Wealth accumulation outside super inevitable
Despite superannuation policy changes relying on the Federal election, both parties' policies are for building only moderate and not necessarily comfortable retirement nest-eggs, Austock Life believes.
The insurance bond specialist said revisiting personal wealth accumulation outside of super would be inevitable and was not reliant on the election outcome.
Austock's managing director, Ross Higgins, said savings outside of super would be encouraged as the third pillar of Australia's retirement incomes system.
"We believe that insurance bonds are the next best, and indeed the only alternative tax-effective investment framework to superannuation," Higgins said.
"Importantly, insurance bonds will be at the forefront of the alternatives (or supplements)."
He said the strategy had uncapped contribution limits, unrestricted access at any age and purpose, and was a versatile tool for estate planning.
"As well, insurance bonds are another approach to ‘life-events' financial planning," Higgins said.
Recommended for you
ASIC has called on superannuation funds to improve their oversight of advice fee deductions following an investigation of 10 trustees that found $990 million was charged in one year.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.