Connect 219
28 April 2011

Seniors welcome changes to financial advice reforms

Older Australians have today welcomed the Federal Government’s announcement of financial advice reforms which includes better protection for consumers receiving information from financial advisers.

Announced by Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, the changes are detailed in the Future of Financial Advice reforms.

Key elements in the reforms include a requirement for financial advisers to get clients to ‘opt-in' every two years if they wish to continue to receive ongoing advice; banning all commissions on risk insurance inside superannuation and a broad ban on volume-based payments.

National Seniors chief executive Michael O’Neill welcomed the changes after calling for better protection for consumers, including transparency on fees.

“After the collapse of Storm, Trio, Westpoint and other financial service providers, it was clear that trust in the sector had certainly diminished,’’ O’Neill said.

“Older Australians are a particularly vulnerable group when it comes to receiving financial advice so we believe these changes are a welcome step in the interest of all consumers.”

Last year O’Neill also spoke at the Conference of Major Super Funds and delivered the strong message that older Australians had lost faith in their super funds and much of it was due to the poor customer service and financial advice they had received.

Mr Shorten said the government would continue to consult with stakeholders in the lead up to the release of draft legislation later this year.

Download the information pack covering the changes.

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Guide to accommodation choices for older people

A new edition of a comprehensive accommodation guide outlining housing options for older people is now available.

Entitled Accommodation choices for older Australians and their families: what older Australians and their families need to know, the publication has been developed by the Department of Families, Housing, Community Services and Indigenous Affairs.

The publication discusses moving into a more suitable home, moving into a retirement village, moving in with family or friends or into a residential home.

It has practical advice on selling the family home whilst on the pension, as well as the implications of renovating or having to live apart from a spouse.

It also contains information on paying for care and accommodation, getting help to manage decision, support for carers, ways to help stay at home and much more information.

To obtain a printed copy of this publication phone 1800 050 009 or email the Department.

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Heart health in the spotlight in May

During Heart Week 2011 from Sunday 1 May to Saturday 7 May, the Heart Foundation will be raising awareness of heart disease as the number one killer of Australian women.

Heart disease doesn’t just affect older men. It is the number one killer of women in Australia.

According to the Heart Foundation, women are four times more likely to die of heart disease than breast cancer.

The Heart Foundation is urging all Australians to participate in Heart Week and help raise awareness about these important health issues.

You can also register to be part of the Heart Foundation’s Healthy Heart Challenge.

Starting on 1 June 2011, this free 10-week Healthy Heart Challenge will provide small and helpful steps to assist you to improve your heart health through making simple lifestyle changes.

The important ways to maintain a healthy heart are: be active every day; improve everyday nutrition; increase knowledge of heart health; quit smoking; lower high blood pressure and lower high cholesterol levels.

To find out more about the Healthy Heart Challenge, go to the Heart Foundation's website.

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Poll shows support for republic low

On the eve of the royal wedding, much talk is being had about whether Australia should become a republic.

Earlier this week, a Newspoll showed support for a republic is at a 17-year low of 41 per cent, down from 45 per cent four years ago.

Do you support Australia becoming a republic? Why or why not?

Have your say on the blog.