Pre-retirees should be investing in ‘safe-haven’ assets but are often led astray by advisers backing high-commission products, a university academic has claimed.
A report written by Macquarie University professor Geoffrey Kingston – and disseminated by think tank the Centre for International Finance and Regulation – argues that baby boomers face a shortfall in professional advice.
“The allocation split between safe-haven and growth assets raises a potential conflict of interest between a client and their adviser,” Professor Kingston wrote.
“Approaching retirement, it stands to reason that an investor should orientate their portfolio towards safe-haven assets.”
The report called for the “next review of financial advice” to examine ways of requiring advisers to “reveal the fragility of financial plans” provided to clients approaching retirement.
“Commissions from product providers should be banned,” he added.
The report predicts that the age 65-plus population will grow to around 23 per cent by 2050 – in addition to a substantial increase in self-funded retirements – reinforcing the need for personalised financial advice.
The number of advisers has hit a new low, shrinking below 19,000 as of 23 September. ...
The advice sector has reason to be optimistic about the future of the industry, according to the Association of Financial Advisers (AFA) national pres...
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has applauded the decision by the Commonwealth Bank (CBA) to lower costs incurr...