New calculator from AXA to assist with Budget changes

Rob Thomas

In an effort to assist financial planners in implementing client strategies that can take advantage of the changes to superannuation contained in the 2006 Federal Budget, AXA is developing a new investor calculator.

“The one that we have under development focuses on determining what is the best mix of retirement products between say a TAP [term allocated pension], an allocated pension, and an annuity,” AXA national manager for research and technical advice, Rob Thomas, said.

The initiative to introduce a new calculator as an additional financial planning tool has come about due to a noticeable increase in the use of these types of aids since the most recent Federal Budget was announced.

“We actually measure the hits to these sorts of things, and the usage, and we noticed a spike following the Budget,” Thomas explained.

He said AXA’s existing non-commutable allocated pension calculator had proved to be very popular during this period of time.

In regard to investment products, AXA has not felt the need to amend its suite to accommodate the Budget changes.

“The fundamental product structure that advisers can use to create a meaningful solution for clients through that period don’t really change, what changes is perhaps how you might use them,” AXA general manager, wealth management, Steve Burgess said.

However, he has noticed that the Budget encouraged a greater focus on transition to retirement strategies and suggested there may be opportunities for product innovation in this area.

“It may not necessarily be around the fundamental product structure, but it may be around the investment options that might sit in there, or around combining guarantees with an underlying investment,” Burgess said.