Baby boomers warned off advice

A report written by Macquarie University professor Geoffrey Kingston – and disseminated by think tank the Centre for International Finance and Regulation – argues that baby boomers face a shortfall in professional advice.

“The allocation split between safe-haven and growth assets raises a potential conflict of interest between a client and their adviser,” Professor Kingston wrote.

“Approaching retirement, it stands to reason that an investor should orientate their portfolio towards safe-haven assets.”

The report called for the “next review of financial advice” to examine ways of requiring advisers to “reveal the fragility of financial plans” provided to clients approaching retirement.

“Commissions from product providers should be banned,” he added.

The report predicts that the age 65-plus population will grow to around 23 per cent by 2050 – in addition to a substantial increase in self-funded retirements – reinforcing the need for personalised financial advice.