Application
This unit describes the skills and knowledge required to provide general advice to clients relating to a range of retirement planning issues.
It applies to individuals who need to keep up-to-date with current issues and requirements relating to retirement including general financial issues and risk, knowledge of income streams and annuities, the social security system, aged care facilities and estate planning While this unit entails providing information to clients it does not cover the provision of personal advice and is intended as a general overview of post-retirement planning issues.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify trends and issues relating to retirement and retirees | 1.1 Research current information on demographic trends relevant to the aging population 1.2 Identify current issues relating to consumer behaviour of retirees 1.3 Review the financial implications of longevity in retirement |
2. Research key financial issues and risks in retirement | 2.1 Identify the key financial risks for people in retirement 2.2 Analyse the implications of adverse financial circumstances that can impact on an individual approaching retirement 2.3 Review a range of post-retirement product types and their relationship to managing financial risk 2.4 Analyse regulatory requirements relating to the provision of financial advice 2.5 Identify sources of general information and guidance relating to financial issues and risks in retirement to provide to clients |
3. Outline the role and key features of the social security system impacting on retirees | 3.1 Research current information on aged benefits, payments and services and advise clients to contact Centrelink to gauge their eligibility’ 3.2 Describe how account based and non-account based income streams and annuities operate within superannuation and other private income streams 3.3 Describe the relationships and links between government aged pension and superannuation and other private income streams 3.4 Describe the impacts government benefits can have on an individual’s income in retirement |
4. Provide general information on aged care options and issues to clients | 4.1 Research aged care options and facilities available in the community 4.2 Explain the key features of regulatory requirements relevant to aged care to clients 4.3 Describe general information relating to aged care options to clients and explain how sources of further information can be accessed |
5. Provide information and outline the significance of estate planning to clients | 5.1 Explain the nature and purpose of an estate plan to clients 5.2 Outline general information on tax issues and consequences for dependants of retirement income stream products including lump sum payments and reversionary pensions to beneficiaries 5.3 Outline the legal requirements and issues relating to wills, powers of attorney, trusts and other estate planning matters to clients 5.4 Explain general estate planning and death benefit options using language and terminology that the client can understand |
Evidence of Performance
Evidence of the ability to:
research and actively maintain currency of key information relevant to retirement planning
provide general information to clients on issues relating to aged care and retirement options.
explain the general impacts of social security on an individual's income in retirement to a client
explain the importance of estate planning to clients.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must: describe organisational policies, procedures and requirements relevant to providing information to clients and relevant stakeholders summarise the key demographic trends relating to seniors and retirement including: average life expectancy improvements in mortality longevity risks to income sources in retirement describe issues relating to consumer behaviour impacting on retirement including: biases skills and work expectations cultural issues job prospects for mature age workers budgeting for retirement explain key regulatory requirements relating to the provision of financial advice outline the key financial risks for retirees including: longevity market changes and adverse market events inflation interest rate changes political risk how long money will last discuss the importance of preparing for and timing retirement including consideration of timing of adverse market events describe a range of post-retirement product types and their relationship to managing financial risk such as 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 outline types of aged care residential options including: retirement villages high and low care nursing homes in home government support programs provide an overview of costs, services and eligibility requirements associated with different types of aged care facilities outline key aspects of regulatory requirements relating to aged care facilities outline eligibility requirements for accessing aged pensions and social security benefits including: means testing concept of deemed, gross and net actual income identify non-financial issues to be considered when planning for retirement including: family matters health matters where to live insurance identify and distinguish between personal and retirement goals explain issues related to estate planning and inheritance describe the purpose and key features of wills, powers of attorney and trusts explain the roles and responsibilities of a power of attorney and a trustee outline taxation issues relevant to estate planning outline tax issues related to retirement benefits and associated estate planning options. |
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the superannuation field of work and include access to:
office equipment, technology, software and consumables
organisational policies and procedures including requirements for handling confidential client information.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Learning | 1.1-1.3, 3.1, 4.1, 5.1 | Maintains own knowledge and responsibly shares information gained from experience and research with others |
Reading | 1.1, 1.2, 2.1 | Interprets written and numerical information from a range of sources and identifies relevant and key information |
Oral Communication | 2.5, 4.2, 4.3, 5.1-5.4 | Uses language and concepts appropriate to audience and purpose to convey and clarify information Uses questioning and active listening in verbal exchanges to determine and confirm requirements |
Numeracy | 3.3, 3.4, 5.2 | Interprets financial information and data accurately |
Navigate the world of work | 2.4, 4.2, 5.3 | Develops knowledge of and adheres to legal, regulatory and organisational requirements relevant to own work role Ensures industry and product knowledge is current and is used in compliance with implicit and explicit organisational protocols |
Interact with others | 2.5, 4.2, 4.3, 5.4 | Uses effective communication strategies to convey information to a diverse range of clients encountered in the work context Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others |
Get the work done | 2.5, 4.3, 5.4 | Takes responsibility for tasks and decisions relating to client advice and support that complies with legal and organisational requirements, and recognises when client requires specialist assistance Uses the main features and functions of digital tools to access and convey information |
Sectors
Superannuation