Perri joins the Association after a distinguished 30-year career with AMP where he most recently served as Head of Technical Strategy, leading AMP’s TapIn technical team. A respected figure in the financial planning and SMSF communities, he brings deep expertise and a proven track record in technical leadership and adviser education.

Perri says: “I am delighted to join the Association at such a pivotal time for the sector. With significant reforms reshaping advice and retirement policy, I look forward to contributing to its mission of supporting members and advancing the SMSF sector through high-quality technical resources and guidance.”

SMSF Association CEO Peter Burgess welcomed John’s appointment, saying: “Our members and the SMSF sector will benefit immensely from John’s extensive experience, technical knowledge, and background in adviser education.”

Perri’s immediate focus will be supporting the delivery of the Association’s SMSF Specialised Advisor accreditation program and contributing to the development of high-quality technical content designed to help members meet their ongoing CPD obligations.

With enrolment numbers in our SMSF accreditation programs and the demand for SMSF technical support services continuing to grow, it’s imperative we continue to invest in our technical support capability to deliver timely, relevant and practical resources for our members.

“John is highly regarded across the financial planning profession, with a long history of presenting at industry conferences, including our National Conference.

“John’s appointment underscores our commitment to delivering high quality, best-in-class technical support and strengthening our voice in key policy debates.”

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John Perri

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Matt Lawler

Financial advisers are focused on helping their clients navigate superannuation contributions, conditions of release or withdrawals, transfer balance caps and home ownership issues, according to the latest data from AMP Advice.

TapIn, AMP Advice’s technical service for its advice network, received more than 10,000 calls and email queries from financial advisers over the last year.

Almost one in four (24%) questions that AMP received from advisers related to superannuation contributions and dealing with a death benefit, with one in fifteen (6.3%) queries relating to concessional contributions.

The findings are supported by recent AMP research^[1] which found most older Australians heading into retirement lack knowledge about fundamental aspects of managing their retirement finances, underlining the importance of advice in helping them navigate this important transition.

3 in 5 (59%) Australians aged 50 and over said they wished they’d started planning for retirement earlier in life and over half (52%) did not know what a retirement income product is.

Almost one in three (31.3%) were extremely concerned about whether they would be able to afford aged care.

In addition to concessional and non-concessional superannuation contributions, the most common topics raised by AMP’s adviser network this year were condition of release or withdrawals (340 queries), transfer balance cap (309 queries), dealing with a death benefit (292 queries) and home ownership issues (228 queries).

AMP group executive, advice Matt Lawler said: “With their deep knowledge and expertise, our TapIn team continues to be held in the highest regard by our advisers and provides a compelling advantage for AMP in making advice more accessible for more Australians.”

“Core to our offer, TapIn’s regular data and feedback directly complements our value-added services and shines an important light on the key questions and challenges faced by advisers and their clients today.

“Advice is a firm part of our DNA and we’re always happy to support our network, encouraging more advisers to come forward and make the most of the expertise and services we have on offer.”

AMP head of technical strategy and TapIn, John Perri said: “The only constant in superannuation is change and we have witnessed a growing number of calls from advisers around what the latest in superannuation reforms and regulations mean for their clients.”

“AMP Advice provides a helping hand to our advice network through valuable services like TapIn, with a plethora of accessible resources such as our publications, fact sheets, educational webinars and regular events like Network Connect to help showcase industry best practice.”

——–

[1] https://corporate.amp.com.au/newsroom/2023/september/australians-financially-illiterate-when-it-comes-to-retirement-

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(L to R): Angus Uwland, Chaise Murray and James Elsworthy

Angus Uwland, Chaise Murray and James Elsworthy have won AMP’s University Challenge for 2023.

The team, from Deakin University in Melbourne, beat over 70 students to claim the top prize and plaudits from the judges.

Now in its 13^th year, AMP’s University Challenge is an annual financial planning competition for university students across the country.

