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.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
