Rice Warner: Superannuation objectives

Rice Warner is broadly supportive of the Financial System Inquiry’s (FSI) recommended primary and subsidiary objectives of superannuation but with some reservations and suggestions.

We suggest that the primary objective is extended to cover “adequacy” of retirement income and point to the significant omissions in the subsidiary objectives of the roles of life insurance and non-superannuation savings.

Our comments are in Rice Warner’s submission in response to the recent Treasury discussion paper Objective of Superannuation.

We support the approach of having an overarching, primary objective for superannuation. All future changes should be measured against this objective – before being introduced. Yet a single, simple statement is unlikely to provide sufficient focus and would probably become just a slogan.

Primary objective

Rice Warner proposes a small amendment to the FSI’s recommendation so that the primary objective is “to supplement or substitute the Age Pension to provide an adequate income in retirement”.

We are simply adding the word “adequate”.

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Source: Rice Warner

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Asset-based fees dwindle as firms price for complexity, not wealth

Asset-based fees dwindle as firms price for complexity, not wealth

New research has found that the shift away from asset-based fees is gathering pace, with advice fees increasingly being based on the complexity of the client, not on portfolio size. Advice firms are shifting to charging for the technical and structuring expertise that keeps clients on track and helps stop them from making expensive mistakes.

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