Hot Issues
spacer
The real value of advice
spacer
Taking a deeper dive into indexation of the transfer balance cap
spacer
ASIC sounds warning around high-yield bond scams
spacer
How to pass the diversification test
spacer
Rollout of Director ID Numbers (DIN) is ahead of schedule
spacer
The perks of staying invested
spacer
Retirees proceeding with downsizing plans as confidence rises
spacer
Early access boosted interest in advice
spacer
Vaccination rates as they happen around the world
spacer
Approaching the dawn
spacer
Videos and other resources for our clients
spacer
Retirement the ‘number one trigger’ for financial advice
spacer
‘Unfinished superannuation business’ to watch for in 2021
spacer
Superannuation ideas for 2021
spacer
Retirees need new super investment approach
spacer
Returning expats reminded on tax snares with pensions, investments
spacer
2020 is coming to an end. Phew!!
spacer
ATO flags key deadlines for early release of super
spacer
Retirement costs rising despite COVID impacts
spacer
Government targets fund expenditure, best interests in new super reforms
spacer
Small SMSFs develop rapidly
spacer
Investing basics for first timers
spacer
Behind the dash in new market listings
spacer
Super, death, and taxes
Retirees need new super investment approach

 

The needs of retiree clients may not be properly serviced by traditional portfolio investment approaches, an investment expert has warned.

 

       

Traditional portfolio investment approaches for superannuation may fail to meet the needs of retiree clients, a retirement investment expert has warned.

Pointing out the bulk of superannuation assets in Australia now sit with people aged over fifty, Fidelity International head of client solutions and retirement Richard Dinham said financial advisers had to ensure traditional portfolio construction approaches evolved to meet this demographic’s financial needs.

“In Australia, the retiree client group is growing in size and it is essential that financial advisers have the right tools and resources to meet their particular needs,” Dinham said.

“As such it is important to understand the motivations and drivers behind the behaviour of retiree clients as they move from accumulation to decumulation.”

He highlighted Fidelity International’s recent research paper, “Building Better Retirement Futures”, developed in conjunction with the Financial Planning Association of Australia and CoreData in an effort to help financial advisers develop better investment strategies for their retiree clients.

“The paper outlines some of the key financial issues and considerations specific to retirees and helps advisers design the best strategies for post-retirement decumulation,” he noted.

“Financial advice is invaluable in helping retirees understand how long their money will last and what steps they can take to minimise the risk of outliving their savings.

“Determining the best strategy, or combination of strategies, is a significant part of the value a planner brings to the table.

“Advisers that understand the types of risk specific to retirees, the fears and challenges they face in retirement, how their needs differ from accumulators, and the strengths and weaknesses of different retirement investment strategies, will be best placed to help their clients throughout their retirement.”

In November, Allianz Retire+ chief executive Matt Rady said retirees needed a more innovative approach to investing than that offered by traditional investment portfolios in order to navigate the current low interest rate environment.

 

 

January 11, 2021
Tharshini Ashokan
smsmagazine.com.au

 

Pattinson Financial Services Pty Ltd ABN 17 121 851 376 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd
ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523

Tel: +61 2 8850 6888 | Fax: +61 2 8850 6407 | Toll Free 1300 466 637 | PO Box 6253 Baulkham Hills BC NSW 2153

site By PlannerWeb