Australians retirement plans if the government allows this to occur!!!!