At a time when the number of retired Australians is about to increase, the exodus of financial advisers from the market will impose immense structural limitations on advice resources.
That is one of the key points made in a CPA Australia submission to the Retirement Income Review panel which stated there is a significant risk that Australians who need professional advice most, may miss out.
The submission has pointed to the complexity of the regulatory environment confronting retirees.
“The fact that one needs to transfer their superannuation to a new product in order to commence an income stream is fraught with uncertainty and paperwork. The most basic retirement income product, the account-based pension, still requires a formal rollover and application process before it can commence, where retirees would most likely prefer a simple switch to turn it on from their existing account,” it said.
“The Age Pension means testing process is no simpler. Deeming, lifetime incomes and exemptions conspire to make it almost impossible for retirees to know how their affairs should be set up when they decide that they wish to retire.”
“We are not aware of any evidence that matters are improving,” the CPA Australia submission said.
“At a time when the number of retired Australians is about to increase, this will impose immense structural limitations on advice resources, meaning that Australians who need professional financial advice most may miss out.”