More seniors’ assets need to be unfrozen
The Australian Securities and Investments Commission’s (ASIC) changes to hardship withdrawals for those affected by frozen mortgage funds have been welcomed by National Seniors Australia (NSA).
But NSA believes this is only a temporary fix with hundreds of thousands of investors still unable to access around $25 billion of their savings, which have been fully or partially frozen after funds were locked down in October 2008.
ASIC has announced changes that will see fund members able to access $100,000 a year from their accounts (instead of the previous $20,000), up to four times a year.
The hardship withdrawals changes have also been extended to include the beneficiaries of deceased estates and the long-term unemployed.
National Seniors chief executive, Michael O’Neill, said the changes were necessary and long overdue.
“Many retirees have not been able to access their life’s savings and they’ve had to survive on meagre incomes. The changes to existing relief provisions, which increase flexibility for operators, will make it easier for consumers to access their funds if they meet the certain criteria of hardship”.
However, Mr O’Neill warned the Government should expect a backlash from retirees if the issue was not resolved soon.
“What consumers really want is for the Government and industry to work on unfreezing assets as soon as possible,” he said.
“Retirees have been very patient to date, but this can’t go on indefinitely, particularly as economic conditions improve”.
The Investment and Financial Services Association (IFSA) is claiming it may take a further three or four years before.
