How financial advice moderated early release super drawdowns
Superannuation fund members who used financial advisers were much less likely to take early release superannuation.
What is more, September quarter data compiled by major firms such as IOOF Limited have confirmed this.
A business update filed by IOOF with the Australian Securities Exchange (ASX) has revealed the manner in which early release drawdowns were much lower among people whose superannuation was likely to carry with it access to financial advice.
The IOOF update revealed that applications for early release among members of superannuation products outside of the company’s pensions and investments (P&I) business were well under half those of products within the P&I business.
“IOOF excluding P&I has paid 20,114 requests totally $158 million,” it said. “The P&I business has paid 57,776 requests totally $461 million.”
It noted that there were redemptions from P&I investment management solutions of $423 million to successfully fulfil the platform requests for early release superannuation (ERS) payments.
“The P&I business continues to see greater impact from ERS due to its higher proportion of Employer Super and direct members in its platform business versus IOOF’s predominantly advised client base,” the ASX update said.
Raw data released by the Australian Prudential Regulation Authority (APRA) has served to underscore the fact that superannuation fund products with integral advice offerings have been less affected than those which do not.
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