Advice will be key to navigating Budget
Both the Financial Planning Association (FPA) and financial planning and retirement firm, StatePlus have urged that financial advice become part of the equation around the Government’s Budget changes, particularly those around insurance inside superannuation.
FPA chief executive, Dante De Gori pointed to the range of Budget initiatives around tax cuts and superannuation, particularly those relating to those under 25 needing to “opt in” to insurance inside superannuation rather than be subject to automatic cover.
“However, this decision must be an informed one,” De Gori said. “Young Australians should be aware of the consequences of deciding to not opt in.”
“For example, insurance is easier to get when you are younger and it is more affordable. So, before you decide to opt out of insurance, do your research and seek advice,” he said.
The FPA chief executive said capping passive fees at three per cent, banning exit fees and reuniting small and inactive superannuation accounts, were further measures welcomed by the FPA.
StatePlus spokesman, David Coyne welcomed many of the elements contained in the Budget claiming it had left Australians with more money in their pockets and improved flexibility for those entering retirement.
However, he suggested the changes made seeking professional advice as key to people determining which would be the best strategy to pursue coming out of the Budget.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