It aims to identify promising new talent and promote high standards of education and professionalism among the next generation of advisers.

More than 6000 students from 21 universities across Australia have participated in the Challenge since it first began in 2011, with many going on to join the financial advice profession.

The AMP University Challenge is integrated into the curriculum and assessment for students studying financial planning majors at participating tertiary institutions like Central Queensland University, Deakin University, Griffith University, TAFE NSW and University of Wollongong.

Finalists were tested on their technical knowledge, undertook a mock advice interview with two clients and delivered an eight minute presentation on how to significantly grow the number of financial advisers in Australia by 2026.

The finals were also a chance for the students to speak with senior advice professionals and financial planning academics and get advice on their studies and career opportunities.

Up to $10,000 prize money was on offer with the winning team taking home $5,000 plus a complimentary ticket to AMP’s national conference, Advice Live hosted in Adelaide in February 2024.

AMP’s head of technical and professional services, John Perri, one of the judges in this year’s event, welcomed the opportunity to hear from Australia’s best and brightest minds and said the University Challenge provided an important pathway for new entrants into the advice profession.

The final placings for this year’s event, judged by a panel of financial services experts, were:

1st place: Angus Uwland, Chaise Murray, James Elsworthy from Deakin University

2nd place: Benjamin Robertson from RMIT

3rd place: Hugh Menzies, Dean Boatman and Brad Edwards from Deakin University

Brimming with confidence

AMP was also pleased to be involved in Striver’s inaugural Brimstone event, held on Tuesday 19 September last month.

Designed to explore career opportunities within the financial advice profession, Brimstone helped bring together current university students and graduates from across Australia as well as those seeking a career change into financial planning.

AMP Group Executive, Advice, Matt Lawler said: “I’d like to congratulate all the finalists at AMP’s University Challenge for 2023, together with our winning team of Angus Uwland, Chaise Murray and James Elsworthy from Deakin University.

At AMP, we’re passionate about helping nurture and empower the next generation of advisers as a core pillar in helping continue to instil confidence in the professionalism of financial advice.

“We hope events like our University Challenge together with our involvement in Brimstone can serve as a launching pad for more students and their promising careers in advice.

“The team at AMP Advice continues to work hard to strengthen our relationships with our tertiary partners, helping provide scholarships to the next generation of students and aspiring financial planning professionals.

“We welcome the opportunity to play our part in helping guide the next cohort of talented advisers and help create new pathways for careers in this outstanding profession.”

FAAA General Manager Policy, Advocacy and Standards, Phil Anderson said: “We’re pleased to be involved in the judging of AMP’s University Challenge for 2023 which provides an excellent platform for highlighting and celebrating the outstanding students coming through the education system, who are the future of our profession.

“Awards like this shine a spotlight on the fantastic profession that financial advice is and we hope initiatives like this will help attract more young Australians into the profession over the coming years.”

AMP Head of Technical and Professional Services, John Perri said: “We’re really excited to be hosting the next generation of talent, providing a fantastic opportunity for students to establish meaningful connections and network with AMP business leaders and experienced financial advisers.

“I’ve been astounded by the sheer quality, passion and detail in this year’s submissions and the presentations by the finalists were all very solid.

“If this is what the future of financial planning looks like, then we have much to look forward to in the years to come.”

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John Perri

Australians are set to benefit from a package of changes to superannuation from the start of the new financial year. The changes include an increase to the compulsory Superannuation Guarantee (SG), which will add thousands of dollars to retirement savings, particularly for younger Australians.

Low-income earners will benefit as they now will receive SG contributions from the first dollar of salary/wage income earned, with the current $450 per month exemption from compulsory SG contributions being removed from 1 July.

The removal of the work test from ages 67-75 and the reduction in the downsizer contribution age to 60 provides added flexibility for older Australians to boost their super balances prior to retirement.  Further changes include an increase to the eligible funds for the first home super saver (FHSS) scheme and an extension to the 50 per cent reduction to minimum superannuation drawdown requirements for retirees.

