Govt ‘commits’ to expanding super fund advice
The Federal Government has reinforced that it wants superannuation funds to be fundamental to what it sees as a gap in financial advice delivery.
The point was rammed home by the Assistant Treasurer and Minister for Financial Services, Stephen Jones who told a Melbourne conference that “the Government has committed to expanding the role that superannuation funds will play in providing personal financial advice”.
In doing so, he said the current situation represented an opportunity for superannuation funds to differentiate themselves through their level of service.
He told the Australian Financial Review forum that he believed superannuation funds were going to have to do more to meet the needs of their members and that “one area of important need is financial advice”.
“The Retirement Income Review found that only a quarter of those approaching retirement seek financial advice. That means members are making big decisions about their future without access to helpful information. And it can lead to many retirees having a lower standard of living than they otherwise could have.”
Jones said the lack of advice and information around retirement incomes “is clearly the biggest gap in the advice market”.
“And so the Government has committed to expanding the role that superannuation funds will play in providing personal financial advice. This is an opportunity for funds to differentiate themselves through their level of service.”
“I expect members will respond positively to funds that understand their needs and provide personalised solutions to make their savings go as far as they can. Members will also get more helpful assistance in navigating other decisions, such as their tax obligations and pension entitlements.”
“This provides an opportunity for funds to be more innovative with how they engage members and what they offer,” Jones said.
Govts spend 20+ years forever increasing red tape, costly, useless BS Advice compliance & regulation.
Govt spend the last 5 years decimating Adviser no.s reducing from 29,000 to under 16,000.
And now Govt says it’s too costly to get Advice for most people.
But why ?
And there isn’t enough Advisers.
But why ?
So Govt says let’s get Union owned Industry Super back packer call centres to do the job.
This behaviour is expected from Union run / Industry Super run ALP.
The sad thing is the LNP were in power for 70% of time over the last 23 years of Regulatory Madness.
So LNP should be held accountable for 70% of the Adviser problems. And ALP for the other 30%.
Which Advisers are still Life Long Blue Blood Liberals ? Not me that’s for sure !!!!!!
What next…McDonalds staff to design complete dietary plans for their customers?
The agenda has always been about getting more FUM for Union Backed Super funds. It’s never been about what’s in the best interest of Australians or about how more Australians obtain Advice. The overriding goal is a handful of Union Backed Super funds existing and controlling most of the funds in this country.
This is just priceless! With governments of all persuasions having spent a decade or more gutting the financial advice industry, the solution is to have less qualified and less experienced employees of “low cost” super funds provide advice to their members. Would be funny if it weren’t so stupid.
The real agenda behind the “Retirement Income Review” and super funds giving advice, is to retain money in union super funds after retirement. Most account balances in union super funds are at a level where there is no significant benefit retaining them in super once the member retires and qualifies for SAPTO.