A strong argument exists for the creation of a specialist qualification based on the provision of post-retirement advice in what is becoming an increasingly complex arena, according to Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos.
Vamos declared the need for the qualification during a thought leadership breakfast hosted by Money Management's sister publication Super Review, saying later the move was necessary to deal with Australia's ageing population, their frailty and the emerging issue of greedy and aggressive children.
She said she believed the provision of a framework for such a qualification was a ready-made task for planning organisations such as the Financial Planning Association (FPA).
Vamos argued that a specialist qualification was necessary for appropriately dealing with post-retirement planning because of the complexity of the issues involved and the need to deal not just with a single client but to understand broader family issues.
She said that while in their early retirement years most Australians were well in control of their financial situation, this altered as they became older, more frail and slowed down towards the end of their lives.
"It is about meeting the different needs associated with the changing nature of retirement as people get older," Vamos said. "It is also about dealing with the emerging issue of greedy and aggressive relatives who believe they have an entitlement to money not yet theirs."
She said these issues needed to recognised and dealt with in the context of ensuring clients had sufficient funds to meet their needs.
Vamos said this recognition needed to be combined with an awareness of the products and resources available to such clients, including home equity release products – which had become unfashionable in recent years.
Last week's Super Review breakfast, sponsored by Metlife, canvassed post-retirement as a key issue confronting the Australian financial services industry, along with the need for tax changes to make products such as annuities more attractive.
The panel participants, including leading economist Don Stammer, generally agreed that changes were needed to ensure broader on-going retirement income adequacy, with some suggesting that a cap should be applied regarding access to superannuation lump sums.
The keynote speaker, Shadow Assistant Treasurer, Senator Mathias Cormann, signaled that the Coalition, if elected, would revisit the issue of concessional contribution caps.
