The Royal Commission into the banking industry has seen some banks come under fire for giving financial advice that benefits themselves or the company they work for. NAB admitted to compensating more than 750 financial advice clients since 2009 for the bad advice they received, and had to sack 40 staff as a result.
While we hope to never see these extreme cases happen again there is the risk of advisers from smaller organisations, or who operate independently making similar mistakes. Our Superannuation consultants have seen an increase of advisors recommending members to roll funds into a super account that will pay the advisor a commission, without necessarily checking if this is right option for the member.
While we try to keep our members as informed as possible about the risks, there are a few things you can do to help yourself.
How to protect yourself
Financial education offers a person the chance to make better and more informed financial decisions and provides a level of defence against bad advice. Learning about the functions of superannuation and pensions will allow you to ask the right types of questions when seeking financial advice. It will help you better understand and become more involved in setting up your retirement plan.
While there are undoubtedly good financial advisers out there, more so than bad ones, nobody would willingly risk their life savings and financial futures on unsuitable advice. Making sure you're informed about your super and finances is one way to avoid this happening.
Members of Vison Super have access to many resources, from attending educational seminars or receiving professional financial advice on money management and preparation for retirement. And unlike advisors that work for the big banks our advisors do not receive commissions or bonuses for recommending certain products to you, they will give you advice that’s only ever in your best interests.
For more information go to visionsuper.com.au/advice or contact us on 1300 300 820 for an appointment with one of our financial planners.