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Exchange Traded Funds (ETFs) offer investors a simple, transparent and diversified investment solution.
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Proposed reforms to the Australian financial services industry will position Australia as one of the leading financial service markets in the world in terms of low cost and transparency, according to Vanguard Investments Australia's new managing director, Mr. John James.
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Vanguard Investments Australia has announced that John James has been appointed as Managing Director, effective 1 May.
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News & Commentary
Super death benefits – be prepared 15 Jun 10
The rapid ageing of Australia’s population means that complaints to the Superannuation Complaints Tribunal about super death benefits will inevitably rise.
As Rice Warner Actuaries forecasts in their latest Superannuation Market Projections report, the percentage of retirees in our ageing population who choose to take superannuation pensions rather than lump sums will markedly increase.
And in turn, the growing popularity of superannuation post-retirement products means that many more members are likely to die with super death benefits for distribution among their eligible dependants (as defined by superannuation law).
Interestingly, the Superannuation Complaints Tribunal’s March quarter bulletin, released last week, shows that the highest proportion of complaints to the tribunal is still about super fund administration. But complaints regarding super death benefits, which include life insurance payouts through a fund, continue to relentlessly rise.
In the March quarter, the percentage of complaints within the tribunal’s jurisdiction about fund administration remained stable at 48% wereas complaints about death benefits rose to 37% ‐ up from 35% i the previous quarter.
It seems only a matter of time until complaints about super death benefits resumes its pre-GFC position as the number one source of complaints to the tribunal.
When the sharemarket was sharply falling, many more fund members complained about such things as the time taken by a fund to switch between investment options and to other funds. It is likely to be a different case when returns are positive.
Nevertheless, high market volatility is likely to encourage members to keep a close watch on the time taken by funds for any requested switching.
With the continued rise in complaints about death benefits as the population ages, it is even more worthwhile for members and would-be beneficiaries to gain an understanding of how super death benefits may be distributed by fund trustees.
Such an understanding may reduce the possibility of unfortunate disagreements, between family members in particular, after a member dies. A good starting point to gain this knowledge is the tribunal’s website which includes some valuable case studies. (See http://www.sct.gov.au/)
* Written by Robin Bowerman, Head of Retail at Vanguard Investments Australia.
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