Superannuation Guarantee increase

The mandated 50 basis point increase to the Compulsory SG from 10 per cent to 10.5 per cent, will increase retirement savings for a 25 year-old Australian with a salary of $80,000 per year and a current super balance of $50,000 by more than an estimated $30,000 at age 65. For a 55 year-old Australian with a super balance of $300,000 and salary of $150,000, the SG increase will add more than an estimated $8,000 to their balance by age 65*.

John Perri, AMP’s Technical Director for Superannuation, commented: “One of the fantastic things about our superannuation system is that Australians automatically benefit from the magic of compounding investment returns. What may seem like a relatively small addition to contributions in the short-term will magnify into meaningful savings at retirement. This is therefore a beneficial change for all working Australians, but particularly for younger Australians who will see a greater compounding effect over the long-term.”

Removal of Work Test from 67 to 75

Australians aged 67 to 74 (inclusive) will be able to make or receive non-concessional superannuation contributions or salary sacrificed contributions without meeting the work test, subject to existing contribution caps. These individuals will also be able to access the non-concessional bring forward arrangement, subject to meeting the relevant eligibility criteria.

John Perri commented: “This change simplifies the rules governing superannuation contributions and will increase flexibility for older Australians to top up their nest eggs. Individuals aged 67 to 75 will now have a unique opportunity to be able to contribute for the first time, without having to meet the work-test, proceeds from an inheritance or the sale of an asset into their superannuation as non-concessional contributions. This will further boost their overall income in retirement.

“For example, Kate is age 70 and has not worked and has not contributed to superannuation for many years. She sells an investment property in August 2022 for $450,000. Under the current rules, Anjum is ineligible to contribute to superannuation. From 1 July 2022, she will be able to contribute up to $110,000 into superannuation in the 2022-23 financial year, and then a further $330,000 in the 2023-24 financial year.”

Reduction in downsizer age to 60

Currently, contributions from home sale proceeds to super can only be made by Australians aged 65 or older. This age will be lowered from 65 to 60 from 1 July 2022.

John Perri commented: “Individuals aged 60-64 will now have more flexibility in organising their financial affairs on selling their home, with the ability to contribute up to $300,000 of the sale proceeds into superannuation. This is in addition to the normal superannuation contribution caps.”

First Home Super Savers Scheme withdrawal increase

The amount of eligible contributions for Australians that can count towards maximum releasable amount for FHSS scheme will increase from $30,000 to $50,000. The eligible contributions that can count towards FHSS each financial year will remain at $15,000.

John Perri commented: “This small change to the First Home Super Saver Scheme will further assist first-home buyers in using  Australia’s superannuation system as a tax-effective way to save for part of their home deposit.”

50 per cent reduction in minimum pension payments

The 50 per cent reduction to minimum superannuation drawdown requirements for retirees, originally announced at the start of the Covid pandemic in March 2020, will be extended to 30 June 2023.

John Perri commented: “Amid volatile investment markets, this decision helps in providing some stability for Australians managing their wealth in retirement.”

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AMP has launched educationHUB to assist advisers.

North’s virtual educationHUB, launched in 2020, has emerged as an important learning resource for thousands of advisers during the pandemic.

Launched just after the onset of COVID, the educationHUB has held seven education series and delivered more than 70 webinars, covering more than 25 topics.

The webinars, available to any adviser in Australia, have had close to 5,000 attendees across both external and AMP aligned advisers.

Education topics cover both professional and personal development, including practice management, personal wellbeing and resilience, investment, client engagement, technical strategies, and leadership.

AMP Australia, Director of Platforms, Edwina Maloney, said: “Providing advisers with access to quality education resources to help them deliver great advice and strengthen their businesses is central to our value proposition for the North platform – we believe it’s a key differentiator.

