Advisers reveal biggest client concerns around super

Data from AMP’s technical superannuation adviser support team has found that accessing super and understanding the conditions for release was the key issue financial advisers helped their clients with last month.

Other key issues raised by advisers in February included:

• How much can be contributed to super through non-concessional contributions;
• How transition to retirement pensions work;
• Understanding how the superannuation death benefit works; and
• Understanding how total and permanent disability insurance works within superannuation.

AMP technical strategy manager John Perri said this month saw a focus on understanding the conditions that need to be met before people can access their super.

“In particular, many Australians don’t realise they can access super early if they change jobs between the ages of 60 and 65, even if they continue working in a new job,” Mr Perri said.

“However, super benefits can be accessed as a tax-free lump sum during this period, or used to commence a retirement income stream, which receives a tax exemption on earnings, and has no maximum pension restriction.

“This may be more flexible and tax efficient than using a transition to retirement pension, which does not receive a tax exemption on earnings, and has a maximum income payment of 10 per cent of the account balance.”

Mr Perri added the key insight is if someone is changing jobs on or after age 60, it may be an opportunity to consider accessing your super.

“However, it’s important that people fully understand the policy and carefully consider the potential impacts on their super before they decide to access it,” he said.

The data was based on more than 2,000 calls made by advisers in February.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].