Australian Workers will stand to get an extra $50,000 in their retirement pot following the Federal Government’s changes to the way financial advisers charge their fees, according to the Australian Workers’ Union.
New laws are set to come into force to prevent financial advisers from receiving commission and benefits which may cause a conflict of interest.
AWU national secretary Paul Howes AWU welcomed the government’s radical changes to the rules determining how workers and retirees pay for and receive financial advice.
He said that the union had been concerned for some time that the value of member’s super accounts had been whittled away due to financial advisers acting in their own interest, stating that conservative estimates suggest that four million workers pay for financial advice they never receive.
“Australian workers have been forced for far too long to pay for financial advice they never ever receive from dodgy financial planners reaping in billions through hidden commissions.
“It is shocking to read recent data which showed that last year $1.3 billion of workers’ money was ripped away from their retirement funds, and re-directed into financial planner’s pockets and their profit hungry allies in the for-profit bank-controlled super funds,” Howes said.