AMP monthly data reveals superannuation hot topics

From

John Perri

Accessing super and understanding the conditions for release was the key issue financial advisers helped their clients with last month, according to AMP’s technical superannuation adviser support team.

Data from more than 2000 calls made by advisers in February showed a spike in queries about early access to super.

AMP’s team of technical superannuation experts help advisers understand the latest complex super regulation and law changes, so they in turn, can best help their clients.

Other key issues being raised by financial advisors 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
  • Understanding how total and permanent disability insurance works within superannuation.

AMP Technical Strategy Manager John Perri said the adviser support team has a rare insight into the issues most top of mind for advisers, based on the queries they receive from their clients.

“This month we 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. 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 both 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.

“The key insight is if someone 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,” Mr Perri said.

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