Home ownership and super of highest concern for clients

Over the first half of 2024, AMP Advice’s technical service for its advice network, TapIn, received more than 6,800 queries from advisers.

Based on the data from these queries, AMP found that superannuation contributions and home ownership issues were the most common topics raised, with almost one in five enquiries relating to these issues.

Following this, innovative retirement income streams, navigating limited recourse borrowing arrangements, and aged care were also among the most commonly raised queries during this period.

Throughout the first six months of the year, more than one in 10 queries related to the transfer balance cap, means testing, or total and permanent disability (TPD) benefit tax issues.

Furthermore, one in 10 involved dealing with a death benefit, treatment of assets and income, or condition of release or withdrawals.

Similarly, research by AMP last year found that most Australians ages 50 and over found the retirement system too complex, and that nearly half didn’t know if they would be eligible for the age pension.

Notably, nearly one in 10 Australians indicated that they didn’t feel confident at all in setting up their finances for retirement to maximise their income. Despite this, more than three-quarters said they had not spoken to a financial adviser about retirement planning.

AMP said this disconnect highlights the “importance of reducing barriers towards assessing quality and affordable advice”.

AMP head of technical strategy and TapIn, John Perri, said primary concerns have likely been driven by clients’ desire to maximise their finances as they approached the end of the financial year.

“The last six months have seen a significant focus on super contributions as more and more Australians look to make the most of unused catch-up concessional contribution provisions,” Perri said.

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

Perri noted the important role advisers play in helping Australians navigate retirement planning.

“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,” he said.

“From explaining transfer balance caps to home ownership issues, our advisers play a critical role in breaking down complexity for their clients, helping underline the meaningful difference that advice can make in everyday lives.”