“Through the educationHUB we provide advisers with access to some of the best minds in the industry, on a range of topics and themes important to them. AMP’s inhouse experts, including John Perri and our TapIn team, and AMP Capital’s Chief Economist Shane Oliver, participate in the webinars.

“The challenges of COVID led us to think differently about how we communicate and share knowledge with advisers. North’s virtual education program is a great example of how we’ve adapted, and will remain an important service for advisers into the future.

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John Perri

Clients of AMP financial advisers are seeking out strategies to rebuild their superannuation balances as enquiries about COVID-19-related help start to ease, according to the latest figures from the technical adviser support team.

Data from the month of May^[1] shows voluntary concessional and non-concessional super contributions were the most common topic dealt with by advisers compared with April, when advice on early access to superannuation was most in demand.

Calls about COVID-19 were still 9 per cent of all enquiries received in May, but this was well down from the 24 per cent in April.

AMP Technical Strategy Manager John Perri said the government’s super early release scheme was still providing critical assistance to thousands of Australians but it was clear that others who had the capacity to make additional super contributions were considering doing so ahead of the end of the financial year.

“Not everyone has the funds to contribute more to super at the moment, but it’s encouraging to see more Australians turning their minds to rebuilding their superannuation and retirement balances,” Mr Perri said.

“Recently introduced changes, such as the relaxation of the rules on concessional contributions, are encouraging people to make additional contributions where they can.”

Following changes to the rules in 2018, this is the first full financial year where individuals with total super balances under $500,000 (as at 30 June 2019) are permitted to use their unused concessional contribution allowance from the previous financial year.

“This means someone could potentially contribute as much as $50,000 this financial year,” Mr Perri said.

“The relaxation of the rules is especially helpful for those nearing retirement who haven’t been able to make contributions their full working life, such as women who’ve had interrupted careers, as they now may have a greater capacity to make ‘catch-up’ contributions at the concessional tax rate of 15 per cent.”

Mr Perri said there were additional changes yet to be passed by Parliament but due to take effect on 1 July 2020 that would also assist older working Australians looking to rebuild their super.

The new legislation enhances a measure recently introduced that increases the age up to which super contributions can be made without having to meet a work test from 65 to 67.

“This change recognises that many of us may have to work longer to have adequate savings for our retirement,” Mr Perri said. “Extending the work test age to 67 will allow more individuals aged 65 and 66 to top up their super without having to meet the work test, if they are financially capable of doing so. For some this is important after the impacts of COVID-19 on incomes and investments.”

Top client issues dealt with by advisers in May 2020

1. Concessional Super Contributions
2. Non-Concessional Super Contributions
3. Dealing with a Death Benefit
4. Concession Cards
5. Early Release of Super

———-

[1] Based on calls to TAPIN by advisers

The post Interest from advised clients in rebuilding super rises as COVID-19 queries ease appeared first on AdviserVoice.

John Perri

Early release of super was the topic most frequently asked about by advisers’ clients during March and April as the government sought to limit the fallout from the Coronavirus, according to new figures from AMP’s technical adviser support team.

The next most asked about issue was minimum pension drawdowns as the government relaxed the rules and retirement balances were hit by the volatility in financial markets.

This was followed by enquiries about the federal government’s JobSeeker payment and JobKeeper wage subsidy.

AMP Technical Strategy Manager John Perri said the government was making it relatively easy to apply for super withdrawal, so people needed to carefully consider their decision and ensure they met the eligibility criteria.

“This is a great initiative by the government, which is supporting Australians doing it tough, but it will impact retirement balances. We’re therefore encouraging people to make sure they understand the implications and all available options to support their finances before applying for early release,” Mr Perri said.

ASIC’s retirement savings calculator shows that someone aged 25 withdrawing the maximum $20,000 this year would have $47,000 less in today’s dollars by the time they retired at 67.

Mr Perri said a range of measures were available to help people through a period of lost income, both from the government and private sector, such as the mortgage payment pause offered by the banks.

