FPA gets behind income stream law
TheFinancial Planning Association(FPA) has lent its support to improvements made to complying income streams legislation.
FPA chief Ken Breakspear says proposed changes to the Social Security Act which allow people with complying income streams to access their capital in emergency situations is a step in the right direction to improve the retirement income stream regime.
But he says that more changes are required to assist retirees attain acceptable conditions for retirement. The Federal Government, says Breakspear, should be exploring the introduction of a market-linked compliant income stream product.
The FPA says recent research shows that a market-linked account based style of complying pension for both social security and reasonable benefit limits (RBL) could have the potential to increase returns of the capital base of the income stream over in the long term.
This would be consistent with the Government’s policy objective of self-sufficient retirement incomes and would have a positive impact on the Government’s fiscal position, Breakspear argues.
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