Here’s what you need to know this week:
1. More super data – Since the pandemic took hold in March 2020, the number of new superannuation accounts added into myprosperity is up a massive 36% compared to the five months leading up to March. That is a substantial increase and is indicative of clients and their advisers paying closer attention to retirement portfolios.
2. Less super funds – Under the new early access rules, $29.4 billion has been withdrawn from Super. We don’t know what it will equate to in terms of the number of individual workers who will now have to rely on the age pension in retirement, but the good news is that the advice industry is in the best position to assist clients during this difficult time and ensure clients make good financial decisions. More here.
3. ASIC says get good advice, more often – ASIC says get good advice, more often – The corporate regulator will look to release further guidance facilitating easier provision of scaled advice, helping advisors provide recommendations around a single issue. More here..
4. Property – buy, sell or hold? First home buyers are making the most of falling prices, incentives and low interest rates. Many investors are being forced to sell and the number of investors in the market to buy has dropped 40%. More on how market conditions are rapidly changing. More here.
5. Dividends disappear– APRA has ruled that banks must limit dividend payout ratios to no more than 50%. In the past five years many have paid out at ratios of more than 80%. Morningstar has released a report on where dividend opportunities might be. The report sees the greatest opportunity for rising payout ratios and near-term dividend growth in the utilities, industrials (including defensive infrastructure names), and consumer defensive sectors. More here.