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

Five core beliefs key to giving clients value

Adelaide financial adviser Glenn Sterrey, of Bentley Wealth Partners (BWP), says “I am an overnight success… it’s just taken me 35 years to get ...Read more

How are you preparing for the future of advice?

 Financial advice is changing rapidly and there will be more to come in the next three to five years. With advisers facing major changes in regul...Read more

From financial adviser to financial coach – the journey and the philosophy

Heidi Schwegler, AHS Financial principal, always wanted to become a financial adviser with an underlying desire to help people make sense of their fin...Read more

Author

Comments

Add new comment