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.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