AMP has launched a new web site to help people with the decision to access super early.

Similarly, Mr Perri said those seeking to apply for the fortnightly JobSeeker payment of $1,150 (which includes the $550 Coronavirus supplement) should be aware that while eligibility requirements like the assets test had been relaxed because of the virus, other measures like the suspension of the activity test would only apply until 22 May 2020.

The change in the minimum pension drawdown rules was welcome but also came with additional considerations, Mr Perri said.

Retirees with account-based pensions should be aware that the change applies to both the 2019-20 and 2020-21 financial years. For 2019-20, some retirees may have already received their reduced minimum pension and may not want to draw any more income so as to preserve their assets against investment market falls. For the new financial year, retirees drawing the minimum may only receive the reduced minimum (for example, 2.5% if aged 65 to 74, rather than the standard 5%).

“Retirees with account-based pensions and drawing the minimum payment should check to see how their provider is treating the change from 1 July 2020 to prevent being paid more or less in pension than they want for the year,” Mr Perri said.

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John Perri

AMP research has found part-pensioners could receive a lump sum payment of up to $178 for singles and $234 for couples when the federal government’s deeming rate changes come into effect next month.

The deeming cut is the first since 2015 and was announced earlier this year. It will be backdated to 1 July meaning eligible part-pensioners will receive a backdated payment on 19 September 2019.

The deeming cut will coincide with a scheduled increase to the age pension – yet to be announced by the government – giving pensioners a double pay rise.

AMP Technical Strategy Manager John Perri said for most pensioners it’s a modest increase to their income.

Mr Perri said: “Pensioners will have two reasons to smile in September with the scheduled increase to the pension coinciding with the deeming rate cuts.  Although the changes for the vast majority of pensioners are relatively small, having some extra money in their budgets to tackle cost-of-living expenses is a positive thing.

“The pension is means tested and looks at a single or couples’ level of financial investments, income and assets, to determine how much they receive each fortnight.

“Having a good understanding of how many investments and other assets you can hold before your pension is impacted and by how much is a key tool to help plan for retirement.”

The higher deeming rate is being reduced by 25 basis points to 3.00 per cent for singles with financial investments over $51,200 and couples with financial investments over $86,200. The lower deeming rate is reducing by 75 basis points to 1.00 per cent for financial investments under these thresholds.

Mr Perri said: “Deeming rules are used to assess income from financial investments for social security purposes. Deeming assumes that financial investments are earning a set rate of income, regardless of the amount they are actually earning. Deeming applies to most financial investments, not just saving and term deposit accounts, including listed and unlisted shares, insurance bonds and many more.”

Deemed income is added to a recipient’s social security assessable income from all other sources and the total amount is then used to calculate the rate of social security entitlement under the income test.

Deeming thresholds are indexed annually on 1 July.  If required, changes to the deeming rates are usually made in March or September although rates can be changed at other times during the year if the returns in the financial market fluctuate significantly. Prior to this change, the previous change to deeming rates occurred on 20 March 2015.

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John Perri

The new financial year will see a raft of laws and scheduled changes coming into force impacting everything from extra super contributions, through to the age you can access the pension and the introduction of a government-funded reverse mortgage option for self-funded retirees.

AMP Technical Strategy Manager John Perri explains how the key policy changes work and what they mean for Australians. 

Summary of key changes:

• Pension age increases to 66
• ‘Work bonus’ for eligible pensioners gets a boost
• Self-funded retirees and pensioners now able to access a government-funded reverse mortgage on their homes
• Protect Your Super laws come into force
• The age Australians can access their super increases to 58
• Eligible Australians now able to contribute more to super using ‘catch up’ rules
• Relaxation of the ‘work test’ for eligible retirees to help them contribute more to super

Centrelink

Pension age increase to 66

Australians born between 1 January 1954 and 30 June 1955 will now have to wait until they turn 66 before they can receive the age pension. This is part of an ongoing schedule to increase the age pension to 67 by 1 July 2023.

