Macquarie Wrap launches pension account facility

Macquarie Wrap has launched a Pension Update facility that enables clients to consolidate superannuation money into a single account based pension.

The new facility makes it easier for advisers to commute clients’ existing pensions, contribute additional funds and roll over this balance into a new pension without having to open a new account, the group stated, allowing the original account number, transaction and performance history to be retained.

The head of insurance and platforms for Macquarie Adviser Services, Justin Delaney, said the new tool created additional efficiency for advisers.

“Through providing advisers with this new tool, Macquarie Wrap has created a simple administrative solution that meets their client’s pension needs while remaining consistent with superannuation regulations,” he said.

Macquarie stated that the facility might benefit those that have adopted a transition to retirement strategy of drawing on their super benefits as a pension, while continuing to contribute to another superannuation fund. Macquarie Adviser Services’ technical expert, David Shirlow, said that strategic planning in relation to superannuation income streams was an area where enormous long-term value could be added.

“In recent years we have seen a significant percentage of clients aged from 55 to 65 benefit from transition to retirement pension strategies, but there can be a considerable administrative burden in the implementation,” he said. “By introducing the Pension Update functionality we are seeking to make the administration of some of the more effective, compliant strategies as efficient as possible.”