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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
23 Feb 2018Global managers added to OneVue platformBy Staff Reporter
23 Feb 2018BT adds new insurers to APLBy Staff Reporter
23 Feb 2018Fintech a risk to specialist advisersBy Killian Plastow
23 Feb 2018No 10-year rule, FASEA confirms to FPABy Aleks Vickovich
22 Feb 2018Registered tax adviser numbers return to 19,000By Staff Reporter
22 Feb 2018AMP adviser banned for charging dishonest feesBy Staff Reporter
- view all