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.
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.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
