Is the Pension Cap choking retirement incomes?

The Government’s Budget changes are continuing to impact retirement income flows, with the latest data released by specialist research house Dexx&r revealing retirement incomes cash flows as declining by 2.3 per cent in the year to December.

The Dexx&r data, looking at total retail and wholesale funds under management and administration (FUM/A), pointed to increased flows across all segments except retirement incomes which the company had been impacted by the Government’s $1.6 million pension cap.

Among the five largest retail and wholesale managers, Macquarie led the way with a 14.9 per cent increase to $113.1 billion, NAB with 12 per cent, the Commonwealth Bank 7.9 per cent, Westpac with 7.1 per cent and AMP with 5.5 per cent.

Related News:

Looking at the retirement incomes data, the Dexx&r analysis said that during the December quarter net cash flows were negative $4.9 billion which represented a significant increase on the negative $3.5 billion recorded in the September 2017 quarter.

“This net cash outflow highlights the impact of the $1.6 million lifetime cap which took effect in July, 2017,” the analysis said.




Related Content

NAB sell-off could see more redundancies, union says

The move by National Australia Bank to exit its MLC wealth division could see another round of redundancies that could see staff cuts at the bank of a...Read more

AMP Capital buys stake in British Airport

AMP Capital has announced it has acquired 49 per cent of London Luton Airport from Ardian on behalf of investors in its Global Infrastructure Equity s...Read more

AMP board open to adverse Royal Commission findings

AMP Limited has faced a savage assessment in the summing up of senior counsel assisting the Royal Commission into Misconduct in the Banking, Superannu...Read more

Author

Comments

Add new comment