Demand from financial advisers for wealth accumulation strategies that complement existing superannuation solutions is on the increase, IOOF has said.
"We have seen demand and I think that depending on what happens with the federal budget, pre-budget releases may not come to a solution, but if circumstances change and the landscape changes, it [may] be back into favour," IOOF senior technical services manager Damian Hearn told InvestorDaily.
"It actually comes to the front of the mind for advisers and they think 'are there things that we can do for clients to accumulate wealth in a sufficient manner?'"
Hearn said superannuation continually changed, whereas investment bonds were more stable.
"When we look at superannuation, some people might have a little bit of aversion towards preservation because it is locked up till retirement and contribution cap pressures. So people are looking [for] a complementary strategy to superannuation," he said.
He said advisers should consider investment bonds such as IOOF's WealthBuilder product.
IOOF's WealthBuilder earnings are taxed at IOOFs end, rather than with the investor, meaning the tax paid on the investment income is 30 per cent rather than the client's marginal tax rate.
There is also the prospect of the company tax rate falling, which would further benefit investors.
