Money Management | Vol. 35 No 22 | December 2, 2021

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www.moneymanagement.com.au

MAGAZINE OF CHOICE FOR AUSTRALIA’S WEALTH INDUSTRY

Vol. 35 No 22 | December 2, 2021

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INFOCUS

The average advice firm

RETIREMENT INCOME

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Longevity challenges

WRAP UP 2021

CGT for small businesses

Advisers should help change spending behaviour BY JASSMYN GOH

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A case of deja vu FOR the world, 2021 may have been viewed as a continuation of the environment created in 2020 due to the COVID-19 pandemic, albeit now helped by the development of a successful vaccine. For advisers, it is like a case of déjà vu as they battled with yet another round of compliance and legislation brought in as a result of the Hayne Royal Commission. They also had to rush to complete the Financial Advisers Standards and Ethics Authority (FASEA) exam before the end of the year. Although an extension was announced until 30 September, 2022, this only applied to those who had failed the exam twice. FASEA was also set to be wound up into the Australian Securities and Investments Commission (ASIC) from 2022 after the body was criticised for poor organisation and management, going through three chief executives in as many years. Meanwhile, in markets the ASX 200 remained in positive territory with returns of 16% since the start of the year but lagged global markets as the second wave of the pandemic threw multiple states into an extended lockdown while other countries were opening up. It was yet to be seen what the long-term economic effect of this would be but forecasters were optimistic Australia was already coming out of the worst of it.

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TOOLBOX

FINANCIAL advisers should focus on changing the behaviour of clients and delivering advice as retirees are not spending their retirement income, according to a whitepaper. Speaking at a media briefing, MYMAVINS consulting partner, Jason Andriessen said despite people not intending to bequest large amounts of their superannuation, they were not spending it either as they did not know how much to spend. Andriessen said many retirees used the government’s accountbased pension minimum level as their guide. “Most of the value that we add in the short-term is helping a client feel more confident to spend, understanding what they control and what they can’t control, and having a plan B so that they feel more resilient. We are, as an industry, standing in the way of

that,” he said. “Financial advisers should focus more on changing the behaviour of their clients and delivering advice is my observation. “Delivering a statement of advice, and I get that that’s the legal requirement, with 20-point action plans is not helpful. It’s creating learned helplessness and not empowering at all. If we can get to a stage where we’re changing behaviour one at a time, I think that’s the key.” He said changing behaviours started with redefining what a good financial decision was and if client satisfaction surveys were repurposed it could measure how confident and in control retirees felt and that would drive different outcomes. Andriessen said MYMAVIN’s 'Retirement: The now and the then' whitepaper commissioned by Continued on page 3

Happy Holidays

from Money Management THIS is the final print edition of Money Management for 2021. The entire Money Management and FE fundinfo team wish our readers a safe holiday season and a prosperous 2022. Money Management will resume print publishing in February, 2022.

Full feature on page 14

25/11/2021 1:39:42 PM


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Money Management | Vol. 35 No 22 | December 2, 2021 by FE Money Management - Issuu