Clicky

Is the Pension Cap choking retirement incomes?

The Government’s Budget changes are continuing to impact retirement income flows, with the latest data released by specialist research house Dexx&r revealing retirement incomes cash flows as declining by 2.3 per cent in the year to December.

The Dexx&r data, looking at total retail and wholesale funds under management and administration (FUM/A), pointed to increased flows across all segments except retirement incomes which the company had been impacted by the Government’s $1.6 million pension cap.

Among the five largest retail and wholesale managers, Macquarie led the way with a 14.9 per cent increase to $113.1 billion, NAB with 12 per cent, the Commonwealth Bank 7.9 per cent, Westpac with 7.1 per cent and AMP with 5.5 per cent.

Related News:

Looking at the retirement incomes data, the Dexx&r analysis said that during the December quarter net cash flows were negative $4.9 billion which represented a significant increase on the negative $3.5 billion recorded in the September 2017 quarter.

“This net cash outflow highlights the impact of the $1.6 million lifetime cap which took effect in July, 2017,” the analysis said.




Related Content

ANZ reviewing wealth sale to IOOF

ANZ has signalled it is reviewing the sale of its wealth businesses to IOOF following the regulatory action initiated against IOOF by the Australian P...Read more

CommBank backs brokers best interests duty

Commonwealth Bank chief executive, Matt Comyn has agreed that mortgage brokers should be subject to the same client best interest duty as financial pl...Read more

Academic attacks use of two-week planners

Financial institutions would be well advised to embed their own staff in the consultancy firms overseeing their remediation process, according to acad...Read more

Author

Comments

Add new comment