Super will become 'simpler and superior in its attractiveness for all taxpayers' following plans announced in the 2007 federal budget, according to newly appointed superannuation and retirement strategist Kate Anderson.
After July 1, 2007, a superannuation benefit paid either as a lump sum or as an income stream will be tax free for those aged 60 and over. Also, people would have more choice of when and how to draw down their super, Anderson said. "From the financial planning point of view, this has created a great opportunity. Probably more important for [advisers] now will be strategies, looking at the assets that are backing pensions: making sure they are providing cash-flow solutions for their clients to deal with longevity risk once they move to pension phase", Anderson, formerly head of technical services, said.
"We're in the process of developing superannuation and retirement strategies to take advantage of the simplification of superannuation to take us into that new era."
Anderson will help develop its portfolio of investment and retirement products and educate the financial advisory and accountancy market on changes to super. Mariner Financial managing director Bill Ireland said: "The Federal Government's proposed changes to superannuation mean there are now even greater incentives to use superannuation as part of an investment structure for retirement".
