Today’s fall in interest rates highlights the critical importance of older Australians having access to sound, independent financial advice, according to COTA Australia.
Chief Executive Ian Yates said the cut in interest rates meant many older Australian s, particularly self-funded retirees, would need to re – assess how their funds were invested as income from cash investments continues to fall.
“Because of experience before the Global Financial Crisis, many retirees are scared of non-cash investments and don’t know whether to trust advisors”, Mr Yates said today.
“Despite a round of government reforms earlier this year, older people are still at risk of receiving tainted financial advice.
“The introduction of tighter regulation around advisor commissions from third parties was a welcome step forward, but the reforms were a compromise and went only part of the way, and the accountancy bodies squibbed on the opportunity to ban commissions altogether.
“COTA believes older Australians would be better served with a ban all commissions and third-party payments to all financial advisors, including accountants” he said.
Mr Yates also called on the Federal Government and Opposition to commit to swifter reviews of pension deeming rates as interest rates fall.
“Part pensioner retirees can recover some of their loss through an increased pension payment, but retirees generally should not have to shop around for boutique specials on interest rates that cover the deeming rate,” he said.
Media contact: Ian Yates 0418 835 439, Jane Garcia 0434 489 533
