financial advice, Superannuation

Contributions lead end-of-year concerns

Contributions Personal deductible Catch-up concessional Death benefit Superannuation AMP Advice TapIn John Perri

Super contributions was the key area of concern for many advisers in the lead-up to the end of the financial year as clients sought to use the catch-up provisions.

Superannuation contributions were a leading area of concern for advisers and their clients in the lead-up to the end of the last financial year, according to AMP Advice, which noted issues related to withdrawing funds were also frequently raised.

The firm stated TapIn, the technical service for its advice network, received more than 6800 inquiries in the first half of 2024, many of them relating to contributing to superannuation and managing money within a fund.

“The last six months saw a significant number of queries on superannuation concessional contributions, including personal deductible contributions and the unused catch-up concessional contributions provisions,” AMP Advice said.

“Almost one in five questions received related to superannuation contributions and home ownership issues, whereas over one in 10 related to the transfer balance cap, means testing or TPD (total and permanent disability) benefit tax issues. Similarly, one in 10 queries received involved dealing with a death benefit, treatment of assets and income, or condition of release or withdrawals.”

Other key issues of concern for advisers in the AMP network for the half year to 30 June included innovative retirement income streams, navigating limited recourse borrowing arrangements and aged care.

AMP head of technical strategy and TapIn John Perri said the increased interest in superannuation was a result of more fund members looking at how they could benefit from the unused catch-up concessional contribution provisions.

“With the reduction to personal income tax rates and thresholds from 1 July this month, many Australians have benefitted from bringing forward deductions such as by making personal deductible contributions by the end of financial year for greater tax effectiveness,” Perri said.

He noted the TapIn inquiries were consistent with research conducted last year by AMP, which found Australians aged 50 consider the retirement system too complex and nearly half did not know if they would be eligible for the age pension.

The research also found that while one in 10 people did not feel confident in setting up their finances to maximise retirement income, more than three-quarters of those surveyed had not spoken to a financial adviser about planning for retirement.

“As Australia’s retirement system begins to reach maturity, instilling greater confidence in the ability of everyday Australians to navigate the important transition from accumulation to pension phase remains paramount,” Perri said.

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