The nation’s largest wealth managers are bracing for a potential government crackdown on retirement products engineered to artificially trim superannuation balances to max out a member’s aged pension entitlements.
Widely labelled as “pension bonus” or “boost” products, these strategies have become increasingly popular and represent more than $21.5 billion of funds under management at big retail super powerhouses including AMP, MLC and Colonial First State, where they have been used to poach industry fund members as they near retirement.
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