Many early release recipients shunned comprehensive advice
Most superannuation fund members looking to access the Government’s hardship early release regime wanted no more than general advice and largely shunned comprehensive advice.
That is the bottom line of evidence delivered to a key parliamentary committee by major industry funds Hostplus.
Hostplus group executive, member experience, Paul Watson, told the House of Representatives Standing Committee on Economics that while the fund was cognisant of the regulatory dispensation relating to the early release scheme and had facilitated the provision of comprehensive advice this had not really been accessed by members.
“Very few [members] have asked for personal advice,” he said. “All they have wanted is general advice about how the early release scheme works.”
However, he said that where members had sought more comprehensive advice around the early release scheme, this had been undertaken with a close eye on member best interests.
“In many respects, those inquiries could be taken as a symptomatic of other issues that need to be addressed,” Watson said.
Hostplus had earlier told the committee that its eight-fold increase in comprehensive advice revenue over the past five years had related to a change to its advice operating model from one largely focused on intrafund advice to one focused on personal advice around retirement and pre-retirement.
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