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Get em' young, planners told

By Victoria Young
 — 1 minute read
Revised super legislation is attracting the young and wealthy.
g Australians recognise superannuation as a much more attractive investment vehicle following legislative change, research has shown.

Almost a third (30 per cent) of high net worth clients under the age of 30 made extra contributions in May, according to 'The Profile of Private Wealth in Australia: An Insights and Trends' study commissioned by Macquarie Private Wealth.

Sixty per cent went to a financial planner to seek super advice and 97 per cent were prompted to make investments to provide for their future and retirement.

"There's a good case for targeting good clients early," Macquarie Private Wealth national practice manager Doug Webber said.

"I think planners can take from [the research] there's probably more of an emphasis on using super as a retirement saving tool; it's always been there but there's more of a focus for folks now."

Planners should devise smart ways of attracting younger affluent clients, Webber said.

"Let's not gild the lily - traditionally fee-based planners are remunerated on the amount of money invested, so 30 to 40-year-olds are not seen as very valuable," he said.

By offering a broader suite of products, for example mortgages and insurance, and advising client's children, advisers can tap into the high net wealth clients of tomorrow, Webber said.

Almost half (46 per cent) of high net worth individuals made additional superannuation contributions before June 30, the research found.

Also, 52 per cent contribute between one and 40 per cent of their monthly salary to super above and beyond compulsory employer contributions.
Get em' young, planners told
Revised super legislation is attracting the young and wealthy.
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