The changing regulatory environment has made investors seek out alternative strategies, causing a significant increase in adviser interest in investment bonds, Australian Unity has said.
The company said it saw a growing popularity of investment bonds, in particular after the 1 July superannuation changes.
According to the firm, financial advisers used investment bonds to assist clients capped out of super to find alternatives for investing excess cash and help them prepare for their retirement.
Also, advisers aimed to use the investment bonds to help their clients enable retirement prior to superannuation preservation age, help families manage intergenerational wealth transfer and help parents bridge the gap in education funding.
Australian Unity Wealth and Capital Markets’ general manager, Derek Emery said: “While superannuation is still going to be the most tax effective way for the majority of people preparing for retirement, there is a growing focus on diversifying structures and providing financial solutions for people who are at different stages of their lives.”
“We have certainly seen a spike in the popularity of investment bonds following the 1 July superannuation changes.
“Given their tax benefits and flexible withdrawal options more and more Australians are appreciating the relevance of investment bonds in their investment structures.”
