Advisers need retirement specialist accreditation
Financial advisers need specialist accreditation in the post-retirement income space to tackle the complex challenges awaiting the burgeoning baby boomer cohort heading towards retirement.
That is the view of the Association of Superannuation Funds of Australia's (ASFA) chief executive, Pauline Vamos, who said that while advisers have not had a need to provide extensive advice in this space before, this is no longer the case.
"It's a complex area, and we think there should be a specialist accreditation because people do need individual, full personal financial advice," Vamos said.
Vamos believes advisers' understanding of annuity products is still low because the demand for it has not existed, and they have not had to sell them.
Vamos also argued longevity risk product definitions should be expanded so that it is still seen as a product that supplements age pension rather than replace it.
"But it's not just about annuity products. Retirement advice is about understanding funding of aged care, access to social security, and many other significant issues around retiring, particularly for couples," she said.
Investment Trends research showed fewer than one in five Australians feel they have enough money to cover their aged care costs, which presents an opportunity for advisers to facilitate discussions in this area.
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