Perpetual has reassured pensioners that it will continue making pension payments to self-funded retirees in its WealthFocus Pension plan despite the redemptions freeze on the mortgage sector.
Perpetual changed the process of redemptions in its mortgage funds to a quarterly basis after the Government guarantee of bank deposits led to a rush of redemptions from mortgage funds in the non-banking sector.
Richard Brandweiner, Perpetual group executive, income and multi sector, said despite the changes, Perpetual’s pension payments would remain unchanged. “Many self-funded retirees in our WealthFocus Pension plan rely on redeeming some of their capital on a regular basis in order to supplement their income. Perpetual will step in to make sure these payments continue to be made.”
Perpetual has submitted an application for early withdrawals from mortgage funds following the announcement by the Australian Securities and Investments Commission allowing the early redemption of funds from the mortgage sector if investors can prove financial hardship.