The maximum rate for the Age Pension, including supplements, is currently $926.20 for a single person per fortnight. If you are a couple, the rate is $698.10 each per fortnight.

Work Bonus

The ‘work bonus’, which aims to encourage people who’ve reached pension age to continue doing some paid work, is getting a boost.

Currently, eligible pensioners can earn a $250 per fortnight before their pension is impacted.

From July 1, this will be increased to $300. That means, a single pensioner can earn a maximum of $474 per fortnight ($300 from employment, $174 from other income) before their pension payments are reduced. The self-employed, like sole traders, will now also be able to apply for the ‘work bonus’ for the first time.

Government reverse mortgages for retirees

The revamped Pensioners Loan Scheme allowing retirees to boost their income through a reverse mortgage on the family home is about to come into effect in the new financial year.

The enhanced Pensioners Loan Scheme will now be open to full aged pensioners and self-funded retirees. Previously only eligible pensioners were able to access the scheme.

AMP modelling shows a self-funded retiree will now be able to borrow up to a maximum $36,000 per year and a self-funded retiree couple could potentially borrow up to a maximum $54,000 per year, paid in fortnightly instalments.

New means testing rules for new lifetime income streams commence

From 1 July 2019 retirees will have more options when it comes to starting a lifetime income stream.

In addition to immediately payable lifetime annuities, retirees can also purchase a ‘deferred lifetime annuity’, which will pay them an income for life from a designated age in the future.

The Centrelink means tests have been revised to accommodate this development, and the big change is that asset-tested retirees may benefit from a 40 per cent asset test discount if they commence a lifetime income stream from 1 July 2019.

Lifetime income streams may not be the right strategy for everyone.  It is important to weigh up your personal circumstances or seek professional advice. 

Superannuation

Protect Your Super laws

New rules called the Protecting Your Superannuation (PYS) package are about to take effect.

The key changes include low balance and inactive superannuation accounts being transferred to the Australian Tax Office (ATO), fee caps on certain balances under $6,000, the banning of exit fees and insurance cover being automatically switched off on super accounts that have been inactive for 16 months or more, unless members opt to retain it.

Preservation age increases to 58

The age you can access your super, known as the preservation age, is on the way up.  Individuals turning 57 between 1 July 2019 and 30 June 2020 will have to wait until age 58 (from 1 July 2020) to access their super.

This will also delay the start of accessing the popular Transition to Retirement Pension, where you can access up to 10 per cent of your super as an income stream, to combine with paid work.

Playing catch up with your super

For the first time, if your total super balance is below $500,000 at 30 June 2019, the government is allowing you to play super catch up. That means you can potentially contribute more of your pre-tax income to super.

The concessional contributions (pre-tax) cap is currently set at $25,000 per year.  From July 2018, if you only contribute, for example $10,000 to super, you are now allowed to carry the unused $15,000 forward into the following year. And it doesn’t end there. You can continue rolling over the unused portion of your contributions cap for up to five years.

From 1 July 2019, you can use the unused concessional cap from the previous year. Using the example above, if you have unused cap of $15,000, you can contribute up to $40,000 in 2019-20 as a concessional contribution. This will reduce your taxable income. 

Relaxation of the ‘work test’ for eligible recent retirees

This is the first-year eligible retirees aged 65 to 74 with a super balance below $300,000 (as at 30 June 2019) will be able to make voluntary super contributions for 12 months from the end of the financial year in which they last met the work test.

Currently, to make voluntary super contributions you must work a minimum of 40 hours in any 30-day period in a financial year.

The reason some people make voluntary super contributions at this stage is often to take advantage of the generous tax conditions within super and potentially increase their retirement balances. However, this may not be the right strategy for everyone.

Before making a financial decision, weigh up your personal circumstances and consider professional advice where appropriate.

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