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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Identify and analyse key financial issues relating to retirement
   • Research current demographic and financial trends impacting the ageing population
   • Analyse implications of adverse financial circumstances that can impact an individual approaching retirement
   • Review a range of post-retirement product types and their relationship to managing financial risk
   • Identify and analyse regulatory requirements relating to the provision of financial product advice
   • Identify sources of general information and guidance relating to financial issues and risks in retirement to provide to client
2. Outline the role and key features of the social security system impacting retirees
   • Gather information on aged benefits, payments and services and advise client to contact Centrelink to determine eligibility
   • Explain to client how account-based and non-account based income streams and annuities operate within superannuation and other private income streams
   • Describe to client the relationships and links between government aged pension and superannuation and other private income streams
   • Communicate to client the impacts government benefits can have on an individual’s income in retirement
3. Provide general information on aged care options and significance of estate planning to clients, within regulatory limits
   • Obtain and provide aged care options to client and explain how sources of further information can be accessed according to regulatory requirements
   • Explain the nature and purpose of an estate plan to client
   • Outline general information on taxation issues and consequences for dependants of retirement income stream products
   • Outline legal requirements and issues relating to wills, powers of attorney, trusts and other estate planning matters to client
   • Explain general estate planning and death benefit options

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

provide information on retirement planning issues when dealing with at least three different superannuation clients; at least two of whom require information on estate planning.

In the course of the above, the candidate must:

demonstrate currency of key information applicable to retirement planning

provide information and general advice to clients on issues relating to aged care and retirement options

explain the general impacts of social security on income in retirement to a client.

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Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

legislative and regulatory requirements relating to the provision of financial advice within the context of retirement planning and superannuation clients

regulatory requirements relating to aged care facilities that impact on retirement planning

taxation issues relevant to:

estate planning

retirement benefits and associated estate planning options

organisational policies, procedures and requirements relating to providing information to clients

common methods to interpret and apply financial data

demographic trends relating to seniors and retirement, including:

average life expectancy

improvements in mortality

longevity risks to income sources in retirement

issues relating to consumer behaviour impacting on retirement, including:

skills and work

expectations and personal preferences and biases

cultural issues

job prospects for mature age workers

budgeting for retirement

financial risks for retirees, including:

longevity and how long money will last

market changes, adverse market events, and their timing

inflation

interest rate changes

political risk

implications of adverse financial circumstances that can impact an individual approaching retirement

post-retirement product types and their relationship to managing financial risk, including the difference between account-based income streams which depend on investment returns and non-account based income streams which depend on consumer price index (CPI) changes

aged care residential options, including:

retirement villages

high and low care nursing homes

in-home government support programs

types of costs, services and eligibility requirements associated with different types of aged care facilities

eligibility requirements for accessing aged pensions and social security benefits, including:

means testing

concept of deemed, gross and net actual income

non-financial issues to be considered when planning for retirement, including:

family matters

health matters

where to live

insurance

estate planning and inheritance, including taxation issues relating to estate planning

retirement income stream products, including:

lump sum payments

reversionary pensions to beneficiaries

purpose and key features of wills, powers of attorney and trusts

roles and responsibilities of a power of attorney and a trustee.

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