AustralianSuper and TAL link on ‘income for life’ product
Australia’s largest industry fund, AustralianSuper has joined with major insurer TAL to development an ‘income for life’ retirement product.
AustralianSuper announced the move today describing it as an extension of the group insurance relationship between the two companies.
AustralianSuper chief retirement officer, Shawn Blackmore said the fund had identified a cohort of members who might benefit from a lifetime income option supplementing an account-based pension.
“A lifetime income option not only ensures members, and their partners, are able to have an income as
they live, it may also enable a higher Age Pension entitlement through favourable asset and income test treatment,” he said.
“A great feature of our new proposition will be that members only need to invest a proportion of their savings into this option to give them a sense of security about their financial future.”
Does no-one else share concern about these innovative income streams in that they are designed to increase qualification for the Age Pension by reducing the amount counted for means testing, thus increasing the burdon of the Age Pension on the country (tax payers) when 39% of every tax dollar is already spent on welfare (including 16% or 17% on the Age Pension I see to recall)?
Now that the largest superannuation fund in Australia is involved, this has the potential for serious consequence.
and who will be responsible for the ‘non conflicted’ advice, which would be the ‘sina qua non’ of any financial arrangement which involves the forfeiture of members assets—someone employed by Australian Super no doubt!!!!!!
When money goes out of Australian Super, the pool of assets reduces, thereby putting upward pressure on fees. It is detrimental to the best interests of all members. So how can they justify this? I’m guessing a large trailing commission will be paid to Australian Super. There is no other way to justify the expense. So the question is, ‘will these commissions be disclosed to consumers before they sign up?’
They will be jointly owned Industry Super and Life Co products.
Rest assured Industry Super won’t loose a cent. And then have the member for Life.
Ohh so this is why TAL randomly came out earlier in March with support for Aus Super, & QAR with comments such as “Of particular importance are the proposals to introduce a new class of adviser authorised to provide simple financial advice to superannuation members.
It’s all just a big conflicted back scratching exercise, full of self interest. I hope the TAL management enjoy their bonuses.
You can see this a mile away.
Life CO’s, FSC, ASIC & Pollies have decimated Life Insurances post LIF and Protect your Super = 50% less Australians Life Insured.
So now the Life CO’s are begging Pollies, ASIC, Industry Super for MASS ROLLOUT OF LIFETIME ANNUNITIES proudly brought to you by Life CO’s.
Industry Super love it as once flogged a Lifetime Annunity, members can’t leave Industry Super.
Jimbo Chalmers loves it so he can flog masses of so called Green Bonds.
THE CONFLICTS
THE CORRUPTION
THE POLITICAL GAMES
CANBERRA HAS TRUELY MOVED TO A NEW LEVEL OF GRUBBINESS.
And whittle Advisers will get whacked out of the way by more Levies, more Red Tape and more Adviser bashing.
To paraphrase Paul Keating, who was directing his acidic remarks to the state premiers, “never stand between a life insurance company and the opportunity to grab a dollar ”
These people are not your friends. They have only one aim in life and that is to increase shareholder value, and with it CEO bonuses. Yet risk advisers give these people what is in effect unbridled loyalty.
If we are ever to mature as an advice industry we must understand that product providers are just people who assemble the vehicles we promote. It’s advisers who assess the needs of our clients and make recommendations in the best interests of the client.
And now the people who invent those products that go belly up are to be protected by a CLSR funded by us. We will be providing the warranty on the vehicle and the big end the town will continue to denote bucketloads to the major political parties and demand favours in return