A surge of money has flowed into post-retirement products as financial advisers rush to take advantage of the 50 per cent discount on asset tests applied to term allocated pensions.
About $89 billion poured into retirement products, an increase of 16.27 per cent for the September 2007 quarter, according to financial services research house Dexx&R
The top four companies in the market sector recorded over 20 per cent of growth.
They included Aviva-owned Navigator (27.4 per cent), the Commonwealth Bank of Australia-owned Colonial First State (23.5 per cent), Macquarie Bank (23.5 per cent) and St George Bank-owned Asgard Wealth Solutions (21.9 per cent).
At the same time, growth in superannuation slowed for the quarter.
In the three months to September 2007, total retail and wholesale funder under management increased by $7.8 billion, down from the record $48.5 billion increase in the June quarter.
"People are taking advantage of the new asset test rules and as a result are moving their money from superannuation to these retirement products," Dexx&R managing director Mark Kachor said.
