July 2019

24Jul

Two funds merge to form Australia’s second-largest pension fund

First State Super and VicSuper said on Tuesday that they have signed a binding deal to merge, creating Australia's second-largest pension fund as regulatory pressure drives consolidation. The new superannuation, or retirement, fund would have about A$120 billion (S$115 billion) in assets under management servicing over 1.1 million workers, the nonprofit funds said in a joint statement. AustralianSuper is the largest, managing about A$160 billion. A merger was a "proactive step for the two funds, and one that's very...

July 24, 2019
News, Slider,
Read more...
15Jul

Australia. Pensioners gain $1000 boost as deeming rates cut

Pensioners will be up to $1000 a year better off from September when the Morrison government changes the income test for pensioners. The government will cut deeming rates, used to estimate how much some pensioners earn on their financial investments, for more than 630,000 pensioners and nearly 350,000 people receiving other income-tested Read more @AFR

July 15, 2019
News, Slider,
Read more...
08Jul

Australia. Pension payments could increase with change to deeming rate

More than half a million Australians could have their pension payments increased with the government on the cusp of making a significant change. Labor claims if the government lowers the deeming rate by the same amount the Reserve Bank has lowered interest rates, some part-pensioners will be anywhere between $62 and $3875 a year better off.The government is unlikely to lower it by that much because it would almost wipe out its surplus but hundreds of thousands of pensioners...

July 8, 2019
News, Slider,
Read more...
02Jul

Australia’s Top Pension Fund Explores Merger

Australia’s top-performing pension fund is considering merging with a smaller peer as consolidation grips the nation’s retirement industry. Melbourne-based Host-Plus Pty, which manages about A$43 billion ($30 billion) of retirement savings from hospitality and tourism workers, signed an agreement with Club Super to formally begin due diligence on a merger, the funds said in an emailed statement Tuesday. It’s anticipated the transaction will be approved, bringing greater benefits to members, the statement said. It’s the second merger in Australia’s A$2.8 trillion...

July 2, 2019
News, Slider,
Read more...

June 2019

26Jun

Australia. The ‘average’ retiree is now self-funded

Australia has reached a major milestone, with most new retirees having enough savings to be self-funded rather than reliant on the age pension, new research shows. More than half of 66-year-olds were not accessing the age pension at December 2018 because their assets and income were too high, while 20 per cent were on a part pension. Only 25 per cent were drawing a full age pension. According to Jeremy Cooper, chairman of retirement income at Challenger who conducted...

June 26, 2019
News, Slider,
Read more...
20Jun

Australia to Fix Flaws in World’s Fourth-Biggest Pension Pool

Australia’s third-largest pension fund is boosting its financial services division as a wave of baby boomers look to exit full-time work over the coming decades. The government will try again to stop the common practice of young workers automatically being charged for life insurance through their pension plans, Senator Jane Hume, the new assistant minister for superannuation, financial services and financial technology, told a Bloomberg conference Thursday. It will also work to ensure people are given better options for...

June 20, 2019
News, Slider,
Read more...
14Jun

Australian regulator slaps stricter conditions on AMP’s pension funds, shares fall

Australia’s banking watchdog on Friday said it had imposed stricter licensing conditions on AMP Ltd’s pension fund units following concerns regarding its compliance with superannuation laws, sending its shares down more than 4%. The move comes as the country’s largest listed wealth manager works to rebuild its brand after revelations of serious wrongdoing at an inquiry into the financial sector last year, including the charging of fees for services not rendered. Responding to the Australian Prudential Regulation Authority (APRA),...

June 14, 2019
News, Slider,
Read more...
03Jun

Pension fund AustralianSuper to open NY office, hire in London in offshore push

AustralianSuper, the country’s largest pension fund, plans to open an office in New York next year and expand its operations in London as part of a strategy to invest in and directly manage more offshore assets, Chief Executive Officer Ian Silk said. The fund, projected to reach A$300 billion ($207.72 billion) in assets in five years, is forecast to increase its allocation to overseas investments from about half to about 60% by 2024, Silk said at a business lunch...

June 3, 2019
News, Slider,
Read more...

May 2019

30May

Australia. Accountants seek voice in retirement advice provision

Accountants have sought a place at the table when the Government initiates a review of the retirement income system, suggesting an essential element is proving access to affordable financial advice. The Institute of Public Accountants (IPA) has welcomed a recent announcement by the Treasurer, Josh Frydenberg that he will be commissioning a review of the retirement income system which will be inclusive of the interfaces between superannuation, government pensions and taxation. Commenting on the move, IPA chief executive, Andrew...

May 30, 2019
News, Slider,
Read more...
28May

Pension pressures: The future of Australia’s key seniors’ payment

Australia’s age pension appears under increasing pressure. Seniors are living for longer while the workforce that pays the taxes that help fund pensions is a shrinking proportion of the population. It might worry people that the money tap will run dry, but finance specialists say the future of this vital government payment looks safe. They say the growing size of superannuation nest eggs will continue to ease the strain on the public purse, and future governments still have plenty...

May 28, 2019
News, Slider,
Read more...