The federal government’s amendments to Australia’s superannuation system has prompted a number of financial services institutions to act.
IOOF and Aviva have each rolled out new initiatives to their adviser network just days after the federal government handed down the 2009 budget.
In a move to boost awareness about the importance of saving for superannation, IOOF has developed WealthBuilder, a multi-generational investment product designed to meet the differing needs of clients at various milestones in their lives.
“Considering that the 2009 budget has amended changes that were introduced only three years ago, superannuation is an asset with an uncertain landscape,” IOOF Investor Solutions general manager Renato Mota said.
“The constant changes and lack of certainty surrounding superannuation undermine the need to encourage the population to save for retirement in a well diversified manner.”
Meanwhile, Aviva has released a new choice in fee-based remuneration through its Business Super product.
Advisers will now have the choice of using either a percentage of assets fee model or a new flat dollar fee model.
The new fee option follows the rollout of the $3 per week flat dollar administration fee introduced in March 2008.
“Our new flat dollar remuneration option provides advisers and clients with an easy to understand fee structure,” Aviva wealth management products general manager Andrew Barker said.
“Aviva has been working hard with advisers to simplify fee structures to meet the growing demand for the fee for service model and we wanted to provide advisers with the flexibility to choose between remuneration structures,” he said.
Earlier this week, the Rudd government slashed the annual cap on concessional superannuation contributions from $50,000 to $25,000. For those aged over 50, the transitional cap will fall from $100,000 to $50,000.
