The Investment Trends December 2014 Retirement Planner Report, which surveyed 617 financial planners between October and December 2014, showed that taking into account the trade-offs between five separate investment objectives, 68 per cent of planners identified ‘highest income’ as the first or second-most important priority for meeting the best interests of retiree clients.
‘Lowest risk’ was rated first or second priority for 65 per cent of planners, according to the report.
Other factors, such as high liquidity, lowest cost and highest capital growth were considered less important for the retiree demographic.
The report also indicated one third of planners, or 32 per cent, expect retirees in the 75 or older cohort to comprise a greater percentage of their client base by 2017.
It also showed 35 per cent of planners expect their clients in the accumulation phase to represent a smaller proportion of their client base by 2017.
Investment Trends senior analyst Recep Peker said planner expectations reflect Australia’s baby boomer generation.
“Over the next 25 years the number of Australians aged 65 and over is expected to double and planners are actively shifting their focus to align with this,” he said.
Not necessarily Mike, high risk generally infers a correlation with high RETURNS, not just income alone. Returns are income and growth combined.
Of course high income assets can still be very high risk.
The trick is knowing the difference…
How can 68% of planners rate “highest income” as first or second most important AND yet 65% of planners rate “lowest risk” as first or second priority? Seems counter-intuitive to me.
Higher risk is typically correlated with higher income.